The Federal Reserve’s act has descended from an episode of The Twilight Zone
to a particularly absurd Saturday Night Live
The Fed’s Big Lie(s) got much bigger this week.
Jackson Hole: Fed Chair Powell unveils effort to target 'moderately' higher inflation
The Big Lie
“Many find it counterintuitive that the Fed would want to push up inflation.”
Federal Reserve Chairman Jerome Powell unveiled a new framework of thinking for the central bank that will tolerate inflation “moderately” above its 2% target. The Fed also committed to reviewing this policy every five years.
In a speech on Thursday morning, Powell acknowledged the painful lessons of runaway inflation in the 1970’s, but warned that the persistence of low inflation over the last eight years
risks new economic difficulties.
“Many find it counterintuitive that the Fed would want to push up inflation,” Powell said
. But the Fed chief warned that low inflation leads to declining inflation expectations, which has the effect of “diminishing our capacity to stabilize the economy through cutting interest rates.” [emphasis mine]
No. Wrong. False.
Many people consider it to be an economic crime
to intentionally increase inflation.
Inflation is economic cancer
. It undermines the economy by destroying purchasing power.
Inflation is the #1 economic driver of wealth inequality – which has now hit an all-time high in our nations.
It is a hidden consumption tax. If government imposes a 10% sales tax, it reduces our purchasing power by that amount. Inflation does exactly the same thing.
Inflation is an unequivocal economic evil. Every time the Fed (or some other central bank) proclaims that inflation is “good” and necessary, this is a Big Lie.
Inflation is good for keeping asset bubbles inflated (otherwise known as a “Ponzi scheme”). Inflation is good for hiding malinvestment. Inflation is good for (temporarily) wallpapering over insolvency.
Why does every
Fed banker insist every
day that inflation is good? Because the Federal Reserve serves Wall Street (surprise! surprise!).
Wall Street is a gigantic, steaming mound of asset bubbles, malinvestment, and insolvency. And these bankers tell us that their gigantic, steaming mound is “too big to fail”.
This is why the Fed’s “emergency operations” began last September, four months before COVID entered the picture. Wall Street’s bubbles/malinvestment/insolvency were already
on the verge of imploding.
The Bigger Lie
“the persistence of low inflation over the last eight years”
No. Wrong. False.
The only Fed Lie more egregious than claiming that inflation is good is asserting that there is not enough of it.
Inflation is economic cancer, a hidden tax. How could the economy “not have enough” cancer?
Over the past 40 years, about the only thing that the U.S. federal government has been able to accomplish on a bipartisan basis is slashing taxes.
We are told again and again and again by the politicians that lower taxes are always better. If lower taxes are always better, how can higher inflation (a higher tax) be “better” as well?
It can’t. It’s a naked central banker lie.
It’s repeated by the central bankers thousands of times every year. It’s parroted by the Corporate Media millions of times every year – to attempt to program this Big Lie into our psyches.
We have a term for that. It’s called brainwashing.
Making this Big Lie even more ridiculous, in a realm known as “the real world”, inflation is already soaring at multi-decade highs
Look at Wall Street’s precious equities bubbles.
Everyone with an IQ greater than their shoe size has acknowledged that stock prices have completely detached from market fundamentals. That’s a symptom of high inflation.
Does anyone at the Federal Reserve require either food or shelter in their personal lives? Apparently not.
As Fed mouthpieces continually spew the phrase “low inflation”, food prices and urban real estate prices have been soaring relentlessly higher at the fastest pace in history. Very high inflation.
Bond prices continue to set new record highs – issued by obviously insolvent governments. More very high inflation.
In a legitimate economy, it is not even theoretically possible for countercyclical stock prices and bond prices to be simultaneously hitting new all-time highs.
An “ocean” of central bank liquidity – i.e. an ocean of inflation – has pumped up the prices of stocks and (worthless) Western sovereign bonds to utterly insane price levels.
Stock prices. Bond prices. Real estate prices. Food prices. And now lumber prices as well.
All demonstrating runaway inflation.
Yet Jerome Powell insists inflation is “too low”. If his name was Jerome Pinocchio
, he would have poked someone’s eye out with that line.
Then there is gold.
Gold is the ultimate Canary in the Coal Mine to warn us of high inflation. This is why suppressing the price of gold is a permanent objective of the Federal Reserve and other Western central banks.
“…central banks stand ready to lease gold in increasing quantities should the price rise.”
- Chairman Alan Greenspan, Testimony to the Federal Reserve Board, November 1998
Gold “leasing” is a surreptitious tool that the Fed uses to depress gold prices. The well-respected James Turk explained how this dirty deed
works back in 1999.
Despite the Federal Reserve (and Wall Street) doing everything it can to keep the price of gold down, gold has recently broken out to a new all-time (nominal) high.
The Canary is shrieking “inflation” as loud as it can.
How do we protect ourselves from the Federal Reserve’s pathological obsession with inflating us to death? Again, it’s gold (and silver).
Manhattan real estate: gold versus the U.S. dollar
Priced in the same U.S. dollar that the Federal Reserve is relentlessly driving to zero, Manhattan residential real estate prices have increased by over 11,000 percent in roughly the last century (view historic Manhattan real estate prices here
But priced in gold (over the same period of time) Manhattan real estate has only increased in price by 25 percent.
25 percent versus 11,000 percent.
Gold itself has appreciated by 10,000% versus the dollar in the last century, from $20 per ounce in 1920 to ~$2,000 per ounce in 2020.
Gold versus the U.S. dollar. Money versus currency. Wealth security versus wealth annihilation.
Jerome Powell has now had his Emperor’s New Clothes
moment in history. People are standing up to say “the Fed is naked”. A naked liar.
The Federal Reserve is completely morally and intellectually bankrupt.
It is committed to doing more and more and more of what is destroying our economies and annihilating the Peoples’ wealth. And lying about it the entire time.
Gold and silver are not “investment options”. They are our monetary salvation to protect us from psychopathic central bankers like Jerome Powell.