Tag Archives: inflation

The Disaster of Inflation–For the Bottom 95%

Central banks are obsessed with boosting inflation, but the “why inflation is good” arguments make no sense for households being ravaged by inflation. The basic argument is that inflation makes it easier for debtors to service their debts. But this … Continue reading

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INFLATION ABOUT TO EXPLODE HIGHER

“Those who are capable of tyranny are capable of perjury to sustain it.” ― Lysander Spooner We all know the BLS artificially suppresses the CPI through bullshit substitution adjustments, quality adjustments, and various other incomprehensible hedonic adjustments made by government … Continue reading

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Are The ‘Invisible Americans’ the Key Players in This Election?

For the bottom 90% of American households, the “prosperity” of the “recovery” since 2009 is a bright shining lie. The phrase is from a history of the Vietnam War, A Bright Shining Lie: John Paul Vann and America in Vietnam. … Continue reading

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Could Inflation Break the Back of the Status Quo?

That inflation and interest rates will remain near-zero for a generation is accepted as “obvious” by virtually the entire mainstream media. The reasons for this are equally “obvious”: central banks have the power to suppress interest rates indefinitely by creating … Continue reading

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What Happens When Rampant Asset Inflation Ends?

Yesterday I explained why Revealing the Real Rate of Inflation Would Crash the System. If asset inflation ceases, the net result would be the same: systemic collapse. Why is this so? In effect, central banks and states have masked the … Continue reading

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Inflation Hidden in Plain Sight

Yesterday, I showed how Consumer Prices Have Soared 160% Since 2001 for everything from burritos to healthcare. This enormous loss of purchasing power is not reflected in the official measure of inflation, which claims inflation is subdued (1% or so … Continue reading

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One Chart Says It All

Sometimes one chart captures the fundamental reality of the economy: for example, this chart of money velocity and the civilian-population ratio. (thank you, Joseph Y. for posting it on my Facebook feed.) When the blue line is up, more of … Continue reading

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The Future of Money

To say that the future of money is blockchain-based crypto-currencies and payment platforms is to state the obvious nowadays. If this wasn’t the case, then why are Goldman Sachs et al. (i.e. the global too big to fail banks) rushing … Continue reading

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Recipe for Collapse: Rising Military and Social Welfare Spending

Whatever you think of former Fed chair Alan Greenspan, he is one of the few public voices identifying runaway entitlement costs as a structural threat to the economy and nation. We can summarize Greenspan’s comments very succinctly:there is no free … Continue reading

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2016 Theme #3: The Rise of Independent (non-state) Crypto-Currencies

A number of systemic, structural forces are intersecting in 2016. One is the rise of non-state, non-central-bank-issued crypto-currencies. We all know money is created and distributed by governments and central banks. The reason is simple: control the money and you … Continue reading

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OPINION: Why Every American Should Vote for Bernie Sanders

Eric Zuesse, commenting about Thad Beversdorf’s article about Sanders’s record On August 19th, the brilliant Thad Beversdorf opened by posting a five-minute-long 2003 video of Vermont’s then-congressman Bernie Sanders, who was interrogating the deified Federal Reserve Chairman Alan Greenspan, and … Continue reading

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I Sure Am Glad There’s No Inflation

We are constantly bombarded with two messages about inflation: 1. Inflation is near-zero 2. This worries the Federal Reserve terribly, because stable prices are deflationary and deflation is (for reasons that are never explained) like the financial Black Plague that will … Continue reading

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Perhaps This Is Obama’s Grand Strategy

Eric Zuesse Washingtonsblog’s anonymous founder and principal commentator is one of the most deeply knowledgeable writers on current events, and on July 19th he headlined “Governments Worldwide Will Crash the First Week of October … According to 2 Financial Forecasters.” He noted that both Martin … Continue reading

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Stocks and Bonds Are Due for a Generational Crash of 75%

From the point of view of history, a reversion to generational lows is inevitable, and a valuation level around 50% of GDP for stocks is a fair target. If we look back to 1981 valuations of stocks and bonds as … Continue reading

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The Achilles Heel of the Global Status Quo: Deflation

Rather than being the Monster Under the Bed in central bank nightmares, deflation is the natural result of a competitive economy experiencing productivity gains. That the global Status Quo is terrified of deflation is the background of every policy decision … Continue reading

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Central Banks’ 2% Plan to Impoverish You

The 2% target is low enough that the household frogs in the kettle of hot water never realize they’re being boiled alive because the increase is so gradual. A comment by correspondent David C. suggested the importance of demonstrating the … Continue reading

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Central Banks Have Failed Because They Can’t Push Wages Higher

You can print all the money you want, but it will never boost wages to keep up with prices. Central banks have been pursuing two goals for the past six years: ignite inflation and an expansion of debt that will … Continue reading

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Central Banks Create Deflation, Not Inflation

Financial and risk bubbles don’t pop in a vacuum–all the phantom collateral constructed with mal-invested free money for financiers will also implode. If there’s one absolute truism we hear again and again, it’s that central banks are desperately trying to create inflation. … Continue reading

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Japan’s Monetary Pearl Harbor

Trying to “fix” a sclerotic, inefficient state-cartel economy by boosting inflation–the ultimate goal of Japan’s Monetary Pearl Harbor– is a self-liquidating path to destruction. The Bank of Japan’s surprise expansion of financial stimulus strikes me as the monetary equivalent of … Continue reading

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Why We’re Poorer: Inflation and Deflation Are Now Globalized

We’re being hit with a double-whammy: Wages are under deflationary pressure, and almost everything else is exposed to inflationary pressure. As correspondent Mark G. observed in Globalization = Permanent Instability, it’s impossible to understand inflation and deflation now except in a … Continue reading

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