Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 2% on the Week
By: Chris Mullen, Gold Seeker Report

5 reasons why commodities are the place to be in 2018
By: Richard (Rick) Mills

Loan Shark Nation: Forcing Our Kids To Choose Between Student Loans And Everything Else
By: John Rubino

Why the Debt Ceiling Means Nothing, Yet Everything
By: Nathan McDonald

COT Gold, Silver and US Dollar Index Report - February 16, 2018
By: GoldSeek.com

GDX Weathers Stock Selloff
By: Adam Hamilton, CPA

5 Things to Know About the Chinese New Year
By: U.S. Global Investors

The Dollar and Gold for 2018
By: Gary Christenson

Is The Fed Back To “Quantitative Easing?”
By: Dave Kranzler

GoldSeek Radio Nugget: Arch Crawford and Chris Waltzek
By: radio.GoldSeek.com

 
Search

GoldSeek Web

 
Fed Officials Frantically Play Dumb to the Coming Inflationary Storm


 -- Published: Thursday, 12 October 2017 | Print  | Disqus 

By Graham Summers

 

The Fed is baffled as to why inflation remains so low.

It’s a clever move, given that the reason inflation is believed to be “low” is because the Fed has been purposefully understating inflation for years.

Perhaps the biggest fraud ever committed in financial history concerns the understating of inflation in the Unites States post-1971. 

 

By the Fed’s own admission, the US Dollar has lost some 84% of its purchasing power since 1971, and yet the Fed has routinely claimed that inflation has been “subdued” or “under control” throughout that time period (with the brief exception of the inflationary spikes of the ‘70s).

 

http://www.goldseek.com/news/2017/10-12gs/image002.jpg

 

With this level of currency depreciation, incomes would have to rise exponentially to compensate for Americans’ higher cost of living. They haven’t. As a result of this, Americans have increasingly relied on two parents working instead of one, while supplementing their incomes with credit cards and other debt instruments.

 

The below chart is possibly the single best argument against any claim by the Fed or others than the official inflation numbers are accurate. If income growth was indeed greater than the rise in inflation post-1971 as the below chart suggests, most families would currently have only one parent working and STILL be saving money. Instead, today the norm is for both parents to work and the average US household to be sitting on over $137,000 in debt.

 

Put simply, the official inflation numbers are garbage.

 

http://www.goldseek.com/news/2017/10-12gs/image004.jpg

 

The Fed purposely wants it this way because understating inflation allows the Fed to

 

1)   Overstate GDP growth

 

And…

 

2)   Paper over the fact that incomes have been on the decline relative to cost of living since the early ‘70s.

 

So don’t let the Fed fool you with its “gosh, where is the inflation?!? We don’t understand!” act. The Fed KNOWS inflation is rising rapidly. Heck, the $USD has already dropped 10% in the last 12 months that’s DESPITE the Fed hiking rates THREE TIMES.

Put simply, BIG INFLATION is the THE BIG MONEY trend today. And smart investors will use it to generate literal fortunes.

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 


| Digg This Article
 -- Published: Thursday, 12 October 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.