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‘Zero Inflation’ in U.S. = Hyperinflation Warning?

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It’s impossible to cover developments in the global economy, and the reporting of those developments without feeling a lot like Alice in Wonderland – surrounded by legions of “Mad Hatters”. This is especially true when covering the realm of anti-logic known as the U.S. economy.

We’re told that the U.S. economy has been experiencing an “economic recovery” for the past 3+ years – led by manufacturing growth – while its energy consumption has plummeted so fast that the world’s great Energy Glutton is now a “net-energy exporter.”

We watch reports of U.S. home-builders starting construction on roughly twice as many homes as they sell, month after month, year after year – and then the media Mad Hatters tell us that the inventories of unsold new homes have been plummeting downward all this time.

We’re told that U.S. Treasuries should be fetching (by far) their highest prices in history – even though the U.S. is hopelessly bankrupt when using the same accounting standards it requires of its own corporations. We’re told by one of the more esteemed Mad Hatters that Treasuries prices and Treasuries supply should be simultaneously increasing exponentially.

So it comes as little surprise to this “Alice in Wonderland” scribe to see Asian governments meeting to discuss a “food-price shock” while simultaneously the U.S. government reports “zero inflation” in its own economy.

Here readers must understand that the U.S. propaganda machine does not deliberately produce utterly laughable propaganda, which no adult with a functioning brain could possibly swallow. The whole point of producing propaganda is to make it plausible, as the more absurd the lies, the sooner that a propaganda machine permanently destroys its own credibility.

Thus the serial lies coming from the U.S. government’s statisticians have not become rapidly more ridiculous simply because these Liars are bored – and looking to generate a few, cheap laughs. Rather, the propaganda becomes more and more absurd because it is rapidly becoming harder to stretch these statistical lies so that they report anything other than “U.S. economic collapse.”

 

This is the context for readers as we analyze two absolutely contradictory news items: a pending “food-price crisis” in Asia, and (supposedly) “zero inflation” in the U.S. Of course no one believes that inflation in the U.S. is currently “zero” at the moment; not the most-deluded of the Sheep…unless those Sheep don’t eat food, and thus never set foot in a supermarket.

Food prices are increasing at a double-digit rate in the U.S. (and across the West) just as they are in Asia. In our global economy, obviously there is only one Market for agricultural products. Thus the real question instantly becomes: why would the U.S. propaganda machine produce an especially absurd lie on inflation which it knows that no one will believe?

This is a question which presents no obvious answer. After mulling it over carefully, I’ve been able to arrive at only one rational premise: the U.S. government (at the urging of its Banker Masters) has dramatically ratcheted-up the degree of its lying about inflation because it (now) knows that it is going to have to hide much, much, much more inflation in the near future.

This much has already been clearly telegraphed. As the rapid deterioration of Western economies in general, and the U.S. economy in particular intensifies; the banking crime syndicate pretending to be our Economic Nanny is being pressed into action – as the Sheep bleat “do something!” As iconic trader Jim Rogers reminded us all only a few weeks ago, these bankers “only know one thing” (printing money) “and that’s what [they are] going to do.”

Thus we know that much more money-printing is on the way, and we know that even the inflation-loving bankers are extremely worried about the effect of all this new paper on all their old paper – since they have been spewing the same (new) absurd lie, en masse.

After telling us that the entire purpose of “QE1” was to produce inflation (and congratulating themselves on their success); now the very same bankers, about to do the very same thing, are asserting that “QE3” might not produce any inflation at all. This is despite the fact that the greatest Mad Hatter of them all, B.S. Bernanke, has based his entire career on the premise that large-scale money-printing must always cause significant inflation.

Suddenly, out of a seeming morass of absurd lies a clear script emerges. QE 3 is a done deal. Our economies have begun another death-spiral. And as with all Ponzi-schemes (like the Western financial system); it requires ever-increasing amounts of fresh paper to delay the inevitable implosion. Thus we can expect one of two things: either QE3 will be much more expansive than QE1 (and therefore extremely inflationary); or, it will be totally inadequate – and all of the banksters’ Ponzi-schemes (including all Western bond markets) will implode.

Because the banking cabal fears that fate even more than hyperinflation (which also means their own destruction), it’s clear that our Banker Masters have made their choice. They are risking (if not inevitably committing us to) hyperinflation, simply to try to squeeze another couple of years out of their Empire of Fraud – and so to prepare the Sheep for that scenario they are ramping-up their lies about inflation in advance.

Meanwhile, halfway around the world, where the Western propaganda-megaphone has a much less pervasive impact; Asian governments brace themselves for this high-inflation Hell. When they hear about half the U.S. corn crop burning in the Sun, and the other half being burned in the world’s most-inefficient bio-fuel program; they don’t see “zero inflation.”

Indeed, with the same Western propaganda machine having been shrieking warnings for many weeks about how the U.S.’s worst-ever heatwave and drought was going to devastate corn production, the one thing we know could not be happening is for inflation to take a sudden and dramatic plunge. But note that the propaganda machine was not content to stop there. It also reported/claimed that “the CPI [Consumer Price Index] rose 1.4% over the year through July, the smallest 12-month change since late 2010.”

So the U.S. government (and media parrots) are not merely telling us that the “zero inflation” reported for July is some one-month anomaly. It’s rewriting history and telling us that there has been near-zero inflation in the U.S. for an entire year now – while John Williams of Shadowstats.com reports 10+% inflation, and anyone who eats knows that consumer prices are soaring.

Note that this is far from the only recent example of the Revisionists back-spacing through History in order to produce their own made-for-propaganda version of events. As I just finished writing in my last commentary; the Revisionists are also telling us that Iceland’s policy of cutting the bankers off of their multi-trillion welfare (and the genuine economic recovery it produced) was just a “fluke”.

Through this Revisionism, we can deduce yet one more piece of the New Script being prepared for us. When the banking cabal unleashes its next, huge wave of money-printing, every dollar of that new paper will not go into the hands of the ordinary (deserving) people who have been serially-raped by the banksters’ relentless fraud. Instead, every penny will be funneled into the vaults of these psychopathic gamblers (in the form of more Bank Welfare); then, in turn, every penny of QE3 not needed to prop-up the bond markets themselves will be directed into even more bankster gambling in their $1.5 quadrillion derivatives casino – further starving the global economy of badly needed capital.

The analogy is a simple one. In a world full of starving people; a mountain of food is about to be handed to a small group of the world’s most-obese gluttons…sorry, make that Criminal Gluttons. And the end-result will very likely be hyperinflation.

 

 

 

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Jeff Nielson
...
written by Jeff Nielson, August 21, 2012
If memory serves me, a 10% inflation rate means buying buyer(or debt payable by government) is halved every 7 years or so. If QE3 is much larger, that would be and indicator our politicians are trying to approach 5 years for the debt to be cut in half. In essense, around the end of the next presidents term, prices of food, etc could almost double what they are currently.
Zero inflation My fannie! What is in those politicians pipes?


Paxjds, I believe your calculations are as sound as your reasoning...but perhaps a tad optimistic (lol).

If my own grasp of the economic dynamics involved is close to being correct (no guarantees there), then I would expect the inflationary effect from the next round of money-printing to roughly TRIPLE -- or else do little do pull these Kamikaze Economies out of their power-dives... smilies/wink.gif
paxjds1
...
written by J. David Sites, August 21, 2012
If memory serves me, a 10% inflation rate means buying buyer(or debt payable by government) is halved every 7 years or so. If QE3 is much larger, that would be and indicator our politicians are trying to approach 5 years for the debt to be cut in half. In essense, around the end of the next presidents term, prices of food, etc could almost double what they are currently.
Zero inflation My fannie! What is in those politicians pipes?
Jeff Nielson
...
written by Jeff Nielson, August 21, 2012
...when do you think crazy man Bernanke and his group of idiots will announce QE#3
Will it be the next couple of weeks or do you think they will wait till after the election.
With the markets all up i think they need to wait at least until the markets pull back some .
Like to hear your opinion on when you think they will announce more QE


That's such a hard question Rdisrael.

To be perfectly honest, I didn't think they could delay things this long. The amount of time they can continue to stall is a function of two dynamics: how long they can keep a MAJORITY of the Sheep mollified; and secondly how long they DARE stall before it's impossible to pull out of the nose-dive.
rdisrael
...
written by robert, August 20, 2012
Jeff,
excellent article ,could not agree with you more.That being said when do you think crazy man Bernanke and his group of idiots will announce QE#3
Will it be the next couple of weeks or do you think they will wait till after the election.
With the markets all up i think they need to wait at least until the markets pull back some .
Like to hear your opinion on when you think they will announce more QE

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