by Bill White
If unemployment is scary… then brace yourself for its evil twin: inflation.
Because if you’ve been doubting the propaganda that says your dollars are only losing 1.5% in value each year then you’ve been right all along!
It doesn’t take a rocket scientist to realize something fishy is going on. Just look at your bills and receipts and you’ll realize inflation simply cannot be that low.
A 1.5% inflation rate would make us as stable as Switzerland or Germany. Medical costs would be steady, food prices wouldn’t go through the roof, and the utilities would cost pretty much what they used to.
The inflation rate is calculated by looking at changes in the Consumer Price Index which is a virtual “basket” of goods and services people buy.
Now here’s the thing: by manipulating what products and services should be in this basket you manipulate the perceived inflation rate.
So if the government decides to change the Consumer Price Index to emphasize consumption of electronics like computers and TVs, inflation rate will be super low. Yet the moment you add more things like gasoline…utilities… healthcare and education to the basket… that’s when the horrifying picture starts to unfold.
And here’s the thing: the government has already manipulated the way to calculate inflation rate numerous times throughout the past 2 decades…each time the purpose is to make inflation look smaller.
That’s why, even though a big chunk of your earnings goes on fuel and food… these items are precisely what’s missing when they calculate the inflation rate.
For example, price of fuel like gasoline rose from $1.86 to $3.30 in the last 5 years. But according to the Government, you don’t drive.
It gets worse: In 2008 right before the market crashed, the price of a Big Mac was $3.2.
But in 2014, with the economy in supposedly such a better shape than 6 years ago, the Big Mac has shot up to $4.62!
Bottom line is, if you use the way the government used to calculate inflation before 1980….the real inflation rate right now would actually be a jaw-dropping 11%.
And things are getting desperate. For instance, food inflation is so bad, that food companies are forced to hide it in smaller packaging while keeping the prices intact.
For example, peanut butter companies no longer have flat bottoms on their jars…instead the bottom is concave…so that there’s less peanut butter in your jar.
Cereal manufacturers like Kellogg’s use the same sized box so that the packaging looks the same, except the amount inside has gone down. For example, Kellogg’s Apple Jack has shrank 15%.
And because of this ‘hidden’ inflation, the value of our money is getting eroded everyday. Every dollar you earn gets you less and less. And you are working more for less pay.
Washington bureaucrats are manipulating all these numbers and lying to us because they are desperately aware that they have to hide the reality…otherwise every patriotic American will revolt against them, just like they fought trying to phase out Obamacare.
And as scary as it seems what is unfolding right now is an exact re-enactment of what happened to the Soviet Union in the 1980s which operated under massive public deception. Factory managers would send false production reports, showing more than they had done.
Outstanding results were reported by all industries, despite the fact that the Soviet Union produced some of the worst consumer goods in the world. And when they collapsed, it caught everyone by surprise…because on paper the economy was booming.
** It’s exactly what’s happening right now in the US. Everywhere you look, productivity is reported as “up”, unemployment as “down”, manufacturing as “strong”, while American wages are “increasing”. Yet none of it is true.**