< HOME  Sunday, January 01, 2006

LIAR, LIAR, economy on FIRE

Article after article declares that inflation has been kept in check between 2-3% annually. Shit, they even characterized Greenspan as an inflation-slayer!

But here I am, paying almost twice as much for a gallon of milk this year as I did last year, not to mention all other food groups. And of course, I'm paying a large chunk of my income (debt) for the damn gasoline I put in my car, not to mention subway fares, despite the claims that energy prices have relaxed. What gives?!!

No doubt, the mainstream media often LIES. I could go over examples ad nauseum. But more often than not, they merely massage the truth. Apparently, this is why those SOBs have been singing songs of victory over inflation:
Recent inflation data shows wholesale prices, excluding food and energy costs, have risen at a mere 2.6 percent for the last 12 months, while core consumer prices, which also exclude such volatile components, rose only 2.1 percent over the same period.
What on earth is left of "core consumer prices" after you've "excluded food and energy costs?!!" This sounds more like an inflation index for investors not consumers!

All this says is that within the group of products where consumer demand is elastic, prices are fairly stable. You're damn right they are! Consumers would stop buying in a heartbeat if they weren't! But, for goods that consumers have no choice but to buy, consumers are being screwed, royally!

In all fairness, I have to give credit to the author of this particular AP report, first for revealing the massaging technique her cohorts use to mask the truth. But also, for mentioning that bloggers like Jeff Matthews, who insists that his haircuts have gone from $17 to $22, are exposing the lies as they're told.

Caught again, lousy liars! If you're going to lie about something, pick a subject that's not as obvious as this. After all, we are the consumers!


At Sunday, January 01, 2006, Anonymous Anonymous said...

protect your wealth.

buy gold and silver now!!!!!

At Sunday, January 01, 2006, Blogger jc said...

hey, q

you should prob'ly have a look at this:


At Sunday, January 01, 2006, Anonymous Anonymous said...

No inflation -- RIGHT, if you let others think for you.

One need look no further than the quietly announced (NOV-05) plan to commence hiding US Fed M3 (economic mainstay started with Day 1 of the US Fed) from public view commencing in early 2006.

Must be that there are really bad thing on the horizon to cover up!

At Sunday, January 01, 2006, Anonymous Anonymous said...

Protect your wealth. Invest in weapons manufacturers, oil companies and the big pharmaceuticals - especially those that
Ronald DumsFAILED is connected to. They are guarenteed to make huge gains over the coming years.

At Sunday, January 01, 2006, Anonymous Anonymous said...

Larry Elliot, chief economic editor of The Guardian emailled me and admitted that the US inflation figures were very much massaged. But he is not going to say that in print. I also told him I was 50% gold 50% cash and he said he could not think of a better investment strategy right now (this was September 2005)


At Sunday, January 01, 2006, Anonymous Anonymous said...

You're absolutely right. If you add housing to energy and food, the situation gets even worse. But hey, who needs a roof above the head, food in the fridge and gas in the tank......

At Sunday, January 01, 2006, Anonymous Anonymous said...

Inflation is running at about 8% per year. The Government is using the lower figures in order to keep the Cost of Living Allowences low. These C.O.L.A's affect everyone receiving a government check.

So these people are effectively having their checks cut 5% per year. If they used real inflation figures the government would be in receivership.

At Sunday, January 01, 2006, Anonymous mw said...

Another artifice in the inflation equation is the gasoline vs. diesel price ratio, which is opposite all logic and has been throughout 2005. Diesel, which affects the price of everything brought by trucks (i.e. everything)is being sold at scalper prices to lessen the impact on oil companies and allow them to sell gasoline cheaper, which keeps the natives from getting as restless.

At Sunday, January 01, 2006, Anonymous Anonymous said...

I am surprised no one has mentioned health care costs!

At Sunday, January 01, 2006, Blogger qrswave said...

I wish everyone would come up with a pseudonym and spare me the anonymous numbering.

but, enough bitching. Happy New Year, everyone! and thanks for stopping by!

Anonymous #1 - gold and silver are freakin' expensive, now and they do nothing but sit there!

jc - thanks for the link! There is much to be learned from the last sentence of that article. That an entire nation must rely on the generosity of a bank for a happy new year says it all.

Anonymous #2 - absolutely! hiding M3 data is bad news!

Anonymous #3 - I hope you're being sarcastic!

Anonymous #4 -hey simon! great blog you got there! I do not endorse gold as a replacement to the current system. But, gold will always remain a commodity whether or not our national currency is pegged to it. So, I don't think that 50% gold, 50% cash is a bad strategy.

Working your capital is ideal, however. But, keep your business debt free and lean. Only enough operating cash to keep business flowing.

Anonymous #5 - after doing this for so long I forget to include the obvious; thanks for reminding me of housing!

Anonymous #6 - thanks for pointing out the COLAs, something they threw into the NYC transit deal the other day to placate the union. What crap!

But, receivership is not a bad idea, at all. It's a shame that all the creditors are fully secured! Nevertheless, under the current bankruptcy law, remaining debts would be discharged within a maximum number of years for a fresh start!

So, YEAH! Bankruptcy would be great!

mw - hey, thanks for the tip on diesel. There is NO LOGIC to this madness; it's anything goes as long as it's in the money master's interest.

Finally, Anonymous #7 - but of course! How could we forget healthcare? Thanks a lot!

At Sunday, January 01, 2006, Anonymous Anonymous said...

I think you've worked it out! The right exploited inflation as an issue for ordinary people in the 1970s but after they took power under Reagan they made efforts to ensure that inflation could never be used as a political weapon against THEM. So over time they've crafted an inflation index that has less and less to do with the experience of ordinary people.

Most every U.S. government indicator has been fixed so as to never produce unflattering results. The same is true now of the U.K., Australia and other countries that have embraced neoliberal policies. They don't want people to wake up the fact that these policies have been bad for very nearly everyone.

Social Democracy Now

At Sunday, January 01, 2006, Anonymous Anonymous said...

Why is your blog grey on grey? Do you realize that all that can be read are your links?

At Monday, January 02, 2006, Blogger vper1 said...

anon: there are some issues with Safari, in the meantime it's all about Firefox

At Monday, January 02, 2006, Anonymous Anonymous said...


My apologies on not regisdtering. Hardly ever on this site but this post caught my eye. In regards to your statement "Anonymous #1 - gold and silver are freakin' expensive, now and they do nothing but sit there!" You seem to be mistaken. Gold and silver and platinum are the best incestments you can make. They will always have
value because they are uncommon and have many consumer end uses(example, I recently plugged in a pair of headphones into my computer jack with a gold plated receptacle). Therefore, precious metals are wise stable investments that will not decrease in relative value easily.

As for the general post, "what's up with this?" is generally simple. Food prices rise due to increased government subsidies and the slow but stable shrinking of agricultural workforces in the U.S. Gasoline prices have risen due to flat out speculation. Somebody predicts oil prices might rise(possibly due to jsut a few oil fields being just down) in a certain area, and investors buy up the rights to the future oil so as to profit. This buying trend increases the cost of oil due to higher demand with constant supply. As the price goes up due to speculation, people begin to predict rising prices even more, increasing the speculation rates. Oil prices will return to normal eventually, but not until after all the speculators have sold off their shares. After all, gas should really only cost around 1.80 at this point. However speculators are nmot eager to sell for that low, considering they would lose their money invested. Therefore, they sell high, and as soon as the speculators have sold their oil prices will resume.

And for the real estate market, it is a classic boom and bust cycle. Check the home prices over the last 40 years, they go up, peak, and then quickly fall. The key is simply not to try and speculate a boom and bust cycle. If I sold my house in southern california right now, it would fetch somewhere from 750-800k. I bought it for 380k in june of 2002. That roughly equates to 100,000 appreciation a year. Now I guaruntee, in 2-3 years it will be worth far less than it is now. However I'm not speculating and selling, because I still have to have a place to live.

At Monday, January 02, 2006, Anonymous dawnal said...

Perhaps this broadens the discussion unduly, but Mr. King's comments are so right on that I felt them worthwhile to offer on this forum:

The Rude Awakening published a transcript of a discussion about the trade deficit. Several gurus commented. I especially appreciated the following:

A Lengthy P.S....
By Byron King

"Amigos, none of the aspects of our virtuous trade deficit
could have been maintained without the U.S. having the
luxury of an 'elastic currency,' courtesy of the Greenspan
Fed. In a hard-money, gold-standard world, or even in an
elastic monetary world in which the Fed resisted the
temptation to accommodate the fiscal fads and fixations of
the elected parties of our government, the con would have
been called long ago. Are the continuing 'profits' really
meaningful in an economy in which deficit-spending
continues to increase the nominal money supply far in
excess of any accompanying growth in underlying economic
activity? Sure, people have more cash in their pockets, but
it buys less every year. Of course, the U.S. can afford to
'de-capitalize' itself overseas, every year to the tune of
$600 billion or $700 billion. Just increase the money
supply, lower interest rates, and watch the nominal
increase in 'value' (ahem....) of the U.S. housing base and
total capital stock. Son-of-a-gun, we be rich!

"It is like a perpetually-winning lottery ticket. Whence
comes this national blessing? How is it that the U.S. can
get something for nothing, year after year? Manmade money,
perhaps? We have discussed the epic year of revolution,
1913. (That's the year the Federal Reserve emerged from the
legislative womb). And we have discussed the other epic
year of gold confiscation, 1933. But then, there is the
year of the 'dollar-as-world-reserve,' 1944, and the events
at Bretton Woods. And there is the year-of-take-it-or-
leave-it-or-shove-it, 1971.

"As WWII was beginning its final chapters in 1944, the
moneybags got together at Bretton Woods, New Hampshire to
figure it all out. The U.S. guy said, 'Hey, we have an
aircraft industry that can produce 50,000 planes per year.
We are building fleets of B-29s that can flatten cities. Do
any of you guys have an aircraft industry that can produce
50,000 planes per year? Are any of you guys building fleets
of B-29s that can flatten cities? No? OK, then. We agree.
The dollar will be the world's reserve currency.' Oh wait a
minute. The minutes of the meetings don't say anything
about 50,000 planes, and fleets of B-29s flattening cities.
Oh well, somebody must have said something to somebody
else, and they all agreed to use the U.S. dollar as the
world's reserve currency. Sweet. Works well if you are the

"And then there was August 15, 1971. Nixon went on TV and
said, 'Hey, we have 25,000 nuclear weapons, and the
missiles and airplanes to deliver them. Do any of you guys
have 25,000 nuclear weapons, and the missiles and airplanes
to deliver them? No? OK, then. We agree. The U.S. is
closing the gold window. We will no longer redeem our US
dollars in gold.' Oh wait a minute. The transcript of
Nixon's speech does not say anything about 25,000 nuclear
weapons, or the missiles and airplanes to deliver them. Oh
well. Nixon said something about the 'monetary' situation.
And he said something else about some sort of thing that
had to do with the U.S. dollar and gold. It sure sounded
good. And everybody in the world agreed that it was O.K.
for the U.S. to go off the gold standard. And everybody
still agreed to use the U.S. dollar as the world's reserve
currency. Sweet. Works well if you are the U.S.

"Eventually, though, the future is now. If not today, then
tomorrow. If not tomorrow, then the day after. Eventually,
everyone and everything sees its last sunset."

At Monday, January 02, 2006, Anonymous Anonymous said...

If gold is a bad investment why would the folks who have operated the "gold exchange window" in London for more than a century close their trading window in mid December and stop selling gold altogether? Some say these same folks already own 70% of the world's gold so what effect will it have to just remove that 70% from the world exchange?

If the dollar is an elastic currency supported by requiring all oil trading be completed in US dollars; what will be the effect of opening an oil bourse in Iran during spring of 2006 which will accept currencies other than the dollar for payments for oil?

And for your final exam what was the last country to attempt to trade oil for anything other than US dollars? (that's right Iraq)

And I wonder what others are doing to prepare for the day of equalization? No really I wonder what can be done to prepare?

At Tuesday, January 03, 2006, Blogger qrswave said...

Thanks for your comments!

Anonymous #8, Yes, all the indices are manipulated to maintain the status quo. BTW, you've got a great blog!

Anonymous #9, sorry about the technical issues. As vper1 mentioned, it's some incompatibilty with safari.

Anonymous #10, thanks for sharing your thoughts. I think I need to clarify that I am not against gold and silver as ordinary investments and of course they are useful commodities. I only object to their use as a national currency.

Although I concede it is somewhat more stable than fiat currency, the real problem is fractional reserve banking and interest and they work their evil whether currency is fiat or coin.

I think you put your finger on one of the biggest problem in our economy and that is speculation, which is nothing but a sophisticated name for gambling.

You overlook, however, another important problem in our economy and that is monopoly. Once a monopoly is in place, especially one of the money supply, a free market system is no longer in play.

Dawnal, thanks for a very informative comment! Great chronicle of our monetary system. But, don’t forget that a national bank was in place long before the Federal Reserve Act and was opposed by both Jefferson and Jackson, who escaped assassination by providence.

Anonymous #11, You make some very good points. The current monopoly on gold supplies is precisely why insist that it should be avoided as a national currency at all costs. It would replace on private monopoly of our money supply with another.

As for oil, the dollar, iraq and iran, it was discussed in an earlier post.

And finally, what can we do to prepare? This, this, or a combination of both.

At Monday, February 06, 2006, Blogger Masher1 said...

Someone American had better find out how long the debt has been on this floating at or above the ceiling thing because i think after looking at it that the gov. is TOTALY messing with the US Debt figures. Nothing is adding up and i'm not that bad at this level of mathamatics. so screw it you EGGHEAD types get on this bogus data that the fed spues forth.

At Monday, February 06, 2006, Blogger Masher1 said...

I Make the debt 7T higher than them BTW

At Friday, June 09, 2006, Anonymous Anonymous said...

ok guys coffee break is over stick your heads back in the sand because you are powerless to stop it.if our fiat paper money is worthless which I believe it is why do the people with all the gold and silver want to sell the gold and silver to us using the usless paper money. mgiambrone


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