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Is The Federal Reserve Lying About Inflation?

In this blog we are going to look into the Federal Reserve Bank. Are they lying about Inflation? In other words are statements like the following lies? “Inflation is transitory,” “Covid related supply chain issues,” “If inflation runs hot the Fed will use our tools to curb inflation.”

These statements have been made by The Federal Reserve Chairman. But when the Fed makes a statement that doesn’t end up being true, do they acknowledge it? In 2021 the United States experienced record-breaking inflation numbers and 2022 doesn’t look any better.

The Fed’s Tools for handling Inflation.

Jerome Powell has said the Fed will use its tools to fight inflation but what tool do they really have? The most obvious tool is setting interest rates.

  1. Interest Rates. 

Here’s the deal, in 1980 Paul Volcker raised interest rates to 20% in 1980. This led to end the era of inflation of the 1970s. But the national debt in 1980 was 908 billion in 1980. We have -0- % interest rates of today and $28 Trillion in debt. And because with the Federal reserve just mentioning they will do a rate hike in March 2022 the stock market gets jumpy. Stocks fell as much as 20% Althea mention of interest rate hikes.

Real Interest Rates?

But if the Federal Reserve raises interest rates that means the Federal Government has to pay more money in interest to its creditors. The payment on the interest of the debt becomes unsustainable. Could the Federal Reserve raise interest rates to 20% now? In order for Federal Reserves Rate hikes to be effective, they have to be real rates above inflation.

For this reason, If inflation is 7% and interest rates go up to 5% your real rate of return is a negative -2% return because of inflation! Since, in 1980 the only way they stopped inflation was to get out in front of it. By the way, in 1970 $1 would purchase $7.19 in goods and services compared to today’s dollars.

  1. Quantitative Tightening. 

If QE was meant to stimulate economic growth, logically QT or quantitative tightening would be used to slow economic growth. A lie the Fed has been saying is that inflation is economic growth. Inflation is not economic growth, it is an increase of the money supply causing price inflation, with too many dollars chasing too few goods and services. Most experts agree that no amount of quantitative tightening will stop inflation.

  1. Public Perception. 

Now we come to the real tool of the Federal Reserve Chairman and that is public perception. Just as you can’t go to a crowded movie theater and yell “FIRE!” the Federal Reserve Bank cannot tell the truth about inflation. Because the Stock Market would go crazy and crash.

And so, by telling the public what it wants to hear it reacts in return by investing at a normal rate by purchasing things at a normal level, slowing the effects of inflation on the economy. Basically they have one tool and that is talk.

Who Benefits from the Fed Lying About inflation?

Because they can all keep their jobs, the Fed benefits. Politicians benefit because they can keep their jobs, and keep stuffing their pockets from special interest groups and insider trading.

With Inflation Comes Greater GDP.

It’s easy to see a huge increase in the GDP with inflation. The only problem is these new dollars don’t buy as much. With inflation rising there can be an increase of tax dollars to pay on the interest of the National Debt. Inflation could arguably be necessary to keep the government of The USA solvent.

It would benefit The Federal Reserve To Lie.

If the Federal Reserve Bank knew that they could not and would not fight inflation, what benefit would they have to be honest about it? Their only real tool in fighting inflation is lying about it. This is why they called it transitory. And why they say that they will use their tools to fight inflation if it gets bad. But they can’t fight inflation without tanking the Stock Market. And consequently causing the Federal Government to become insolvent with the interest on the debt.

The Poor Get Poorer And The Rich Get Richer.

In the view of this fact, this is the biggest wealth transfer in modern history. Mainly because we are seeing the poor lose all their purchasing power. While assets like Stocks, Commodities, Real Estate have seen monumental gains. But poor people spend all their money because they are consumers. And so the wealthy buy assets and invest the majority of their money, the poor spend every dollar they have and borrow .20 more.

If You Can’t Beat Them, Join Them.

Moreover, the Federal Reserve and The Government will never tell the truth about inflation and they will promise you that it’s not that bad, it’s getting better. This means, they are just trying to keep people from revolting in the streets! You must take action s into your own hands. Create your own economy by making Trades and Investments that will grow and outperform inflation.

How They Tracked Inflation in the 1970s vs today.

Since the Consumer Price Index keeps being revised and changed to minimize the effects of inflation and negate the evidence of inflation. Think about it, is the cost of energy and food worth measuring in terms of inflation? It’s not even measured at the same level as it was in 1970.

Buy assets!

In conclusion, investing assets that grow with inflation is the only way to say ahead of the game! Read my blogpost, Black Gold, Investing in hated energy sectors. Read More Here…

Webull

The Coming Greater Depression


Firstly, Nate Plissken delves into the causes of the U.S. Dollar Currency Crisis. Secondly, citing experts in business and economics, he pulls back the curtain on The Fed.

The Federal Reserve System.

Moreover, The Federal Reserve System, which Robert Kiyosaki called: “A communist organization!”
How the Fed in full cooperation with our politicians is debasing our currency.

* Why The Fed’s way of fixing the problem is causing the problem.
* How to Prepare and Prosper.
* What Investments are Crash Proof!
* Is Capitalism to be blamed.
* Is Bitcoin the new Gold?
* Can The Fed and our politicians save us from this Crisis?

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