Today we will focus on the definition of inflation and why how the government with the help of the Central Bank will fool many into thinking there is no inflation.
We will look at how governments use inflation to confiscate the wealth and efforts of the general public and how they get away with it.
Related Articles:
- Peter Schiff: Inflation Is Really a Tax
- How Price Inflation Benefits the Wealthy
- Michael Burry Warns Weimar Hyperinflation Is Coming
- Governments Will Default Via Inflation at the Expense of Savers
“What Has Government Done to Our Money” by Murray Rothbard: https://mises.org/library/what-has-go…
“The Raven of Zürich”: https://www.docdroid.net/wqlhhGn/the-…
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See Full Video Transcript Below
Today we’re going to look at how inflation is going to wipe out many people especially the middle class the lower classes the people who are uh struggling to survive and how it’s all a matter of semantics how the powers that be the central bankers even the economists who are supposed to be a bit more intelligent are going to fool all of us there’s an old quote and I think it was Keynes who made that quote in the introduction to one of his major books I think the general theory book and he attributes this quote to Lenin some people argued that Lenin never said that but even if he didn’t it’s a really good quote it says that inflation wipes out the bourgeoisie which is the middle class and that only one man in a million realizes or women that it’s happening and why is that well because governments that’s what they do best they extract wealth from the public they take us to wars they create crises in order to stay empowered they divide us through politics and other things and that’s why you need to how can I say try to switch off from the distractions know the definition of things and not be fooled by a government and their statistics about what they call inflation so to explain inflation to you I’m gonna look at a couple of quotes and some definitions that I’ve done many times in the past for my old viewers this is like a repetition but I’m getting a lot of viewers and even for the old viewers you need to keep this is in mind because in the press in the mainstream media you’re gonna get bombarded with misinformation so there’s Felix summary who was a banker was known as the raven of Zurich he always said that inflation is purely a monetary phenomenon and that without government you can’t have inflation so that that’s a really important quote I think and I’m gonna come to my own explanation of how I would explain inflation but before that I’m gonna look at another summary quote he also said inflation on the other hand can go on for years without its victims becoming conscious of the incredible way in which they have been swindled and now to the definitions the first one is from the Merriam Webster dictionary from the 1970s which I still have it says an abnormal increase in the volume of money and credit resulting in a substantial and continuing rise in the general price level so it could be anything going up in price so rising prices aren’t the consequence of inflation but nowadays they’ve made us believe that rising prices uh is the inflation and they put it into baskets called CPI or PCE and they tinker it they measure everything that doesn’t go up they adjust it for hedonics substitution what substitution well let’s say the price of steak goes up too much they’ll replace that with a lower quality beef right and that’s what they do they don’t include the price of housing they don’t include rent and many other things that affect the cost of living so that was in the 1970s from the Merriam Webster dictionary and this one here is from the Oxford English dictionary from 1925 and I have to thank one of my viewers for sending me this because I don’t have a 1925 edition of the oxford dictionary it says inflate abnormally increase states currency especially by issue of inconvertible paper so there you go paper backed by nothing for my explanation let’s go back into a society or an economy that is so very how can I say not very well developed and hasn’t involved and people still barter for things so let’s say I’m a farmer I have cows I produce cheese and then I need shoes and John produces shoes so and luckily he wants cheese and I need shoes so we exchange those two products that have value actual value the cheese john can eat the cheese and I need the shoes let’s say civilization so to speak comes into our village and says oh we’ve got this currency now you’re gonna have to use this you can’t barter anymore and you’re gonna have a hundred of these he’s everyone’s gonna have a hundred right and then you find that a year later this currency is all around and people are being forced to use this but you can’t get as much cheese or shoes because people realize there’s just too many of these around that they don’t really have any value so that’s inflation and that’s what we have and that’s why it’s so dishonest in my opinion some of the stories and headlines that we see for example here in the UK yesterday we were told that the inflation they call it inflation even though it’s the basket of goods that from which they measure prices right they said the office of national statistics said annual consumer price inflation it’s not consumer price inflation it’s just consumer prices inflation as I said is purely a monetary phenomenon so it says that inflation so they use consumer price inflation slowed to 0.4 percent in February from 0.7 percent the previous month an unexpected drop due largely to an unseasonal fall in prices for clothes secondhand cars and toys so now it’s clothes secondhand cars and toys that actually create or lower inflation so this is from the FT Financial Times supposed to be a top finance econ economics newspaper so it’s quite amazing and people never learn so what about the cost of living that’s what’s going up right that you know they don’t talk about the fact that our utility bills are going up they don’t talk about UK house price growth right look at look at what it’s done in the last 12 months it’s gone up by eight percent you see that’s the consequence of inflation that’s rising prices and they’re telling us there is no inflation they don’t talk about the local taxes going up by at least three percent here in London we have a tax that we play we pay for the greater London council which is the mayor of London that’s going up by nine and a half percent they don’t talk about the price of transportation going up they don’t talk about the price of food they don’t talk about shrink-flation packages shrinking even more and the prices sometimes even going up and staying the same I like buying this it’s like a box of meatballs it’s probably not great for me but it used to have about 12 meatballs in there for a pound which was pretty good value but now I notice they’ve cut it in half but the price is still a pound so what else there are other headlines here and this is all from the mainstream media UK inflation falls to 0.4 percent in February and that’s not month on month that’s year on year do you really believe that prices are going up by 0.4 percent so the guardian says UK inflation slow as UK and Eurozone businesses return to growth in march BBC UK inflation rate falls as close prices drop so you see they’re trying to tell you that government has got nothing to do with inflation right it’s people who sell clothes yahoo finance UK inflation unexpectedly falls as close shops slash prices so I mean it’s pretty amazing that people never learn I remember back in the 90s when I worked in the markets that Germany for some reason called the CPI the cost of living data and they were right and why is that well because the Germans the Bundesbank German economists up until recently unfortunately they have had to join the bandwagon and change what they used to call the cost of living data to CPI and why is that well because the Germans have had two currency collapses in the last hundred years we had the Weimar hyperinflation in 1923 and we had the Post World War II collapse of the currency 1945 mid 40s to late 40s so they know what inflation is and what causes they know that it’s the printing of money by government and banks out of thin air and I remember very well that the German Bundesbank the German central bank they used to target m3 that was the most important statistic that used to come out for the German government bond market and I remember very well they had a target of around maybe two to four percent they if M3 went up above that level you could bet that the bond market would be under pressure and yields would rise and I remember in 1994 there was a German M3 data that came out and there was a lot of speculation that it might be uncomfortably high for the Bundesbank and that they have to raise interest rates and it came out at 30 percent year on year and I remember the the German government bond future the 10 year future the bund dropped to like almost 90 or I think it dropped from like 97 to 93 in one day and nowadays of course is over 160 that price and it was probably the busiest day I had in my career as a futures broker at that time we still used to pass our orders to the floor of the exchange I used to work in the office and it was a day I’ll never forget a day where I had sometimes two sometimes three phones talking to different clients and luckily there was an order that I gave and I wasn’t sure if the guy who put the order to the exchange got it so I gave it again and the next day we found out that they executed that twice and fortunately we made money on that on that trade I think we made like 50 000 marks but I could have lost my job so it was a really hectic day so the Germans unfortunately I don’t know what year they changed the name of that statistic from cost of living to CPI so I’m sure the younger Germans are being fooled like we’ve been fooled here in the UK and in the us we hear from J. Powell that inflation is going to be only temporary or what he calls inflation of course is the CPI or the PCE and that things will go back to normal and don’t believe him your cost of living is going to continue to increase what this is going to do what governments do with these indices that they produce is they use that to basically rip off pensioners rip off public sector workers rip off many people that depend on the government for their livelihood because for I think it’s in April that they take the CPI here in the UK and they use that to index the increase in in in the public pension the increase in public sector workers wages so if it’s almost near zero you’re gonna have a very little or no increase in your wages while the cost of living has gone up so that’s how they confiscate your wealth not only wealth but your efforts because a lot of people unfortunately that are not wealthy that are just starting out young people or people who are at the bottom of the ladder economic ladder they their wages also are not going to cover the cost of living is it anyone that there’s that there are so many people hard up these days if prices were really under control or we didn’t really have inflation things would be great I mean supposedly now we have a great economy only five percent unemployment we’ve got almost no inflation and growth is great even though most of the economy has been in lockdown most of the last 12 months it’s really amazing so for all those out there that say that we have a deflation problem please do your homework look at the semantics you’re doing people a disservice by telling them that there is no inflation and I recommend this book here for those of you who want to learn more about what inflation is what has government done to our money by Murray Rothbard he goes through the regression theory and what does that mean well he goes back in time to see how money and currency came about and he goes through the barter the indirect exchange and you understand what inflation is in my opinion by reading this book I’m going to put a free pdf file for it in the description you can also buy it as well if you’d like a hard copy I’ve had this book for years it’s one of the best books I think that helps you understand money inflation and everything else and how only government can create inflation you might say well what about you know it’s commercial banks that issue the loans that create money yes that’s TRUE but it’s the government that gives the power monopoly power to the central bank that controls the commercial banks yes so without government instituting legal tender laws and prohibiting people from using whatever they want to use as money they’re able to control the money supply and inflate the money supply and basically confiscate your wealth and that’s what they’re doing right now so how do you protect yourself well it’s very hard especially if you’re just starting out if you’re on a fixed income if you’re a pensioner but if you’re doing well and you are being able to save extra fiat currency this inflation currency you need to change it to something else because in the long term it’s going to be worth less and less and eventually you go to zero so precious metals is always what I tell people I’m trying to accumulate to protect myself and it’s done great for me in the last 20 years so gold and silver and it’s up to you to decide what you want to how can I say put your savings into what about for people who can’t afford to do what I’ve done well just be aware that that’s what they’re doing be aware that you cannot be dependent on governments for your livelihood or for your pension in the future maybe try to build your own private pension on the side whatever that may be don’t think that the national pension the public pension here in the UK is gonna provide you a decent living because it won’t it’s going to be diluted greatly by the inflation so with that let’s quickly look at where the markets are it’s just before 8 a.m London time so we’ve got spot gold at $1733 it’s down just over a dollar range has been $1740 to $1730 so he has precious metals the most important thing for precious metals right now and John Adams said that in his interview with me is not to worry about the fiat price you need to think long term because what what the powers that be do as well they want you to stay in this inflation game so they can rip you off right and if you go into gold and silver you’re not playing their game anymore so they do the most they can to discourage people from protecting themselves financially and that’s why it’s so frustrating for precious metals investors after almost 20 years of having saved in precious metals yes I know how frustrating it is but in the long term it will be very rewarding in my opinion has been so silver is trading around 25 down about 10 cents so still stuck here but of course if you try to get silver from many places you won’t be able to some people are waiting weeks or months for real silver the Dow futures up 63 S&P is up six Nasdaq 100 futures up 20. the currency is a little more stable this morning sterling is unchanged virtually 136.77 the euro is at 118.06 the dollar is up slightly versus the yen up a third of a percent at 109.07 and the dollar is up 0.1 of a percent versus the yuan at 6.50352. I saw crude went up yesterday a bit there’s this huge container ship that ran aground in the Suez Canal that could disrupt the supply chain we need to keep an eye on that that could make things even worse for the world economy uh we’ll have to see if they’re able to move that container ship it it’s a huge container ship apparently is as long as the empire state building is tall so it’s blocking a traffic there I think 50 ships go through the Suez canal every day and it could affect things going forward so yeah WTI crude right now is down one point three percent just above 60. high-grade copper is down almost two percent right around four dollars so that’s come off a little bit bond market the 10-year yield is at 162 so pretty much unchanged it drifted off yesterday below 160 and there you go if you enjoyed this video make sure you hit the like button please share it far and wide think about subscribing to my channel if you haven’t yet and you can also follow me on Facebook Twitter and all these other platforms below here I wish you all a great day take care bye
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