I

 

know he wants to sell his product, but it doesn't mean he isn't right.

Peter Schiff: Here’s Why Inflation Is Going to Get Worse

"And of course, 

the 0.5% month-on-month gain was still a pretty big number. 

Meanwhile, the prior month was revised from -0.1 to +0.1.

Peter: "So, inflation is starting to turn back up, and I think we’re going to start to see hotter numbers in future months, and that’s going to throw cold water on the idea that the Fed is finished and can start cutting rates based on victory over inflation.”

The host asked Peter if we are going to get to 2% inflation. Peter emphatically said, No!”

"Even if they strip out food and energy, you’re still nowhere near 2%.”

"Peter brought up the new buzzword – supercore inflation – noting that it excludes shelter. He said that is even more irrational than excluding food and energy."

"But even if you exclude shelter, the year-over-year increase is still 4%. So, that’s double the Fed’s 2% target. So, I don’t think they’re going to get anywhere close to 2% before they start stimulating again. I think we’re going to be in a very severe recession, and we may even be in the midst of another financial crisis. With that backdrop, the Fed is going to start creating inflation, not fighting it.”

(It's going to be far worse than the financial crisis ever thought about being.)

"Peter pointed out that the central bank and the US government have been creating inflation for more than a decade."

Peter: "The Fed has barely withdrawn that liquidity. I think we’re still seeing the impact of that and especially the inflation that it unleashed during the COVID pandemic. So, I still think we have a way to go before we catch up. Meanwhile, government policy is still inflationary. We have very expansionary fiscal policy. The government is running enormous budget deficits. That’s highly inflationary. And even though the Fed has raised rates, you still have negative real rates and we’re not encouraging people to save. People are still borrowing as much as they can. The savings rate is near lows. The credit card debt is near record highs. So, the Fed’s rate hikes have not really altered the spending and savings decisions, which I think are key to bringing the inflation rate down. As long as people keep spending, I don’t see any way we’re going to get down to 2%.”

(They will only stop putting things on their plastic when they cant anymore...)

"The host asked Peter if the CPI actually reflects what Americans are experiencing. Peter pointed out that inflation is the expansion of the money supply. Rising prices are a consequence of inflation. Does the CPI capture the extent that aggregate prices are rising?"

"I don’t think so. And I think that’s deliberate. I think the CPI was designed to give you a low reading because of the politics of the number. The government made it up. It’s like a scorecard on government policy, and obviously, the government wants to get a good grade.”

"Peter said doubling the official number probably gets you close to accurate. That means the real CPI is closer to 12% than 6%."

"Peter went on to explain how the government changed the CPI formula in the 1990s to understate rising prices and prop up Social Security."

(That is such a great point I had almost forgotten about.)

"The idea was if we can just make the CPI lower, then we won’t have to raise Social Security payments as much. And so, that’s a way to cut Social Security — pretend that we have lower inflation than we actually do.”

(Ive said on here we are no different that the old Soviet Union anymore just making #'s up.)

Peter pointed out that if you run the current data through the old CPI formula, price inflation was worse last year than any year in the 1970s or 1980s. And it’s not getting any better.

"I think this improvement is transitory. We’re going to see higher numbers, probably by mid-year.”

(Right when the gas prices are gonna start going up, go figure,)

"The host asked Peter about the “wage-price spiral.” Peter said that was a concept made up by Keynesians."

"If you think about it, wages are a price. Wages are the price of labor. It’s how much I have to pay somebody to get them to work for me. … You can’t say the reason prices are going up is because prices are going up. The question is why are all prices going up? Why are wages going up and why are other prices going up? And that’s because of inflation. Who creates the inflation? The government.”

"Peter said the reason they came up with this “wage-price spiral” concept is to blame workers for inflation or to claim inflation is the price we pay for prosperity."

"That’s BS! It’s the same thing as the cost-price push — saying inflation is caused by rising costs. No, it’s not. And again, costs are prices. One person’s cost is somebody else’s price. There’s no difference. You can’t say prices are going up because costs are going up. Costs are prices. So, prices don’t go up because prices go up. They go up because the money supply is expanded.”

(It's what we do in this country, blame working people for all the problems...have ya noticed?)

But wait, there is more:

Brace Yourself: The Perfect Storm of Crises is Converging in 2023

"If I had to condense it down to the single most important theme, it would be, without a doubt, rampant currency debasement.

It’s an unstoppable investment trend you can bet on in 2023.

This trend rests on the biggest distortion that has ever existed in the history of financial markets and the global economy. As I’ll discuss, the unwinding of this distortion has long been inevitable, but now it’s imminent.

(The "biggest distortion that has ever existed in the history of financial markets and the global economy."? was due to the loose monetary policy the FED had no choice but to follow following the financial crisies. Thats what caused it and now were gonna have to pay for it.)

"Money is a good, just like any other in an economy. And it isn’t a complex notion to grasp. It doesn’t require you to understand convoluted math formulas and complicated theories—as the gatekeepers in academia, media, and government mislead many folks into believing.

Understanding money is intuitive and straightforward.

Money is simply something useful for storing and exchanging value. That’s it.

People have used stones, glass beads, salt, cattle, seashells, gold, silver, and other commodities as money at different times.

Think of money as a claim on human time. It’s like stored life or energy."

(Thats what you get paid for, the time they are taking away from you to do what you want, not the work actually done. My time? my time is more valuable to me than anybody could ever pay me for it, I think you can figure out what goes with the rest of that ...:-).

"Those entrusting government currencies with their life savings will soon experience a harsh economic reality check as this longstanding delusion gives in to reality… like the one former Soviet citizens received as communism crumbled."

"This trend of rampant currency debasement is already in motion, accelerating, and unstoppable."

"As the graphic from Visual Capitalist shows below, almost half of the world’s population lives in countries with double-digit inflation."

(It's Biden problem? get away from me you small minded &*(%*&&*)&%* etc)

"There is no doubt the actual number is even higher as the chart below cites official government statistics, which always understate reality."

"Many consider the US dollar the best of all the fiat currencies.

However, even according to the crooked official statistics which understate reality, the US dollar is shedding 7-8% of its purchasing power each year."

"The means everyone holding US dollars will lose 50% of their purchasing power every nine years."

"And that’s the BEST case scenario."

"Those holding other fiat currencies will see their purchasing power melt away even faster.

And that is just how things look right now. It’s set to get much worse."

2023 could be the year the trend of rampant currency debasement reaches a crescendo.

Michael Saylor captured the essence of the situation when he said, “The road to serfdom consists of working exponentially harder to earn a currency that is growing exponentially weaker.”

(And that's when I said 7 years ago:

F*#% This! 

I aint doing it anymore! 

If a whole bunch of people did that all at once? Watch the prices fall.)

"The original and correct meaning of inflation is an increase in the money supply."

"Since its founding in 1828, Webster’s Dictionary had defined inflation as “an increase in the money supply.” Then in 2003, it changed the definition to “a rise in the general price level.”

The difference might seem subtle, but it’s not. It’s a deliberate deception."

(Who is the father of all lies again?)

"Redefining inflation in this way confuses cause and effect, and that is exactly the point."

"Price increases are not inflation. Instead, they are an effect of inflation—an increase in the money supply."

"Neither the local grocery store, the pharmacy, the restaurant owner, nor foreign scapegoats are responsible for inflation. The government—with its monopoly control over the currency—is."

"In short, the CPI is a worthless statistic. It’s misleading government propaganda intended to conceal the government’s hidden inflation tax.

(ALL the inflation indicators are.)

Yet, most people incorrectly equate inflation to the CPI because government officials, the mainstream media, and academics repeat this falsehood, and most people thoughtlessly accept it as gospel."

"The real way to calculate inflation is intuitive and uncomplicated."

"You don’t need to perform complex math calculations or have an advanced degree in economics—anyone can do it."

All you need to do is look at the change in the money supply. Doing so eliminates much of the noise, political manipulation, and propaganda of the CPI to get a clear picture of what is occurring."

"It is no surprise that the government prefers people to focus on a nebulous statistic like the CPI rather than the change in the money supply."

"That’s because when you look at the change in the money supply, it becomes clear that the government is engaging in a staggering amount of currency debasement."

"In short, the Federal Reserve has recently created more money out of thin air than at any other point in US history. Since the start of the Covid hysteria in March 2020, the US money supply has increased by an incredible 39%."

(It's not sustainable and time to pay the piper is right around the corner.)

"If your after-tax wealth has not increased by 39% since March 2020, then you are not keeping up with the Fed’s monetary debasement. You are losing ground and on the road to serfdom."

(Sound fun? There is no stopping it, you will  work more and more for less and less till the whole thing goes belly up this time. The can has been kicked to the end of the cul de sac, we might kick it around a lil while longer, but there is no "out" this time. The conditions that precluded this one boxed us in this corner. Remember, QE was considered experimental/extreme etc. And now where here.)

"It’s just an anecdote, but I don’t know anyone whose after-tax wealth has grown by 39% since March 2020. I imagine that most people don’t know anyone, either.

Here’s the bottom line…

There’s an excellent chance more inflation and financial chaos is coming soon.

Are you ready for it?"

(I cant believe they are actually getting their message out there, they sound like somebody I know who has been saying largely the same thing for years now. The sooner you make your peace with where things are inevitably headed? The easier it will be for you to deal with. The longer you ignore the reality that's coming? The harder it will be. Queue Brother Brian:

"It's not complicated!")