Fed Officials Frantically Play Dumb To The Coming Inflationary Storm
The Fed is baffled as to why inflation remains so low.
It’s a clever move, given that the reason inflation is believed to be “low” is because the Fed has been purposefully understating inflation for years.
Perhaps the biggest fraud ever committed in financial history concerns the understating of inflation in the Unites States post-1971.
By the Fed’s own admission, the US Dollar has lost some 84% of its purchasing power since 1971, and yet the Fed has routinely claimed that inflation has been “subdued” or “under control” throughout that time period (with the brief exception of the inflationary spikes of the ‘70s).
With this level of currency depreciation, incomes would have to rise exponentially to compensate for Americans’ higher cost of living. They haven’t. As a result of this, Americans have increasingly relied on two parents working instead of one, while supplementing their incomes with credit cards and other debt instruments.
The below chart is possibly the single best argument against any claim by the Fed or others than the official inflation numbers are accurate. If income growth was indeed greater than the rise in inflation post-1971 as the below chart suggests, most families would currently have only one parent working and STILL be saving money. Instead, today the norm is for both parents to work and the average US household to be sitting on over $137,000 in debt.
Put simply, the official inflation numbers are garbage.
The Fed purposely wants it this way because understating inflation allows the Fed to
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Overstate GDP growth
And…
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Paper over the fact that incomes have been on the decline relative to cost of living since the early ‘70s.
So don’t let the Fed fool you with its “gosh, where is the inflation?!? We don’t understand!” act. The Fed KNOWS inflation is rising rapidly. Heck, the $USD has already dropped 10% in the last 12 months that’s DESPITE the Fed hiking rates THREE TIMES.
Put simply, BIG INFLATION is the THE BIG MONEY trend today. And smart investors will use it to generate literal fortunes.
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The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.
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Graham Summers
Chief Market Strategist
Phoenix Capital Research