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The Great Inflation Lie

October 28, 2013

Low inflation is not good for the economy because very low inflation increases the risks of deflation, which can cause an economy to stagnate. The evidence is that falling and low inflation can be very bad for an economy.

  • B.S. Bernanke, Chairman of the Federal Reserve, October 2013

The economic Revisionism above is arguably the most-evil lie being propagated in the world today. While there are numerous ways to demonstrate the economic perversions implicit in this falsehood, let’s start with one point. The Bankers who continually tell us how “good” inflation is for us never define what they mean by “inflation”.

As regular readers know; definition of terms is the starting point of all legitimate analysis. If you want your audience to understand your argument; first (obviously) you have to ensure that the audience actually comprehends the terminology which you are using.

Conversely, Con-Men have a precisely opposite modus operandi. They deliberately use terms which are poorly-defined/poorly-understood, because when doing so it’s much easier to trick and scam people. In merely explicitly defining inflation; we can reveal these banker Con-Men as the malevolent thieves which some know them to be.

Inflation (in the simplest terms) is the speed at which our money loses its value. This definition is easily proven with empirical evidence. When you go to the supermarket to buy a dozen eggs, and those eggs cost 10% (or 20%) more than they did six months ago, the eggs haven’t changed – in either quantity or quality. It is your money which has lost 10% of its value over that six-month period.

Obviously anyone with a functional mind knows that it is not “good” for our money to relentlessly lose its value; every minute of every day, every day of every month, every month of every year. Who wants the paycheque which they work so hard to earn to shrink (in actual purchasing-power) every time their receive a new one?

Our governments understand this. This is why they not only conceal the nature of inflation, they also lie about its magnitude. A particularly flagrant example of this constant lying occurred in July of last year, and has been cited in many previous commentaries.

In the same month that the World Bank was warning that global food-inflation was increasing at an annualized rate of over 100%, and governments in Asia were having an emergency-summit about this global “food-price shock”; the U.S. government was reporting (as its “broadest measurement” of inflation) a rate of literally 0%.

Assuming that the entire (gluttonous) U.S. population didn’t all stop eating for that entire month; the inflation number reported by the U.S. government that month (in this era of “globalization”) wasn’t simply a lie, it was an enormous lie. But as has been explained to readers previously; the Inflation Lie is a multi-purpose lie.

One of its primary purposes can be seen below: deceiving the Little People (the bottom-80% of the population) so that they don’t realize the speed/extent at which their paycheques have been destroyed.

The chart above provides three lines, with the black line being “nominal wages” (i.e. with no adjustment for inflation). The other two lines represent alternate methods for discounting wages with inflation, in order to provide us with our wages expressed in “real dollars” (dollars supposedly worth the same value, over time).

The blue line represents the (official) Inflation Lie. In other words, if we accept the fictional “inflation rate” reported by the U.S. (and other Western governments) each month, then supposedly Western pay-cheques have remained roughly flat for the Average Worker over the past several decades.

Then there is Reality. The green line represents the change in U.S. (and Western) wages using one consistent methodology to measure inflation each year; the only mathematically valid method of reporting any statistic over time. Conversely the U.S. government continually adjusts its method of calculating inflation; while never revising older data with its new methodology.

Conveniently, for 40 years, these changes in “methodology” have always reduced the magnitude of inflation. While the Banksters continually tell us how “good” inflation is for us; for forty years the government’s charlatan statisticians have been changing the statistical definition to make inflation look as low as possible. If inflation is so good for us, why conceal it?

Thus in real dollars, U.S. (and Western) paycheques have shrunk by roughly 2/3 over a little over four decades – all the way back to (literally) Great Depression levels. With Reality now presented and defined for us; we can revisit the claim by B.S. Bernanke that inflation is “good” and “deflation” is bad.

If inflation means continually shrinking dollars and continually shrinking paycheques; then obviously deflation is the opposite. Prices go down as our currency appreciates, and our paycheques (in real dollars) increase in size. This is “bad” for us?

Clearly, the Bankers (and our governments) have been lying to us. It is inflation which is the ultimate evil/horror in any economy, and deflation which is (in fact) an expression of economic health. Why then have the Bankers been able to successfully deceive the masses into believing the precise opposite of what can be demonstrated with simple arithmetic and logic? Because deflation is bad for the Con-Men themselves.

What happens when there is deflation in any economy? Asset-bubbles immediately implode, and Ponzi-schemes collapse. Deflation is a cleansing force which purges all bad debt (and fraud) out of any economy. Deflation is viewed by these Bankers as the Ultimate Evil because they are the ultimate Con Men.

This is demonstrated conclusively by examining merely one facet of their serial fraud: the derivatives market. Most people know of the existence of the derivatives market, but (surprise! surprise!) almost no one knows what it is, because (surprise! surprise!) the Bankers who run this “market” never define it so that people can see it for what it really is.

As with inflation; the actual truth is simple. “Derivatives” are nothing more than bets; bets about literally anything and everything in the world today. Once we define derivatives; it becomes immediately obvious what the derivatives market (a “market” for bets) actually is: it is a gigantic casino.

But this isn’t any ordinary, gigantic casino. It is a Crooked Casino, operated by known criminals. Again, proof is easily supplied. During the Greek “debt-default” (which, in fact, was caused by the manipulation of derivatives); the Banksters operating the Derivatives Casino simply refused to pay-out to all the Gamblers who had made huge bets that Greece would default.

Such gambling is known by the euphemism “credit-default swap”; and until recently all such gambling was illegal in the United States – based on anti-gambling laws. Why did the Banksters refuse to pay-out on their own bad bets?

Because the derivatives market is no ordinary Crooked Casino. Rather, it is a paper Ponzi-scheme which has swelled to somewhere in excess of twenty times the size of the entire global economy. We’re not sure precisely how large it is, because (surprise! surprise!) the Banksters changed their “definition” of this Casino a few years ago – causing it to instantly shrink (in nominal terms) to less than half its previous size.

How could even a Crooked Casino swell to such an obscene size? Because it has been leveraged and re-leveraged with $trillions upon $trillions of newly-printed paper currencies – the same paper currencies (and money-printing) which these Banksters use to create inflation (and devalue our currencies).

Finally, we see the tip-of-the-iceberg of this gigantic scam (and Lie). Why do the Banksters like inflation so much? Because they are the recipients of all these $trillions in newly-printed paper: totally/absolutely free money. Would you lie to people if it meant receiving $trillions in free money…every year?

The Banksters then use these $trillions to place new bets (and re-leverage their old bets) in their Derivatives Casino, and also to scam us. Indeed, as the previous chart reveals; inflation itself is one of their biggest Scams. They hand themselves $trillions in free money every year; our paycheques shrink every day of every year – as a direct consequence of that money-printing/currency-dilution.

The more they print, the more/faster they can gamble and steal (from us). The consequence of 40+ years of this stealing-and-lying is that the U.S. (and Western) standard of living has fallen by roughly 2/3 over that period of time.

“Not good enough,” asserts B.S. Bernanke, and his Bankster buddies. They want “more inflation” – so they can gamble even more recklessly/voraciously, while we get poorer and poorer, faster and faster.

This is merely a tiny sliver of what is behind the Great Inflation Lie. But with a Corporate Media monopoly, whose Drones parrot this Lie “24/7” as a monolithic herd; the Banksters (and our governments) have been free to perpetuate this Lie with impunity.

By their very nature; all Ponzi-schemes implode. The longer they are propped-up/perpetrated; the more-devastating the subsequent collapse. The Banksters have used their Great Inflation Lie to create the Mother of All Ponzi-schemes: the derivatives market.

As the (familiar) chart below illustrates; it is a Ponzi-scheme which is obviously on the verge of an Apocalyptic implosion/explosion. It can only be extended (even briefly) through even more insane/excessive money-printing.

Damn the torpedoes! Full speed ahead! The Suicide Jockeys who have hijacked our monetary system (and entire economies) are once again stomping on the accelarator-pedal, all the while humming the theme-song from the movie “M.A.S.H.”:

Cause suicide is painless,

It brings on many changes,

And I can take or leave it if I please…


Jeff Nielson

Jeff NielsonJeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is

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