How Much Inflation?

April 1, 2002

The wonderful federal government issues statistics galore, about every possible item that can be counted. I consider them to be about as reliable as the distorted mirrors in the funny house at an amusement park, which make you tall, short, fat, skinny, etc. You can look at yourself in a mirror that will easily correct any physical deficiency you may have. Being a few pounds overweight all my life, I remember always looking at myself in the one that made me look skinny. Come to think of it, I haven't seen any of those mirrors lately, but as a kid, I used to go to Glen Echo Park, a neat trolley ride outside of Washington DC, and go into the fun house all day, for 16 cents. (we have no inflation of course) At the entrance to the fun house, were these mirrors. I hope the younger readers of this screed, know the types of mirrors of which I speak.

Government always sugarcoats everything, so as to keep its subjects in the dark, and always optimistic and trusting. Ever wonder how many billions, these statistics cost to figure? All these little hair-brained bureaucrats sitting at their desks, with their computers giving all the wrong information, undoubtedly costs billions. Asking the federal government for accurate statistics, is an exercise in futility. If the truth were known, be it about Viet-ghanistan, unemployment, budget deficits, or inflation, we'd all be shocked. Truth in government, is an improbability, from the President on down, in my opinion anyway. Why would a government give accurate statistics, when the truth would make it look bad? Judges are on the federal payroll, so why would they rule against their employer? They usually don't. Expect the IRS to be taxpayer friendly? Look who pays the IRS, and decide for yourself.

Inflation, according to issued statistics, from the federal government of course, paint such a rosy picture, that most are certain all is well. What is it now, "officially?" 2%? 3%? Even the "official" statistics don't include food, housing, or transportation. If that isn't clue enough, there is a far more secretive arrangement that hides the truth, which is known as the QAM, which stands for the "QUALITY ADJUSTMENT METHOD." Hundreds of busy bureaucrats use this screwy method of figuring out the inflation rate, GDP, and industrial production. What it does, is negates price increases, by assuming there has been a QUALITY OF PRODUCT IMPROVEMENT, which negates any actual price increases…"officially." The QAM assumes all products are increasing in "quality," so price increases mean that we have virtually no inflation. The BLS (Bureau of Labor Statistics) statisticians claim that two thirds of all price increases are due to improvement in quality, so we actually only have a tiny amount of inflation.

The results of the QAM are turned over to the Commerce Departments' BEA, (Bureau of Economic Analysis) which assumes that increased prices are the result of increased output. Therefore, not only is the "output," but the "quality" continually increasing, and we will eventually reach Nirvana. Then the QAM is turned over to the Federal Reserve Board, so they can re-set the calculators to make everything turn out just ducky.

100 Million Americans are covered by cost of living adjustments. (COLA) If the "official" cost of living goes up by 2%, but the actual cost of living is going up by 15%, guess who is getting the shaft? Those living on Social Insecurity, can expect to go broke, as can those on every other single "service," or handout given them by the federal givernment. Isn't it nice to know we have a "non-inflationary economy?"

Not only are our basic costs of living NOT included in the calculated inflation rate, but the costs that are included, are jimmied up so as to be un-recognizable, thanks to QAM. Strangely, the "official" federal budget has mysteriously gone from $1.6 trillion, to $2.1 trillion, of late. This, of course is absurd, as the military uses half of that, and debt service is more than half that. Where are the rest of the budget's allotments? Truth emanating from DC? Pigs will sooner fly. Postage will go up, as will everything else I can think of, in the near future. The counterfeit presses of dollars are running full time overseas, and yes, they can reproduce the new bills. The Greenspan outfit is "increasing liquidity," at a breakneck rate, and Dubya wants to double foreign aid.

I dreamed of a cross between pigeons and woodpeckers. They would not only deliver the checks, but knock on the door.

Inflation is a hidden tax that never has to be collected, has nothing to do with the IRS, and there is no way to avoid it. When a pound of butter goes from $1.25 to $3.00, as it has in the last couple of years, is there any way to avoid the tax caused by the decreasing value of the "legal tender" we are forced to use? Buy a farm and raise your own food? That's no solution, as property taxes, electricity, fuel, fertilizer, and equipment prices go "up," right along with everything else. Buy a windmill, and produce your own electricity? What if the wind dies? Have a battery backup. Batteries will go up, along with parts for your windmill, and you will pay a tax on your windmill. There is no possible way to avoid the probably 15% tax on EVERYTHING, due to inflation, which may eventually become 'hyper,' thanks to dollars raining down on Viet-ghanistan with Dubya's photo on the envelopes, hundreds of billions in increased military expenses, "home defense," whatever that is, other than a series of colors, plus every other folly that can be imagined in DC. AMERICANS IN ITALY BEWARE, AS THE HOME DEFENSE TEAM SAYS THERE WILL BE AN ATTACK THIS WEEKEND! They're warning the Americans. Why not the Italians?

Sure, gold has gone up, as has silver, and everything else. Gold and silver are TANGIBLES, that are compact, and simply wonderful…historically, as well as currently. As the 15% inflation tax rains down on us…invisibly, prices will go up, up, up. I only wish that gold and silver would go up like everything else, so there would be no panic buying, and wholesale destruction of paper money. If gold and silver leap to the sky, the dollar may become trashed overnight. It has happened before, and it would not be pleasant. An interesting read, is a paperback novel, called "Patriots," by James Wesley, Rawls. The first chapter illustrates what can happen, virtually overnight. It is fiction, but it could happen. Sudden happenings that are a disaster, happen all the time. As I am writing this, across the street, a guy just ran into a tow truck, demolishing his station wagon. It happened suddenly, and he probably took his eye off the road momentarily. (The tow truck he ran into towed him away) My clients, and other dealer's clients, buy gold and silver for the same reasons as the Japanese are buying it. They know that, in an instant, gold, silver, bread, cars, and homes can go up astronomically in yen, because it is a failing denomination. The dollar has already lost 98% of its value, and the only thing keeping it from going the way of all flesh, is faith.

Faith in government statistics, faith in the trustworthiness of government, faith that government cares about you, rather than itself, is what keeps the buck afloat. It can be punctured, and sink quickly, but I HOPE THIS DOESN'T HAPPEN. I don't want the American, or any other economy to crash. (The Argentine peso has gone from a dollar to a quarter) I want you people to keep me busy turning your paper dollars into gold and silver on a regular, not panic, basis, and for gold and silver to go up at about 15% a year, just like everything else…forever. This will mean no panic, no rush into metals, and a nice life for everyone. Just a quiet, subdued, rise in all prices, as the presses continue to roll, and the checks are turned out by the billions. Wouldn't that be nice? You can close that savings account, and put the dollars into metals, and be safe. If it all comes down tomorrow, and perish the thought, those with dollars will be like those on the Titanic with not enough lifeboats. The gold and silver holders will be in the lifeboats. Those of you with dollars in the bank, will be singing "Nearer My God To Thee," as she slips under the water. I hate dollars, almost as much as the China Marts and others, which ship our capital overseas by the hundreds of billions each year. I want no dollars, and won't buy at China Marts.

Just protect yourself, as I guarantee you, the one worlders are trying to bring us all down to serfdom, and the givernment cares only for itself, or it wouldn't cook up the many scams to keep the truth locked up. Now, since I am preaching to the choir, lets all begin today's hymn with "The Old Rugged Cross."

Seventy-five percent of all gold in circulation has been extracted since 1910

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