Tuesday, January 18, 2011

And Now For My Next Magic Trick… NO Inflation!

Silver Shield
Don ‘t Tread On Me
Jan 17, 2011

In “Presto! 9.4% Unemployment! How the Government Lies”, I detailed how and more importantly why the government lies to us about the real face of 25%+ unemployment. This article caused quite a stir and was picked up all over the web. It started to clarify the anger and frustration that we are all feeling. We know there is something terribly wrong and yet the government, media, and corporations are singing us a lullaby like, “Don’t worry your pretty little head and go back to sleep.” Well I am here, not to sing you a song and dance, but to wake you up because we are in for dire times and the sooner you face facts and understand what really is going on, the better.

“There are three types of lies; Lies, Damned Lies, and Statistics.” ~ Mark Twain

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And now for my next trick… I will now show you how the government steals our entire life’s work through the manipulation of the inflation numbers. These statistics/lies, may seem like “little white lies,” but they are at the core of the massive global corruption. The statistics/lies that the government pump out, hide the generational theft that has gutted America. Instead of candle light vigils held for slain murder victims, Americans should be holding them in front of the Bureau of Labor and Statistics. Far more pain has come from the constant grind of inflation in our lives and the wars and tyranny that it has funded.

“Lenin was certainly right, there is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a manner which not one man in a million is able to diagnose.”~ John Maynard Keynes

John Maynard Keynes is by far the most influential economist in this current dollar/debt paradigm. His work has given the intellectual foundation upon which the American Empire has wrapped it’s tentacles around the globe.

The government minions creates the fictional numbers…

The media sycophants fool us with their stories…

The financial predators sells us the dream…

The military industrial complex provides the muscle…

The banksters laugh at how simple it all is.

“We are all Keynesians now.” ~Richard Nixon 1971

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Lets knock this dollar/debt paradigm down a notch or two with the best weapon we have, the truth. Most people think inflation is the act of prices rising. The reality is that rising prices are merely the symptom of inflation and not the cause. Inflation is, at all times, a monetary event. When the money supply is created in excess of the available goods and services of an economy, inflation is increased. So every time the government whips out its Federal Reserve Black Card and creates a trillion dollars out of thin air, it shoves more dollars into a failing economy. The more money/debt into an economy that is creating less goods and services, the more inflation we get. The more dollars are in circulation, the less they are worth. So in reality, prices of the goods are not going up. It is the value of the dollar that is going down. Therefore, you’ll need more dollars to buy the same amount of goods.

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Boomers probably remember the days of 25 cent gas when they were kids. Well, back then, a quarter was 90% silver and a gallon of gas was still a gallon of gas. The only difference between now and then is our measuring stick, the dollar. After 1964, the government took the silver out of the coins. After 1971, the government took the international gold backing out of the dollar. Since then when have created trillions of dollars of new money/debt. This is flooding the world markets with more and more worth-less dollars. Simple math shows the more dollars chasing after the same amount of goods equals higher prices. Again, the price of goods are not going up, it is the value of the dollar that is going down. Let’s get back to the 25 cent gas scenario. Gas right now is at about $3.00 a gallon and as of last September, the value of the 1964 90% silver quarter was at about $3.00. Today, that same quarter is worth about $5, which tells me that we are going to have $5 gas this year.

So now that you know that, our media will blame the decline in our purchasing power on any other bad guy in the world except the real creators, the banksters. Let us look at a recent Drudge Report headline about $100 oil.

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Remember, the more dollars are printed, the less they are worth and if you sell anything of value you are going to say to yourself, “if you are destroying the purchasing power of your currency, I want more to make up for the lost value.” If truth be told, the headline would look something more like this…

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The Federal Reserve is the “lender of last resort” and the government is the “spender of last resort.” This sick symbiotic relationship of bankers gaining more profit from the debt/money they create and the government gaining more power from the money/debt they spend is coming to an end. The infinite debt growth model is going to meet a very finite world. This will not have a happy ending.

I don’t tell you this to depress the hell out of you. I do this because once you see how the world really works, you can prepare for this. Wealth is neither created or destroyed, it is merely transferred. When the stock market crashed, wealth was not destroyed. It was transferred to those that shorted the market or had political connections to get bailed out. We are going to have the largest transference of wealth the world has ever seen, when our dollar/debt paradigm collapses. It will make 2008 look like nothing but a blip on the radar screen.

It will be amazing to see so many lose so much.

What will be more amazing is how much that will be made by so few that were aware and prepared to be in the right place at the right time.

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I can tell you that the process of being in the “right place at the right time,” starts with the understanding of how the world really works and accepting the fact that it is not the way it is told to us. The next step is educating yourself in an excellent education found at my Sons Of Liberty Academy. This education is not really for informational purposes, it is to give you an absolute certainty of knowing where our world is heading. Once you have absolute certainty, you can then take massive action to do what must be done for yourself.

The government and the Fed are ramping up the printing press to create more debt/money to fund this system. You can see why the extension of the Bush tax cuts mean absolutely nothing. The government is simply going to print the money it needs and that money is going to literally tax everything and everyone. Actually, directly taxing us would be better because we would not have to pay the interest on the new debt. If they truly taxed what we need to include all of the unfunded and off balance sheet deficits, they would have to tax 100% of the income out there. It is not possible to tax that much because people will not work. People would have no hope and give up on everything.

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Printing money is better for the Elite. It makes people to run faster on the treadmill because they still have hope. Mother and fathers work extra hours or go further into debt thinking one day it will all pay out. Little do they know they are being manipulated into using their precious time and energy into a losing effort. All of those extra hours and dollars will mean nothing when the dollar paradigm collapses. Think about it, the deficit this year is at about $1.5 Trillion dollars. They will cover this debt with creating out of thin air, $1.5 Trillion dollars. That is the equivalent of the entire American GDP in 1974. With a couple strokes of the Fed’s iMac, they can duplicate the work/wealth of every American in 1974. Think of all of those hours and hard work that just got devalued with a ledger entry.

By printing more money, the dollars we save and earn become worth-less and is anoutright confiscation on our wealth. The real sin of inflation is that it is a regressive tax on the American people. It is regressive because it hurts the poorest the hardest. If basic necessities become more expensive, they are hurt the most. Inversely, it benefits the rich inordinately, because while their cost of living goes up, their assets go up further and tax free in some cases. That is why you can always plan on more inflation with our government and banking system since those that own the system will benefit from it.

One other point is that the well connected Elite are also the first ones to spend the new money in the economy. They can buy assets before the inflation pushes up the prices. Before the 1980′s when you thought of successful people, they were probably oil men, cattle men, industrialists, basically people who who worked in the real economy. Since then, it has been people that work in the false economy of finance, insurance, real estate, government contractors, and even the information technology. There is much more money to be made in the shuffling of money that creates no value than in the creation of real value. We are in the process of switching back to the real economy and the adjustment is going to be devastating for most of humanity.

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Quantitative easing is another big word used to confuse us. Quantitative easing is simply a monetary policy of increasing the quantity of money in circulation by printing money to purchase real assets such as 30 year treasuries. This coupled with the fiscal policy of deficit spending is designed to lessen the value of money and cause asset inflation, which of course leads to bubbles. How long do you think this game would last if they just told the public the truth, that it is a massive counterfeiting operation to prop up an unsustainable, generational Ponzi scheme and generate massive, risk free profits to insiders?

“The last duty of a central banker is to tell the public the truth.” ~Alan Blinder Vice Chairman of the Federal Reserve

Knowing that the elite would never admit the truth to us, they need lots of tricks to fool us and build plausible deniability. We have all heard that perception is reality. Well, bankers/government/economists, don’t really care about the money supply. Again, the more debt, the more money, the more profits, the more power. What they desperately care about are our inflation expectations.

When people feel that there is little inflation in the system, they tend to save their money. This increases the value of the Elite’s paper money system. When inflation expectations are high, people tend to buy now while their money still has purchasing power, which of course fuels more inflation. This speeding up of spending is called money velocity. This compounds the problem of the total amount of money in the system. When money is turned over faster and faster in the economy, it acts as a turbo charger. As you can see, our reaction to inflation causes more inflation. They hoard of goods, speculate and even panic buy.

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It is important to manage expectations before the inflation genie gets out of the bottle since it is more effective than price controls. When inflation kicks in, food and energy always go up at least twice as fast and any other asset inflation. With more inflation, they need more currency to reflect the higher prices. This also furthers the inflation. When this happens, people get pissed off and more often than not, governments fall and the Elites lose control. They must fool you to keep you calm as they gut you.

The main reason why the government hides this inflation, is that they are the main beneficiaries of inflation. The government profits off of manipulating the inflation numbers to sound lower than they really are. By understating inflation, the government…
–Lowers interest rates on debt it must pay for.
–Lowers the inflation adjusted payments it makes to social security and government employees.
–Keeps consumer inflation expectations under control.
–Allows the government to spend more money it does not have.
–Artificially lowered inflation boosts the GDP and shows a stronger economy than in reality.
–Strengthens the dollar to allow higher than normal purchasing power.
–Keeps American voters passive as benign inflation is not an issue.
By increasing inflation with deficit spending and monetary policies like QE they…
–Are able to buys real goods for worthless pieces of paper.
–Lowers the real value of debt.
–Pays for larger government without raising taxes.
–Forces mothers into the work force.
–Breaks up the family resulting in more power to the state.
–Asset prices rise along with all of the sales and property taxes.
–Forces families into higher tax brackets.
–Taxes money sitting in savings.
–For a while, people think they are getting rich.

So here are 4 main tricks the government uses to understate inflation.

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Full article HERE


The Black Sheep tries to warn its friends with the truth it has seen, unfortunately herd mentality kicks in for the Sheeple, and they run in fear from the black sheep and keep to the safety of their flock.

Having tried to no avail to awaken his peers, the Black Sheep have no other choice but to unite with each other and escape the impending doom.

What color Sheep are you?