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Part I of this series began to address a seeming paradox. As explained and defined in that initial installment, by mathematical/economic definition, the Federal Reserve has already hyperinflated the U.S. dollar – past tense. Yet the consequence of that hyperinflation of the money supply (spiraling prices/a plunge to worthlessness for the USD) has yet to materialize.
It was explained that one part of this paradox is the historic lag in time which has been observed, between when a currency becomes fundamentally worthless from a monetary standpoint, and the time the currency sees its actual exchange-rate plunge to zero. This is the “confidence gap”: the length of time in which the Chumps can continue to be deluded into using this worthless currency, and continue to assign it value.
The other half of this equation can be explained through various forms of fraud, deceit, and market manipulation. Two previous examples were already detailed: the fraudulent and systemic upward manipulation of the U.S. dollar, itself – a crime for which the Big Banks have now been criminally convicted. Concurrent with this demand for U.S. dollars is faked in global markets. Primarily this is done via massive/systemic fraud in the U.S. Treasuries market.
As noted in Part I, however, this is merely the tip of the iceberg. To start with, the U.S. government, like all Western governments, grossly falsifies its inflation statistic.
Food prices spiral higher at the fastest rate in our lifetime. Western real estate markets have been deliberately pumped-up to unprecedented/catastrophic bubble levels. In the case of the U.S. market, this deliberate bubble-blowing was interrupted by a five-year crash, before it too began to be re-inflated.
While this has been occurring, the shameless liars in government and media have been pretending that inflation is at near-zero levels. Indeed, these charlatans have the audacity to proclaim that inflation (i.e. price inflation) is “too low” – an economic impossibility.
Price-inflation represents the destruction in purchasing power of our currencies. It is a form of economic cancer, yet the charlatans insist that we don’t have enough of this cancer. Since delaying hyperinflation is a con/confidence issue, lying about inflation is an important tactic.
But what happens, in a legitimate economy, when food and housing costs start spiraling higher, due to monetary inflation and the destruction in purchasing power of that currency? The workers in that economy demand higher wages to compensate them for that monetary crime, and return them to the same financial condition in which they existed before this banker-made inflation effectively confiscated some of their wages.
In the absence of a gold standard, there is no way to prevent the confiscation of savings [or wages] from inflation.
– Alan Greenspan, 1966
Sadly, we have neither a gold standard, nor legitimate economies. Without a gold standard, there is no way for workers to prevent the erosion of their wages (in real dollars) through this theft-via-inflation. Yet U.S. and Western wages are flat – in nominal terms. Workers are not being compensated for the systemic theft of their wages, except for the tiny percentage of Fat Cats, at the top.
How is this possible? Through the crime of globalization, our pretend “free trade”. Real free trade can only exist on a level playing field, where all trading partners have equalized wages, working conditions, and tax structures. This is an elementary principle of economics.
What we have instead is globalization, a permanent race-to-the-bottom, pure, economic fascism. With borders erased (for purposes of trade) multinational oligopolies play “musical chairs” with global, industrial production, continually shifting that production to the lowest-wage jurisdictions. To refer to this as “free trade” reflects either fundamental ignorance, or a cynical attempt to deceive.
The consequence of this economic betrayal, orchestrated by Western puppet governments, at the request of the Oligarchs, is massive, systemic unemployment. “Structural unemployment” across the Western world, meaning permanent unemployment, totals somewhere in excess of 100 million people.
How do you permanently depress wages? By creating a permanent, global race-to-the-bottom with wages, combined with sadistic, unprecedented levels of unemployment, where workers don’t dare ask for fair/meaningful raises in pay. It is nothing less than a crime against humanity, and it helps to depress overall price-inflation – and thus assists the banking crime syndicate in hiding their hyperinflation.
However, it’s not even supposed to be possible to hide inflation, let alone hide hyperinflation. Why not? Because we have an economic “canary in the coal mine”, which is supposed to automatically alert us to any/all such monetary crime, as the supply of money is being inflated/hyperinflated.
This Canary is gold. As a true “monetary metal”, by economic definition the price of gold should automatically reflect increases in the supply of money, through direct/proportionate increases in the price of gold. This goes beyond (below?) elementary economics, to the level of simple arithmetic.
Yet as the supply of U.S. dollars was officially increased by 400% from the beginning of 2009 into 2014, the increase in the price of gold was only roughly 1/10th that amount. Again, this is something which simply could not happen in any legitimate market. The price of gold, and the other, monetary metal – silver – has been ruthlessly and systemically suppressed.
It is beyond the scope of this analysis to detail this systemic manipulation. This has been the subject of numerous, previous commentaries, as the systemic manipulation of these markets has taken place via numerous, different forms of financial crime. For readers who remain skeptical, we have proof of this systemic price suppression, direct from the lips of one of the foremost criminals.
…central banks stand ready to lease gold in increasing quantities should the price rise.
– Testimony of [Federal Reserve] Chairman Alan Greenspan, July 24th, 1998
Gold is “leased” in Western markets for one, and only one purpose: to be (illegally) dumped onto markets. Dumping is an activity which has only one purpose: to depress the price. In public testimony, Sir Alan Greenspan has freely confessed that Western central banks “stand ready” to orchestrate gold-dumping, any/every time that the price of gold rises (and the Canary begins to sing).
The Canary is dead.
But why stop there? If suppressing the price of gold (and silver) helps to hide-the-hyperinflation, and suppressing wages helps to hide-the-hyperinflation, why not suppress all prices? Indeed, permanently/systemically manipulating wages lower results in lower prices for all goods produced with those systemically depressed wages.
However the manufacturing process has other inputs other than labour: raw materials (i.e. commodities) and energy (i.e. oil). Thus these prices are also deliberately and systemically manipulated lower. Again, the proof is all around us.
Gold and silver are monetary metals and thus are supposed to react (in price) directly and proportionately to any change in the supply of money, But all hard assets – including commodities – are also supposed to react in an approximately proportionate manner.
Therefore, as previously noted, when the supply of U.S. dollars was being hyperinflated over a span of less than six years, we should have seen a concurrent spiral in all commodity prices. The precise level of increase would have been dictated by individual fundamentals of those various markets, but all commodity (and hard asset) prices should/must have reacted in a roughly equal manner.
They didn’t. This is proof of further, systemic manipulation. Period.
Again, most readers will be skeptical. How could everything be manipulated? Simple. How does humanity deal with all large-scale “paperwork”? Through computers. Our corrupt, or simply brain-dead market regulators have allowed the Big Bank syndicate to use their blatantly manipulative, computerized trading algorithms to literally take over our markets.
Global markets now move like a single, synchronized yo-yo, with prices marching up and down in near-perfect lock-step. This is impossible in any, real markets. Ergo, we no longer have “markets”. What we have literally, is a rigged-by-computer trading system where the operators of the primary trading algorithm (the Big Bank crime syndicate) can march any price in any market to virtually any number they desire.
1) 74% of all U.S. equities showed significant evidence of market-rigging.
2) There was further evidence of “correlation” in this market-rigging, meaning a single Invisible Hand (i.e. trading algorithm) was manipulating all these markets.
With roughly ¾ of all “trading volume” in our markets now reflecting computerized trading, we literally no longer have markets. A “market” is a meeting place where human buyers and sellers interact. All of our rules and principles of markets are based upon human trading and interaction. We now have computers “trading” with computers.
This is not legitimate. This is not a market. It is more, systemic crime.
Understand that even with this systemic market-rigging, systemic fraud, and systemic corruption that U.S. hyperinflation, and a similar monetary catastrophe throughout most of the Western world cannot be prevented – merely delayed. The crime syndicate perpetrating this monetary/financial rape is simply looking to extend its organized crime for the maximum duration. In turn, this guarantees that the inevitable hyperinflation looming before us will be more economically catastrophic than previous and current manifestations of this economic crime-against-humanity, for any/all who are unprepared.
How does one “prepare” for monetary Armageddon? This too, is obvious. Hyperinflation represents the (complete) destruction of any/all wealth denominated in the currency which is being destroyed. To avoid the destruction of such paper wealth requires merely moving that wealth out of paper, and into humanity’s convenient “storage vessels” for permanently and securely preserving one’s wealth: gold and silver.
Hyperinflation is inevitably a deliberate, economic crime. It is an inevitable, mathematical cause-and-effect phenomenon, which has now been laid out for readers. Fortunately, it is a crime from which we can protect ourselves with time-tested, financial insurance: precious metals. Meanwhile, the clock keeps ticking.
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First published here: http://www.zerohedge.com/news/2015-11-01/how-hide-hyperinflation-part-ii