Truth and Lies Series

Rossa brings us some pause for reflection:

This is a series of 3 posts based on the writing of Giordano Bruno who is an active member of the Liberty Movement in the U.S., trying to see the truth through the fog created by deliberate lies told through the media. Mainly focused on the U.S., it has implications for the global community as a whole – similar to what we are trying to do over here. i.e. get the word out.

1. The Fog of Global Disinformation

In the past few years, the concept of economic globalism has revealed itself as quite the Trojan horse; once posing as the next step in the evolution of “free market” capitalism and the saviour of third world nations striving for development status, now revealed as a fiscal plague spreading delirium and destruction wherever it touches ground. There is no denying that the economies of the world are irrevocably tied to one another, but until recently, this was always thought of as a “good thing” in mainstream financial circles.

Today, the great failings of engineered interdependency are painfully apparent. The EU’s many peripheral nations are dropping one after another like flies in a fog of DDT, rising economies in Asia are bloated with investment capital escaping from debt default in the West, causing impressive levels of inflation, and the U.S. is on the verge of a currency implosion as the Federal Reserve opens the floodgates of fiat in a bid to hide our system’s extreme destabilization and maintain what little international faith is left in our ability to service our rampant liabilities. Globalism has led us to disaster…

Of course, this disaster is not quite so obvious if you only follow the MSM’s version of events, or the pithy, watered down observations of mainstream economists, central bank officials, and puppet politicians. In fact, it’s difficult for the average person only mildly versed in economics to understand just what is going on! The closer we get to the edge of the ravine, the deeper the deception becomes. Most Americans feel the danger intuitively, and see the warning signs in their local communities, but clear, concise information in the midst of this ‘Gordian Knot’ of lies is difficult to come by.

Treasury Secretary Timothy Geithner claims that the Fed’s quantitative easing programs are no threat to the dollar and that our country “will not engage in devaluation”, all while commodity and energy prices skyrocket to record levels and numerous nations threaten to dump the dollar as the world reserve currency. China claims that their inflation is manageable, releasing CPI data that is even more arbitrary and skewed as our own, while the Chinese masses grow louder in their anger over a lack of purchasing power to match exploding housing and food prices. The U.S. blames the lack of global recovery on China’s undervalued Yuan and its unfair trade imbalance. China blames the lack of global recovery on the overprinting of the dollar. Europe sits across the Atlantic hoping both China and the U.S. will keep printing and sending currency care packages to keep the EU afloat, all while claiming every three months or so that the “crisis has passed”.

So, what’s the truth in all of this?

In the following, Giordano Bruno of the Liberty movement attempts to dismantle the latest disinformation campaigns, explaining the most important factors surrounding the developing calamity between the world’s major economic powers in the easiest terms possible; including how these factors will directly and indirectly affect you…

Lie: Current Inflation Is Caused By “Global Recovery”, And “Rising Demand”

The great lie surrounding these inflationary warning signs is that they are a product of “recovery”, and increasing demand in the U.S. and developing countries. While the “demand” argument may be partly true for gold and silver’s rise, it is certainly not true for oil and grains. Global demand for goods overall is dropping off a cliff, as is evident in the Baltic Dry Index, which measures shipping and freight rates around the world. The BDI has suffered a 20% decline in the past three weeks alone:

http://www.theindonesiatoday.com/transportation-headline/6577-baltic-dry-index-fell-20.html

If shipping demand is falling around the world, then demand for goods is falling around the world. If demand for most base goods is falling, then demand is not the cause of our current price spikes. Period.

More Americans filed for consumer bankruptcy in 2010 than in any year since 2005. Keep in mind that the government’s new rules making bankruptcy filing far more difficult took effect after 2005. This means that even with harsher bankruptcy guidelines, we still saw a massive wave of filings last year. If demand is actually a substantial factor, then U.S. consumers are burying themselves in red ink in order to support it:

http://www.marketwatch.com/story/consumer-bankruptcies-rose-9-in-2010-2011-01-03

Considering that over 8 million Americans have stopped using credit cards just since Christmas 2009, I think it much more likely that consumer demand in the U.S. is flat, or, still falling, despite the claims of the MSM:

http://abcnews.go.com/Business/holiday-shopping-americans-cut-back-credit-card/story?id=12367547

Mainstream analysts are often quick to point out that annual retail sales for 2010 were up over 6%, claiming this is a sure sign of recovery. Unfortunately, in their effort to ignore inflationary factors in 2010, they forgot to consider that perhaps rising retail sales were not due to increased consumption, but INCREASING PRICES on goods we already buy daily. Black Friday and Christmas season sales were generally unimpressive compared to 2009. Black Friday sales were flat and December sales were up only 0.6%. Are Americans really buying more, or are they forced to spend more on goods they need due to inflation?

Truth: Dollar Devaluation Is Occurring, Inflation Is Here

Widely visible inflation in the U.S. has been steadily developing for at least one and a half years. Food, energy, and metals prices across the board are soaring, and commodities actually outperformed stocks, bonds, and the dollar in 2010:

http://www.bloomberg.com/news/2011-01-01/commodities-lead-gains-as-all-assets-climb-on-recovering-economy.html

Wholesale prices (according to “official” numbers) rose 1.1% in December, following a 1.5% gain in November. These figures are diluted, to be sure, but the fact that inflation is being reported at all signals probable danger for the coming year:

http://www.marketwatch.com/story/us-wholesale-prices-up-11-in-december-2011-01-13

Grain prices surged in 2010. Corn gained nearly 60%, while soy and wheat gained around 40%. Cooking oil prices jumped 62%:

http://www.bloomberg.com/news/2011-01-12/corn-soybean-wheat-prices-surge-as-u-s-cuts-supply-outlook.html

Anyone today who denies inflation is evident in the U.S. economy is either blind, dishonest, or mentally deranged. In any case, they are not to be trusted. The question now is, is this inflation being caused by devaluing world currencies like the dollar, or a myriad of random chaotic “coincidences”…

2 comments for “Truth and Lies Series

  1. January 20, 2011 at 15:11

    Unless this is simply Chapter One I am of the opinion that even this analysis is somewhat lightweight. A stronger factor in commodity rises is a succession of speculative bubbles being pumped with funds provided to the financial sector with the intention of increasing its capitalisation.

    What commentators don’t fully understand is that when rates eventually rise, which they will, there will be a sudden liquidation of positions in order to re-capitalise exposed positions as defaults surge.

  2. January 20, 2011 at 17:28

    There are two more parts, Wolfie. Rossa’s scheduled two more.

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