As the debate on inflation continues and politicians and central bankers tell us it is transitory we will look at why it isn't.
Politicians and central bankers are the ones that create inflation so they will never tell you the whole story and actually blame anyone or anything for the rising prices that inflation helps create.
Free pdf of The Raven of Zürich: https://www.docdroid.net/wqlhhGn/the-...
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See Full Video Transcript Below
Yes I have been warning people for the last year about inflation and why am I warning you again well because I think it's gonna get really bad it's gonna be even worse of course inflation has been baked in the cake ever since the Federal Reserve was founded in 1913 the purchasing power of the dollar has been dropping very steadily down and that's what inflation is it's the the basement of the currency it's not price increases price increases are the consequence of inflation and I'm hearing some very comical comments nowadays not only from politicians but of course also from central bankers because they're not there to help the public even the democrats or the republicans or the tories or labor they're part of the same team to basically extract as much wealth from you as possible they're put there by the bankers who benefit massively from the inflation because they act as agents for the government and they're always raking in the funds the inflation they're getting rid of the the phony money and putting it into assets quicker than all of us can do so before I go further and we look at some of these comical comments actually from people like Joe Biden people like Alexandra Ocasio-Cortez and comments also from a Bank of England uh official we're gonna look refer back to my old Miriam Webster Dictionary from the 70s it used to be my dad's I kept it after he passed on unfortunately well that was 1998 so it's been a while now but I always like to refer back to this dictionary because that's been one of the things that they've been able to do is change the definition of words and that's really serious because inflation is basically theft and I'm also gonna refer to Felix Somary who spoke about inflation but nowadays we're told that inflation is rising prices they never talk about the fact that it's the money printing the creation of money and credit out of thin air so that's why I like to go back to the 70s which was a time when things hadn't gotten as bad in terms of the propaganda so it says here inflation an abnormal increase in the volume of money and credit resulting in a substantial and continuing rise in the general price level of course prices flow to different places at different times at different paces that's the Cantillon Effect of course so I'm going to share with you here this is a pdf from the Raven of Zurich I highly recommend this book I'll put the free pdf in the description of the video I think it's very expensive to buy this book I've got a copy I bought it many years ago I'm keeping a hold of it so if you go to page 98 the Raven of Zurich is the memoirs of Felix Somary this is what he says about inflation that did not prevent the wide dissemination of this deposit myth myths generally spread wider and last longer than knowledge of mere facts the state alone is responsible for inflation inflation without government or indeed against government is impossible so there you go who was Felix Somary well he was one of the most respected bankers of the first half of the 1900s he advised governments kings he advised the US Treasury he advised the Bretton woods conference not directly but behind the scenes very respected banker he was born in Austria he moved to Switzerland and then during World War II or just after world war ii he moved to the us so with that I wanted to play this clip here it's Ocasio-Cortez talking about inflation and you see that she's got no clue she's actually asking for more inflation she calls it infrastructure spending but we know that infrastructure today is like a Universal Basic Income it's got very little to do with what infrastructure used to be in the past but let's listen to it
News Clip Begins
Interviewer: You know today I'm sure you saw you know what happened with the stock market that they said it was because of covet but there was lots of talk about inflation so I want to talk about the fears of inflation president Biden pushed back assuring Americans that the price increases that they've seen hitting their wallets are temporary now last week you questioned the Federal Reserve Chairman Jerome Powell and expressed concern over prematurely raising rates and what could what that could mean for marginalized communities what are your biggest concerns over inflation congresswoman
Alexandra Ocasio-Cortez: Well here's the deal with inflation is that if we do not get the root cause of these price increases right then policy decisions could be made that could really negatively impact your life boost unemployment and again increase in interest rates and we do not want that so it's really important that we get the diagnosis right into what's going into these price increases when you look at what actual prices are going up it's in very specific sectors if this was an overall inflationary issue we would see prices going up in relatively equal amounts across the board no matter what the good is but we know it's getting expensive things like the cost of lumber, items like cars whether they are new or used and other sorts of items that rely on shipping and shipping containers coming in from overseas these are very sector specific which means that these are due to supply chain issues that means that we don't have enough ports that can accommodate all of the backed up ships that are trying to come in, it's because we don't have enough computer chips that are produced by just a handful of factories in the world that go into these vehicles which are then causing a rush on used vehicles and it's because of all of the you know all the Russian demand to build and to remodel homes during lockdown and the reason it's important for us to understand that is because the solution to that is guess what infrastructure yeah we need to put in more money and more money so we expand ports so that we can add resilience to our supply chain that's what we can do if we get it right we actually support these infrastructure investments and make sure that we protect not just the size but potentially make it bigger now if we get it wrong if we say this is inflation that this is an inflationary trend etc. what's going to happen if we get it wrong we put policy pressure and political pressure on the Fed to increase interest rates which will drive up the rate of unemployment which is the exact opposite thing that you want to be doing in such a fragile state of our economic recovery post-Covid so that's why it's so important that we get this right and put the politics aside
News Clip Ends
So there you go no mention of the government and the fact that the central bank and the government have been stimulating not only monetary policy but fiscal policy of course for the last 14 months or so the trillions of dollars in money and credit that have been created no mention of that by Ocasio-Cortez she doesn't know the definition of inflation she's blaming rising prices for inflation she's blaming lumber yeah they love doing that blaming things for inflation yeah my analogy is like if you're overweight you can't blame your tummy for being overweight you have to blame yourself for eating too much for not burning enough calories to keep your weight stable so Ocasio-Cortez basically is blaming the result of inflation for inflation so I just wanted to prove to you that money and credit are rising and have been going exponential as you can see here this is M1 this is the revised the new M1 from the Fed they still can't hide the increase so I mean no mention of that by Ocasio-Cortez and she also noted that the economy wasn't doing well so we need even more inflation what that's going to do it's going to make the economy even worse for the people that she's supposed to represent because inflation hurts the people at the bottom because unlike very wealthy people they can't protect themselves from inflation they don't have the savings or wherewithal to buy tangible or hard assets they're struggling to survive every month because prices are rising so let's look at M2 now not just M1 so I'll share M2 with you as well just to show you yeah there you go M2 as well you notice how it's just picked up massively the rate of increase since last year and now I wanted to play Mr. Biden president Biden this is what he said about inflation that he's using the transitory excuse as well so let's listen to him I mean has come roaring back we've seen some price increases some folks have raised worries that this could be a sign of persistent inflation but that's not our view our experts believe and the data shows that most of the price increases we've seen are were expected and expected to be temporary reality is you can't flip the global economic light back on and not expect this to happen as demand returns there's going to be global supply chain challenges we've seen that in semiconductors which are used in automobiles that global shortage has slowed vehicle production creating it so I'm going to stop here because you get the idea blaming everything but themselves not talking about the trillions and stimulus yes the economy comes back economic activity picks up but if you have a healthy economy where people are producing it shouldn't be inflationary the more goods you produce the less inflation there should be the problem is that there's too much money and credit in the system so with that I want to now go to because it's not only politicians that try to fool us about inflation but also central bankers also economists in the city of London and on wall street so here we have a Bank of England official it says UK inflation risk hinges on wage growth warns BOE official so this just sounds like it makes you believe that wages create inflation and they use that old chestnut they say that in the 70s it was the unions that created inflation because they demanded higher wages and got higher wages but they never look at themselves the fact that they are creating money and credit out of thin air and infinite that they have rates at zero percent that is inflation and I think these unions and people who represent workers they need to do a lot of homework about this because what they're going to do if they don't ask for the right things is they gonna get even more inflation and it's gonna spiral out of control so it says here rapid price rises for consumer goods are unlikely to last so they're all into this agenda or narrative of transitory but UK rate setters will have to watch out for signed signs of wages increasing at a pace that could lead to more persistent inflation another big fat lie there because as we know inflation is created by government with the help of the monopoly created central bank through monetary and fiscal stimulus through deficit spending and we know the deficit reached almost 20 percent in the last fiscal year here in the UK the government is out of control it's also out of control in the us and it was out of control prior to the current administration prior to the crisis last year the budget deficit in the states was running at five percent so I've got no political preference because both sides of the aisle anywhere in the world are playing the same game don't forget it was a republican that took the world off a gold standard off sound money almost 50 years ago so Ben Broadbent deputy governor for monetary policy acknowledged that the extent of the rise of UK inflation was hard to explain well it's not hard to explain Mr. Broadbent you know just look at yourself in the mirror and what you guys have been doing for the last well I would say 13 years since oh wait you guys have been inflating like mad and you've been inflating even more in the last 14 to 15 months average over the past 18 months it has been only slightly lower than before the pandemic even though gross domestic product is still well below its pre-crisis level well the reason for that Mr. Broadbent is that you've yeah you've created the stimulus you've put funny money into people's hands for not working and that's why you have higher prices you shut down the economy yes there are disruptions but people don't want to work a lot of people don't want to work they want to stay at home if they're getting their furlough or whatever there was a good case to argue that some of the contributing factors would be temporary he said in particular the global surge in goods price inflation should slacken as consumers switch back to spending on services and supply bottlenecks ease while it doesn't look like they're easing I spoke about yesterday about the shipping problem with seafarers it's only going to get worse there's too many as I said these people are trying to fool you but let's continue even though inflation is likely to rise further in the coming months and actually what he means is not inflation its prices continue to rise and that's how they get you because they tinker with those measures of prices and they say oh inflation is lower the appropriate policy response could well be nothing there you go they don't want to do anything they want to keep inflating if this was only a story about global good goods prices and here's the funny part very comical at least for me who knows what inflation is of course a lot of people are going to buy into this unfortunately they're going to blame higher wages for low-paid workers for the inflation they never blame inflation when politicians give themselves like 10 pay rises or when Jamie Dimon or other people on wall street in the city of London get huge bonuses that's not inflation right but when it's you or lower paid workers it's inflation so here it goes but he warned that policymakers would have to pay very close attention to the numbers in the labor market because inflationary pressures in the domestic economy could be more persistent so blame it on the labor market blame it on labor shortages never talk about the fact that you're creating funny money and credit out of thin air so I think that's enough for inflation for the day so what's the way to protect yourself against inflation well it's very hard of course especially if you are on a fixed income if you're a pensioner especially if you are lower paid or even if you're not lower paid if you're not like a a high flying executive or if you're not a politician it's very hard to keep up with prices rising and I think it's going to continue the only thing that's temporary I think it is the narrative that it's temporary because they're gonna have a trouble hiding this inflation and they're trying really hard to do it so with that let's quickly look at where the markets are this morning so I'm doing my video today on zoom and so I can share these pages with you so you can see what I look at when I when I give you where the markets are so as you can see here it's 8:08 am London we've got spot gold pretty much unchanged at 1806. the low has been 1801 in the high 1810 so why haven't gold and silver done better we're supposed to have inflation well inflation as I said is the creation of money and credit out of thin air so last year in march they started inflating massively the Fed's balance sheet m1 m2 and actually gold went from 1450 to over 2000 in a matter of months it actually telegraphed or warned us about the price rises coming that's what gold did is does that mean that it's going to stop now because we've had the price rises no because the inflation is going to continue as you see Keynesians think that inflating even more is the solution to inflation because they don't know that inflation is the creation of money and credit inflation is deficit spending and it will result in a lot higher prices so yes there are only really two kinds of money that protect you from long-term inflation and those are gold and silver and they've done it through the ages for thousands of years I'm not saying you're gonna have to wait thousands of years of course for gold and silver to protect you but just think that back in 2002 gold was trading around 250 or 300 dollars and many people consider it the period since then a period of martyr inflation and despite that gold is done really well so is silver and silver last year got down to 11 when everything imploded in march and then we had the inflation the beginning of the inflation and silver reacted by going to 30 so we need to be patient we need to realize as well that having a gold and silver is more than just protecting our wealth as I said or savings as I said yesterday it's about not financing this crazy policy of inflation from governments and central banks so silver this morning is down six cents as you can see here 25 35 high has been 25.50 of the low 25 22. just show you a a chart of silver here yeah you can see there's a trend line here and it's part of a triangle let me draw the other trend line so or a wedge or a pennant whatever you want to call so this is a monthly chart and as you can see I think we're holding we're holding this let's see let's draw this better yeah we're pretty much holding the bottom of this pen as you can see so yeah still winding and a pattern like this normally results itself in the resumption of the prior trend which was up yes there's a possibility that we could go down but with all the talk of inflation the fact that they're gonna keep inflating of course they don't call it that I'm pretty much convinced that silver will eventually break through the top of that pennant and go blow through 30 very quickly yes it's taken longer but we need to be patient I would say so what about the rest of the markets as you can see the Dow is up 83 the Nasdaq is up 40 the S&P up 16 the FTSE is up 50 points just above 7,000 sorry and the currencies you got sterling down about an eighth at 137.51 the euro is unchanged the dollar is up slightly versus the yen there at 110.34 and the dollar versus the u1 is up slightly as well as 647. let's look at the other FX rates so we've got the Aussie dollar down a quarter of a percent at 73.64 and the dollar is up slightly versus the Canadian at 125.71 so WTI crude is unchanged back above 70. 71.75 high grade copper up 0.1 of a percent almost at 434 well around 434 just wanted to show you the coffee chart because they've had a pretty back bat frost in brazil over the last few days I think was the beginning of the week so if you look at it's not just lumber now it's coffee as well and yes this is because of the frost so we went from 160 to almost 200 in a matter of days but notice how since last year coffee has been going up as well that's the inflation that's the consequence of inflation so let's finish with the bond market let's look at the 10 year yield so I'm sharing this with you here this is from investing.com as you can see this is the whole yield curve here but we usually look at the 10-year yield you see it's up two basis points just below 129 128.80 you can see where the other rates are the one month rate is almost at zero the two year yield for the two year note is at point two and the thirty years just below two here at one 192 so if you enjoyed this video make sure you hit the like button please share far and wide think about subscribing to my channel if you haven't yet and you can also follow me on Rumble, Twitter, Facebook and all these other platforms below here I wish you all a great day take care bye
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