False Diagnosis of Deflation

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One of the most bothersome questions from 2005 to 2007 used to be whether the Untied States would ultimately submit to inflation or deflation. This is actually the wrong question. Many analysts in my view are incorrect in their conclusion that the US suffers from a powerful deflation episode, since they endorse the wrong definition, confuse effect with cause (as usual), do not properly monitor the money flow, and then draw improper conclusions from prices. They suffer from a type of Keynesian Tunnel Vision. They are confused, and fail to adapt certain key measures after the financial sector highjacked the entire national system in the last two decades. If the tail controls the dog, then the movement of the tail must be properly monitored in the data. They add to the murky waters emanating from USFed marble-laden offices, and from USGovt agencies marred by clownish ineptitude. A divorce has occurred by the paper price of gold from the pure physical price. That is your loud unmistakable late signal of a system in a very important transition, where past indicators MUST be adjusted, so as to adapt to a new bizarre corrupt system. If deflation has won, the gold price would be closer to $500/oz than $800/oz, and surely would be to the 1995 price levels, like the housing sector. The iron rule of paper is in the process of yielding to a new power. It will be dictated by foreigners, and will involve a new monetary system linked to gold & silver just like before 1971 when the fatal schism occurred.

This is a must read article for anyone who wants to understand a little more on how the theft of America happens through both the inflation and deflation of our currency by the gangster Federal Reserve and their merry men. Its a long article but it must be read in its entirety for the full effect. We will never be able to abolish the Federal Reserve via legislation because they have bought and paid for our whole government. Its must be done by rejection of the crap they peddle and that is the paper worthless currency called the dollar. Instead of holding savings in dollars if we held it in physical silver and gold eventually the reserve and our fiat drunk government would have to change. Please read this article we as Americans need to wake up to this theft.