George Orwell’s Future is Here!
Most people think of “inflation” as “rising prices.” This is a result of “Big Brother’s newspeak”–terms borrowed from George Orwell’s novel, Nineteen Eighty-Four, about a futuristic society in which the government (“Big Brother”) changed the definitions of key words (“newspeak”) to make the people think and act the way the government wanted them to.
Most any dictionary will reveal that the true definition of inflation is “an abnormal increase in available currency and credit beyond the proportion of available goods, resulting in a sharp and continuing rise in price levels.” (The American Heritage Dictionary, Second College Edition.)
Rising prices are not inflation but a result of inflation. It is an increase in available currency (think “monopoly money”) and credit (artificially low interest rates) that cause inflation and ultimately higher prices.
The government doesn’t want you to know the true definition of inflation, because the true definition sheds light on what causes inflation. The government, and particularly the Federal Reserve, is the cause of inflation.
By redefining inflation as higher prices, they can obscure the cause of the problems that ultimately result from inflation (e.g., higher prices), and are thus able to blame others–like greedy speculators–for the problems created by the government.
Inflation is a hidden tax on the middle class and poor. It is a means of transferring wealth from the poor and middle class to the wealthy and elite. No wonder the government doesn’t want you to understand it! (Full explanation here.)
Your Dollars are Just Monopoly Money
Federal Reserve money printing in the past year–to create its own bailout from the problems it created, and to finance other government bailouts– is the functional equivalent of the government saying that you can take the Monopoly game out of the closet, grab all the colored pieces of paper, put three or four zeros on the end of each bill, and then go out and spend it…However, the way this game has been played, some folks got multiple sets of Monopoly money, some financial institutions got thousands of them and yet a lot of individuals got no Monopoly money. But the outcome is still the same: The value of the money in circulation has to be worth less once this turbocharged Monopoly money is introduced into the system. That means inflation…Folks will ask me, “How can we have any inflation, given what’s going on today?” Well, we may not have inflation immediately. But it is not debatable what would happen to the purchasing power of your green pieces of paper when you think about the Monopoly example. (“Your Dollars are Just Monopoly Money” By Bill Fleckenstein MSN Money)
The problem — you can’t save the real world with fantasy money.
When too much fantasy money is created, knowledgeable people turn to real money — gold. Which is why central bankers fear and hate gold. When the world turns to gold, it is turning away from the fantasy (“counterfeit”) currency that the central banks create. This terrifies the bankers, whose power comes from their ability to create “money” out of thin air. Meanwhile, a great bull market starts, it’s a bull market that mirrors the demise of the dollar. Gold is priced in dollars, and as the dollar weakens, it takes an increasing amount of fiat dollars to buy an ounce of gold…Meanwhile, the “secondary” monetary metal is silver (often called “the poor man’s gold” Silver is far too cheap compared with its historic ratio to gold, which has been as low as 15 to 1. [Currently it is about 59 to 1]) (“The Questions are Endless, by Richard Russel, Dow Theory Letters, Oct. 9, 2009.)
A Related Problem that “Big Brother” Doesn’t Want You to Know About:
Death of Petro-Dollar, Told Ya So
This is truly incredible news. The US will soon no longer be permitted to sell its indulgences. This is major Paradigm Shift material…This is a lock for gold to hit $1500 within months, and $2000 within a year. This is a lock for silver to hit $30 within months, and some screaming figure within a year that cannot be fathomed right now, like $50. Be sure to see almost zero follow-up for this story in the crumbling US press networks, …The big story from the US Dollar impact will be rising higher costs throughout the US lands, where incomes will continue to fall. It is called a cost squeeze…Get ready for change. This is Grand Paradigm Shift on a global scale. Prepare for it or be ruined by it!! Ride the TSUNAMI of change or be drowned and crushed by it!! (“Death of Petro-Dollar, Told Ya So” by Jim Willie, Hat Trick Letter, Oct. 8, 2009.)
How to Protect Yourself from “Monopoly Money” and its Eventual Hyperinflation
Gold is money. Gold has been, and remains, the most important money in the world. It has been accepted as money around the world for over 4,000 years…If you doubt that gold is the most important money, let me ask you: What does the U.S. military pack in the emergency kit of fighter pilots in case they need to buy their survival? They don’t put in dollars, yen, pound notes, or any other paper money. The U.S. military puts into the emergency kit some gold coins. Why? Because at all times, and in all circumstances, GOLD [and Silver] IS MONEY. (Put 10% Of Your Assets into Gold… And Hope It Doesn’t Work! by Paul Airasian)
More at my web site: The New Survivalist.com