Big Brother’s “Newspeak”

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

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3 Responses to “Big Brother’s “Newspeak””

  1. 1 survivalist October 14, 2009 at 10:11 am

    If Inflation is the Problem, Then Why Are Some People Afraid of Deflation?

    Currently, according to many, we are going through a period of deflation–the very opposite of inflation. This is partly because bank are hoarding their money, and so there is less credit (remember, inflation is an increase in both money and credit.) But this is a temporary situation.

    Additionally, there are obviously other factors that influence prices. One of these is the velocity of money–the speed at which money changes hands, or how fast people spend their money.

    If everyone put their money under their mattresses, for example, instead of spending it, then inflation would not result in higher prices. But eventually that money will be taken out and spent, and then we will see the full results of all the Fed’s monopoly money printing. All it takes is the fear of inflation (or rising prices) for people to start spending their money, because they will want to spend it before it loses its value. That is why the government is more concerned with “inflation expectation” than with true inflation. (Jim Puplava refers to “inflation expectation” as the “how long can we keep them fooled index.”)

    How long can they keep them fooled?

    They can’t keep China or India fooled any longer, and these two, along with others, are becoming increasingly concerned about the declining dollar, and the resulting loss of the spending power of their dollar reserves. As a result, China has been unloading its dollars, preferring hard assets like gold, oil and other commodities. Other nations are talking about requiring that their oil be paid for in Euros rather than in dollars (the “end of the Petrodollar.”) As soon as people realize what’s going on, and that the spending power of that money hidden under their mattresses is rapidly falling due to a declining dollar, they will be pulling it out to spend as well. The result? The velocity of money will increase, and the full effect of all the Fed’s monopoly money printing will become evident. We will experience this as rising prices, and what people will call “hyperinflation.”

    The Chinese are taking steps to insure that they will not be left without a chair when the music stops! Shouldn’t you?!

    More at my web site: (See Chapter 15, Money)

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  2. 2 survivalist October 21, 2009 at 3:59 pm

    Inflation or Deflation? How About Both!

    Quoting “The Bullion Buzz – October 20, 2009” at:

    “US Economy will Suffer Simultaneous Inflation and Deflation
    Joseph Brom

    “For the next several years, Americans’ net worth will decrease and their food and energy costs will increase as the economy suffers the effects of both inflation and deflation. This apparent paradox can be explained by John Exter’s Inverted Pyramid. This is an upside down pyramid made up of assets backed by debt. The foundation of the Inverted Pyramid is the ultimate form of money, gold, because it is an asset with no liability attached. As you move up the pyramid, the debt-backed assets get more and more illiquid. Exter argues that as debt and leverage increase in an economy, the money supply inflates and creditors move up the pyramid into increasingly illiquid assets, causing prices increases in those assets. When the economy is saturated with debt, the money supply can no longer be inflated. As the debt becomes difficult to service, bankruptcies and defaults increase, the money supply deflates and creditors move down the pyramid into more and more liquid assets; out of real estate and stocks and into US Treasuries, US dollars and ultimately into gold. This flight to quality is deflationary, which results in price decreases in the debt-backed assets. Brom discusses the possibility of a hyper-inflationary collapse, and the effect it will have on the price of gold. In conclusion, he writes, the US economy is suffering an economy-wide price adjustment caused by inflation and deflation. The deleveraging and decrease in credit is deflating the present money supply, which will cause the prices of stocks and real estate to decrease. The past inflation in the money supply will cause the prices of gold and commodities to increase as they adjust for the past 30 years of inflationary policies. So, for the next several years, Americans will watch their net worth decrease while their food and energy costs rise.”

    The above is a summary. Read entire article at:

  1. 1 Page not found « The New Survivalist Trackback on November 5, 2009 at 4:24 pm

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