ECONOMIC OVERVIEW: Dow Down Again
The Consumer Price Index is rigged
NOTE TO READERS: Below is a portion of The Trends Journal magazine’s weekly economic update. Please consider supporting us here by subscribing.
Inflation is going down, but as we have detailed and well noted by ShadowStats.com, the Consumer Price Index is rigged… for two reasons.
First, the higher inflation rises the more Washington has to pay to the Plantation Workers of Slavelandia who receive Social Security benefits.
Secondly, the Bankster Gangsters want to keep the cheap money scheme going so the money Junkies on The Street—aka, “investors,” private equity” hedge funds,” etc.—can keep gambling, grow bigger and control more.
An example of rigging the game, the biggest services component that accounts for 30 percent of the overall CPI index is shelter costs.
Last month, it had the smallest rise in four months, increasing 0.6 percent.
But the government crime syndicate does not add spiking home prices into their index. Instead, they invented another scheme by eliminating the cost of home ownership and instead calling it “owner equivalent rent.”
Indeed, as noted by Forbes, “The owner rent figure does a poor job of revealing the rise in living costs. This will give you a sense of how the metric has gotten out of alignment with reality: Over the past 35 years home prices have just about quintupled, yet the owner-rent number used by BLS has merely tripled.”
TREND FORECAST: Yes, inflation will go down, but it keeps rising, and across the commodities, services and products spectrum. The vast majority are multiple percentage points higher than they were before the COVID War was launched by China in January 2020, in celebration of its Lunar New Year, The Year of the Rat.
And while used car prices will continue to fall, where energy prices will go, as we see it, are up much higher.
Why?
It’s more than just supply and demand. the Ukraine War and the West’s ramping up their fight with Russia and Middle East tensions escalating as Israel, according to the mainstream media, goes radically right.
There can be significant declines in demand with plenty of supply, but if the supply chains are cut off—which they are already as a result of U.S. and NATO sanctions on Russia, and may worsen if Israel goes to war against Iran—oil and natural gas prices will hit new highs.
And, without a major peace movement, inflation, and Life on Earth, will get much worse.
The World is at war, launched by demonic political war mongers and sold to the public by the mainstream media, who’s Presstitutes—media whores who get paid to put out by their corporate pimps and government whoremasters—keep ramping up their “hate the enemy” narrative.
Dragflation
We maintain our forecast for Dragflation: declining economic growth and inflation. Yes, the rising interest rates will slow down the already slowing economy and much of inflation is here to stay.
It is not a strong economy that drove up inflation… it was the COVID War.
Allegedly to kill the coronavirus, politicians locked down their nations. Initially, to “flatten the curve” it would only last a few weeks that schools closed, offices emptied out, most stores and all restaurants were closed down… commuting to work and air travel were prohibited.
Draconian actions taken in so-called “democracies” by politicians that robbed people of their Life, Liberty and the Pursuit of Happiness were based on political science and not hard facts and scientific data as we extensively detailed since the COVID War began.
Making up crap as they saw fit, across the national spectrum, weeks turned into months and months into years, putting billions out of work. With shortages of products and supply chains disrupted, the cost of goods and shipping rose sharply.
Making bad inflation matters worse, to silence the sheep, the politicians who declared the COVID War and imposed draconian lockdown mandates—that destroyed lives, livelihoods, hearts and minds of the masses—politicians gave them money.
Indeed, equity markets should have crashed in March of 2020 when the COVID War was launched across the globe. But the unprecedented cheap money scheme kept artificially propping it up. Across the globe it was much of the same to keep artificially boosting dying economies. In the U.S. over $6 trillion was pumped in by Washington and the Fed invented zero interest rates policy.
Let’s Lie
The fact is the cheap and free money schemes pumped up inflation, but it is now being denied by those who created the problem.
Last week, we noted that Austin Goolsbee—the soon-to-be head of the Federal Reserve Bank of Chicago and longstanding member of the Washington crime syndicate who played economic adviser to former President Barack Obama—said it wasn’t the countless trillions of government and Fed cheap money schemes that caused inflation.
As reported by The Wall Street Journal, back in the summer of 2021, Goolsbee “was among the many economists who argued that increasing inflationary pressures were being driven primarily by supply-chain bottlenecks and were likely to abate largely on their own.”
And the big Fed lie continues.
Q. Where is inflation going and how low can it go?
A. Tune into the mainstream media for the answer and swallow the crap from network nitwit news.
The big splash across the Drudge Report was a picture of the U.S. Treasury Secretary, Janet Yellen, above the headline: “SANTA YELLEN! INFLATION WILL BE ‘MUCH LOWER’.”
How about yelling bullshit?
Appearing on Sunday’s CBS’s “60 Minutes,” they introduced her as “an economist with over 50 years of experience and a former chair of the Federal Reserve who knows better than most about the delicate balance of trying to engineer an economy that keeps inflation at bay without causing widespread layoffs and a downturn.”
Keeps inflation at bay?
The Fed Banksters that dropped interest rates to zero, along with the U.S. government that pumped in over $6 trillion of phony money backed by nothing and printed on nothing to fight the COVID War did not keep inflation “at bay,” it brought it on land and spread it across the country from sea to shining see.
Hey CBS, take a look at the housing market that boomed when ultra-cheap mortgage rates created a housing boom in which prices skyrocketed over 40 percent since 2020.
And what about Yellen “Knows better than most.”
Yes, she “Knows better than most” imbeciles or media Presstitutes who get paid to put out by their corporate pimps and government whore masters.
While The Trends Journal had forecast that inflation would spike and Feds would be forced to raise interest rates, a year-and-a-half ago, Yellen basically said the opposite.
As we reported in May 2021, Yellen said, “I don’t think there’s going to be an inflationary problem.”
When she half-admitted she was half-wrong in an interview on CNN (The Cartoon News Network) at the end of May, Yellen blamed inflation “on unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t—at the time—fully understand.”
TREND FORECAST: These are the people in charge of our lives and livelihoods: Liars, Cowards, Freaks and Fools in a country near you.
Yes, the rigged inflation numbers went down, but not in the everyday real world of the Plantation Workers of Slavelandia. With inflation still running at early 1980s highs, according to Moody’s Analytics the average U.S. household spent $396 more per month in November, to buy the same goods and services it did a year ago … or $4,752 more year at that rate.
Hitting the public in the stomach, year-to-year, the price of eggs were up nearly 50 percent, butter and margarine up some 34 percent, lettuce up some 20 percent, cereals and bakery products up 16.4 percent, milk’s up about 15 percent and poultry 13 percent.
If you want to take a trip, airfare was up 36 percent and a ride on America’s third world public service transportation rose almost 25 percent.
Thus, with the average pay raise in the U.S. up 4.2 percent in 2022, the people are being hurt in their pocketbooks and it will have a negative effect on economic growth in 2023: Draglation.
Also, once again, to keep the party in power in power, the Fed will begin to lower interest rates in the lead up to the 2023 U.S. Presidential Reality Show®.