Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Gold Price Trend Forcast to End September 2019 - Video - 25th June 19
Today’s Pets.com and NINJA Loan Economy - 25th June 19
Testing the Fed’s Narrative with the Fed’s Data: QT Edition - 25th June 19
What "Pro Traders" use to Find Profitable Trades - eBook - 25th June 19
GDX Gold Stocks ETF - 25th June 19
What Does Facebook’s LIBRA New Crytocurrency Really Offer? - 25th June 19
Why Bond Investors MUST Be Paying Attention to Puerto Rico - 25th June 19
The Next Great Depression in the Making - 25th June 19
The Bad News About Record-Low Unemployment - 24th June 19
Stock Market New High, but…! - 24th June 19
Formula for when the Great Stock Market Rally Ends - 24th June 19
How To Time Market Tops and Bottoms - 24th June 19
5 basic tips to help mitigate the vulnerability inherent in email communications - 24th June 19
Will Google AI Kill Us? Man vs Machine Intelligence - 24th June 19
Why are Central Banks Buying Gold and Dumping Dollars? - 23rd June 19
Financial Sector Paints A Clear Picture For Stock Market Trading Profits - 23rd June 19
What You Should Look While Choosing Online Casino - 23rd June 19
INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - 22nd June 19
Here’s Why You Should Drive a Piece of Crap Car - 22nd June 19
How Do Stock Prices React to Fed Interest Rate Cuts? - 22nd June 19
Gold Bull Market Breaking Out! - 21st June 19
Post-FOMC Commentary: Delusions of Grandeur - 21st June 19
Gold Scores Gains as Draghi and Powel Grow Concerned - 21st June 19
Potential Upside Targets for Gold Stocks - 21st June 19
Gold Price Trend Forcast to End September 2019 - 21st June 19
The Gold (and Silver) Volcano Is Ready to Erupt - 21st June 19
Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls - 21st June 19
Silver Medium-Term Trend Analysis - 20th June 19
Gold Mining Stocks Waiting on This Chart - 20th June 19
A Key Gold Bull Market Signal - 20th June 19
Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - 20th June 19
Investing in APPLE (AAPL) to Profit From AI Machine Learning Stocks - 20th June 19
Small Cap Stocks May Lead A Market Rally - 20th June 19 -
Interest Rates Square Minus Zero - 20th June 19
Advice for Financing a Luxury Vehicle - 20th June 19
Stock Market Final Blow Off Top Just Hit… Next Week Comes the FIREWORKS - 20th June 19
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

US Fed and Mainstream Media’s Moronic Statements On The Whole Foods Buyout

Companies / Corporate News Jul 06, 2017 - 09:01 AM GMT

By: Jeff_Berwick

Companies

It’s already bad enough we live in a world overpopulated by idiots. Worse, they are often in charge of ‘the monetary system’ and even head up ‘the media’! Luckily for tomorrow, entrepreneurs are busy developing a decentralized crypto-monetary platform for a money that nobody can control, and an alternative media, of which we are part.

One recent article encompassed precisely the unnecessity of the stupidity of central bankers and their mainstream financial media lapdogs.


The article was entitled, “Amazon cutting prices at Whole Foods will not cause deflation.”

The author was responding to a quote from a Fed official, Charles Evans, who claimed the merger would result in lower grocery prices.

Naturally, technological innovation and other types of productivity enhancements bring falling prices, which can ultimately be construed as a mild type of deflation.

But that is good news and doesn’t call for a policy to offset it! We all look for deflation when we go shopping. Evans doesn’t shop, apparently. He sees this as a bad thing, something that may make it harder for the central bank to achieve its 2% “inflation target”! Heaven forbid!

In this central banker’s view, falling prices produce unemployment, which leads to more falling prices, then more unemployment in a vicious circle like what happened in the 1930’s. This is the debt-deflation spiral formulated by Irving Fisher and later Keynesians, typically in defense of why we need to have a central bank, or why we need to have a policy of constantly rising prices.

In the typical Keynesian central planner's playbook, rising prices create the opposite: growth!

You can recognize a Keynesian instantly by whether or not he or she believes that they can create growth with the printing press. Many will regardless try to obscure this assumption in their theories, as if they know it is an inherent weakness. As Evans’ critic, and central bank sympathizer, put it in his article: "prices rising modestly [over time] encourage both households and corporations to spend and invest money now.”

He agrees with Evans on this; this is what many people believe today, including those employed by Wall Street.

Like typical Keynesians, however, none of them appreciate the trade-off between consumption and investment. If prices are generally rising, that means the value of money is generally falling, which encourages households and business to consume at the expense of investing now.

But, you can’t increase consumption and investment simultaneously! Sure, both can be considered as “spending” of money quantities, but tell it to the Keynesians constructing the GDP accounts.

That’s not the issue here. They believe price rises engages the “animal spirits.” What is really happening though is that by printing money and lowering interest rates they are encouraging consumption at the expense of saving, and replacing investment by the public with investment from the bank’s printing press directed by Wall Street, government, and the banking cartels.

To really understand all the fallacies inherent in that worldview is to understand the gold story and now the emerging crypto story. Ultimately, the weakness in the Fisher-Evans view is that they think the debt-deflation spiral, like all economic depression, is brought on by an inherently unstable and unbridled free market capitalism in the post-industrial age.

But let me tell you something else that started to become apparent in the post industrial age in the West: central banking and their unnecessary management of economic systems! Tulipmania, South Seas, the Mississippi bubbles all occurred in the era of central banking alongside western industrialization.

I mean, forget about the academic fact that indexes like the CPI are fallacious from the get-go because the value of money does not drop uniformly, and the weightings and baskets in the real world always change. Always, always, always, day to day. Their chained indexes and all the other statistical measures in the world will never capture the dynamic nature of subjective whim.

Not only that, but their underlying assumption is that money, and hence prices, should be stable in the first place, or that if not, they should know exactly how stable it should be, not the market.

The Austrian economists have shown that it is this fatal conceit and the interference in money quantities and the rate of interest that bring about the boom-bust cycle to begin with, as well as the ultimate depreciation in the value of money, which comes with it the occasional and sudden drop in confidence experienced in decades like the seventies, the mid-thirties, or more recently.

That is, it is the government supported and centralized system of fractional reserve banking that brings all the recessions and instabilities in the financial climate. In fact, this is even the big point that the movie, The Big Short, overlooked in putting the blame on the banksters and their greed in creating collateralized obligations and default swaps. The problem was right there, the movie even portrayed it but only in passing: it was the government guarantee underlying them!

I can’t say that by ending this system we would end all financial crises, but surely we would end the large ones that have become characteristic to western civilization in the last 100 years.

Regardless, it is in the aim of trying to achieve growth through the printing press and by trying to stabilize the financial and economic instabilities brought about by this attempt that we get the boom-bust cycle and the inflationary outbreaks that the central planners claim to exist to fight.

To fool Americans about this has only required a public education to get the message across that without your government saving and investing and lifting prices for us, we would be poor.

The dumbing down of America could not be more evident than it was by reading one of the few criticisms ushered in by ‘the media’ against Evan’s pronouncement and worry about this. No need to worry, said this author, the Amazon Whole Foods merger will not cause prices to fall! And we are all saved as a result, because prices won’t fall! We can all agree that prices won’t fall.

Central banks and Keynesian economists have been obfuscating the real meaning and cause of inflation for decades. Because, as Henry Ford once said, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

To see how the Federal Reserve itself is a scam set-up to impoverish nearly everyone at the expense of a few, watch this video.

The monetary system is run by idiots and it is reported on by idiots! It’s no wonder your average person has no clue about money, finance and economics!

Stick with us here at The Dollar Vigilante. Through our lens of free market, anarcho-capitalist Austrian economics we can see through all the stupidity. And, it’s paid off for subscribers, earning them 99% gains in 2016 in gold stocks and more than 100,000% gains since 2011 in cryptocurrencies (click here to subscribe)!

Strange, with a track record like that you’d think we’d be on every mainstream financial channel and publication. Could it be they don’t want you to know?

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2017 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules