Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bank of England Inflation Fraud Holds Steady at CPI 2.7%, RPI 3%, and Real 3.9%

Economics / Inflation Dec 19, 2012 - 12:42 AM GMT

By: Nadeem_Walayat

Economics

The mainstream press played its part in perpetuating the Government's debt / money printing arm's (Bank of England) continuing inflation fraud with matter of fact coverage of today's CPI inflation rate holding steady at 2.7%. The reality is that the Inflation fraud is at the very core of why the general population is continually forced to work ever harder and to accumulate ever greater amounts of debt (slavery) all to just stand still in terms of being able to cope with the real cost of living increases that are NOT reflected by official CPI.


There Never Was an Inflation Target

The Bank of England for 20 years has perpetuated economic propaganda on the British people by way of targeting 2% CPI Inflation (accumulative), something that it has FAILED to achieve 97% of the time and this even during a period when Britain has been in an economic depression for FOUR YEARs, against which clueless academics and vested interests have been warning of the threat of deflation when in reality there never was any threat of deflation.

During Britain's economic depression CPI Inflation has averaged 3.5%, RPI 4.2%, and Real Inflation has averaged 5.6% per annum.

The Exponential Inflation Mega-trend

Whilst the mainstream press and academics WHOLLY focus on the annual CPI Inflation graphs, the reality is that of an exponential inflation mega-trend as illustrated by the below graph that better illustrates that despite the British economy having been in economic depression for the past 4 years, yet it has still suffered inflation of 15% and so called deflation was in fact a mere blip into mid 2009 as I warned at the time.

UK CPI Inflation Index

There is No Debt Crisis!

The truth is contrary to everything you hear that Britain does NOT have a Debt Crisis, instead it has ALWAYS had an INFLATION Crisis as the value of debt is always inflated away. The reason why there cannot be a debt crisis is because the government can always print more debt / money. Most people have been successfully brainwashed by relentless propaganda to believe that Inflation is good and deflation is bad. Inflation remains the primary mechanism for eroding away the value of the deficit and all debt that governments of all political parties utilise to buy voters with at each general election. Inflation is the primary mechanism that the Elite utilise in the ongoing transfer of wealth from workers towards themselves. This transfer of wealth manifests itself in the debt that ordinary people service and the value of assets that are leveraged to Inflation, as fractional reserve banking and Bank of England QE in large part benefits the elite by INFLATING asset prices far beyond the consumer Inflation rates for assets such as stocks, bonds, and property, as more than 50% of Britain's assets are held by the top 5%.

If you want to protect your wealth then the only answer is to leverage yourself to the Inflation Mega-trend as covered at length in the Inflation Mega-trend ebook (FREE DOWNLOAD) that I seek to update as time permits on an ongoing basis. For instance ideally you want your income to be leveraged to inflation, such as in consistent dividend payment increasing stocks.

The Inflation Fraud

My recent article explained in depth the dynamics of money printing Inflation fraud (03 Dec 2012 - Bank of England Cancels Britain's Debt, Coalition Government Budget Deficit Crisis is Pure Propaganda), which the below graphic illustrates why not only deflation is not possible but also why inflation will continue to surprise the clueless academics and pseudo economists that most of the population are exposed to courtesy of the the cycle of Government deficit spending, debt printing, Bank of England money printing debt monetization programme that is feeding the exponential Inflation Mega-trend.

There is NO Free Lunch

Contrary to what you hear from the academics and the mainstream press, there is no free lunch! Money and debt printing by the government to buy votes has a consequence and that consequence is Inflation. The government then TAXES you on the rise in wages purportedly to compensate for inflation which ensures that ordinary people who do not fully understand the nature of the fraud have no choice but to accumulate debt just to stand still because the government is effectively TAXING the INFLATION i.e. your wage increases CANNOT keep pace with real Inflation PLUS taxes, because there is no free lunch, government debt printing and fractional reserve banking money creation has to be paid for by someone and that someone is not the next generation but THIS generation as I have been warning for many years and as illustrated by the Inflation Mega-trend ebook (FREE DOWNLOAD). This is why despite working hard for all of ones lives many people still find that they have a mountain of debt outstanding, because it is not possible for most people to pay down the debt. The system IS designed to turn everyone and everything into debt slaves.

It is much easier for Britain's savers to realise the ongoing inflation fraud because savings for several years now have failed to keep pace with even official inflation which the government then further TAXES at 20% and increasingly 40% as many more tax payers are being thrown into the higher tax bracket again due to a consequence of the INFLATION fraud.

The system comprising of Inflation plus debt plus taxes plus the state education, exists to ensure total control over the general population by the elite that my next in-depth analysis will take a detailed look at. Ensure you remain subscribed to my always free newsletter to get this in your email in box as well as a series of scheduled detailed forecasts for financial markets for 2013.

Source and Comments: http://www.marketoracle.co.uk/Article38123.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2012 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of three ebook's - The Inflation Mega-Trend; The Interest Rate Mega-Trend and The Stocks Stealth Bull Market Update 2011 that can be downloaded for Free.

Stocks Stealth Bull Market Ebook DownloadThe Interest Rate Mega-Trend Ebook DownloadThe Inflation Mega-Trend Ebook Download

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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 trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

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


Comments

ShonanTrader
19 Dec 12, 17:19
Schedule Dates

"as well as a series of scheduled detailed forecasts for financial markets for 2013."

Thank you very much for offering this Nadeem.

May I stretch my membership loyalty and ask for a rough draft of the schedule dates, or the first one at lest?

Thank you again,

Scott


Nadeem_Walayat
20 Dec 12, 00:05
Before Years End

Hi

I do my analysis in parallel rather than series, so likely it will be in a flood of articles in the last few days of the year.

The markets will follow 2 more related to Inflation, with focus on Gold and Stocks before year end and possibily US Dollar but the timeframe is tight for that.

Best

NW


Nadeem_Walayat
22 Dec 12, 08:41
Gold Forecast

Hi

Ive decided to complete and send out the Gold forecast first which should be posted Sunday/Monday.

Best

NW


Post Comment

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