And they say there’s no inflation...

The powers that be tell a lot of lies. But they do it so brazenly and so often that their lies come to be accepted as the truth. One of the things they lie about is inflation, or the supposed lack thereof.

They’re covering their butts. Inflation is a sign of failure. Their failure to “manage” the economy, Adam Smith’s invisible hand not withstanding. Nowadays, central bankers are pretty much all Keynesians or neo-Keynesians. Having received their training from an earlier generation of economists and bankers who lived through the Great Depression, they all fear deflation. America’s central bank, the Federal Reserve, actually has a goal of two percent annual inflation as if it’s a good thing that the dollar you hold in your hand today would be better being worth 98¢ a year from now. Obviously, a bunch of super geniuses.

In their heart of hearts, they fear and hate deflation so much that they think that if a bit of inflation is good, a bit more of it would be better. But they know that the great unwashed aren’t as smart as they are. Joe Sixpack maybe lived through inflationary times in the seventies and perhaps has heard about hyperinflationary Weimar Germany or Zimbabwe or current-day Venezuela. So the powers that be lie about inflation and use bogus numbers. The Consumer Price Index has fudged the numbers for two generations now using hedonics to consistently understate the true inflation numbers, institutionalizing the deceit through both Republican and Democratic administrations. It is possible to find more accurate tallies of inflation, but you have to go looking for them (The Chapwood Index and Shadow Stats for instance).

But we have anecdotal evidence all around us. For example, I do some of my shopping at a dollar store. Sure, they have lots of cheap plastic crap there, but they also are a great place to buy household cleaning supplies, dish soap, and other basic consumables.

I’ve long bought alkaline batteries there.

AA’s at four for a buck. What a deal. Until my most recent purchase:

Okay, maybe not as annoying as Toblerone’s marketing fiasco, but you get the idea. Effectively, a 33.3% price increase.

Inflation affects us all.

If you pay attention, you’ll notice hints here and there that the powers that be have plans for more inflation. Trump’s recent Bitcoin tweet has been widely mocked, but occasionally you’ll find someone going full-FUD and not only endorsing it but going further, such as this MarketWatch piece (hysterically wrong about Bitcoin and crypto in general) which all but embraces Modern Monetary Theory, a recipe for higher inflation.

Cryptocurrencies are of course a possible way to protect oneself from the ravages of inflation, but gold and silver have a long track record.

Silver stackers who are familiar with Commitment of Traders’ Reports and the COMEX market’s manipulation of silver prices should check out Alasdair Macleod’s latest piece. If his analysis is correct, silver may getting be ready to explode.

Disclaimer: This should not be construed as financial advice. I am not a registered financial advisor; I don’t even play one on TV. Do your own due diligence. Batteries not included. Objects may be larger than they appear in mirror. Some assembly required. Do not taunt Happy Fun Ball.