There’s a propaganda campaign taking place right now.
There are powerful people behind it.
The aim is clear.
It’s about the transfer of wealth.
And this transfer is only going in one direction — out of your pocket and into the pockets of the banking elite.
Here’s how it’s happening…
Here’s the propaganda from Bloomberg:
‘Deflation, deflation, deflation. It was the doomsday mantra of 2014, and nowhere was it sung louder than in growth-starved Europe. As of just a few weeks ago, economists surveyed by Bloomberg News were convinced 2015 would be the first year since 2008 that no country saw annual deflation. No longer.
‘Following a month marked by a further collapse in oil prices, Syriza’s election victory in Greece and disappointing euro-area price data, economists are back to whistling the deflation tune.’
It’s the same old story. They spin the yarn about deflation, as it gives them an excuse to pump out freshly printed money and keep interest rates at a record low.
Remember all the talk over the past few weeks about the US Federal Reserve raising interest rates this year? It won’t happen.
As this point from the same Bloomberg article notes:
‘Not officially on our list but still in the deflation danger zone is the United States: Bank of America Merrill Lynch forecasts a 0.5 percent average drop in U.S. consumer prices this year even as its strategists predicted "victory" in global central banks’ war on deflation in a Feb. 4 note.’
Does anyone really think the Fed will raise interest rates as long as it can use the fear of inflation to keep pumping out the cash? Thought not.
Proof that inflation is coming
The idea that the real threat is inflation and not deflation is something we’ve explained to members of our investment advisory, Tactical Wealth.
We’ve shown them example after example of how central banks and politicians will use the fear of deflation as an excuse to keep printing money.
The natural result is huge profits for the banking sector, as they issue more loans and charge more interest.
Along with this is the increase in power for elected politicians and bureaucrats as they bribe voters with more ‘giveaways’.
But what folks don’t realise is that the inflation leads to two other outcomes. It leads to a huge transfer of wealth from those who suffer from inflation (generally those on fixed incomes, savers, and wage earners — in other words, most people) to those who benefit from it.
Second, it leads to high or even hyperinflation.
That is beyond dispute. It happens time and again.
Over the past two weeks, we’ve shown Tactical Wealth subscribers a series of charts and tables proving our case.
We’ll show you one of those charts today. It’s from the Bank of England (BoE). The BoE has one of the longest records of inflation and deflation data. The chart we’re about to show you goes back to 1750.
This says it all:
Source: Bank of England
Click to enlarge
Following every period of deflation or low inflation, you’ll see a period of inflation. So the question is, why would today be any different?
Dealing with the devil
The answer is that it wouldn’t.
Despite the talk about rising interest rates, banking insiders still want to print money…lots of money.
But an article in the Financial Times yesterday offered some promise. The headline was ‘Life below zero interest must not become the new normal’.
Could it be that a bright light in the mainstream had decided to step out and criticise central bank policy? Yes. But not in the way it appears.
Yes, the editorial railed against low and negative interest rates. But the editorial suggested that:
‘Central banks should be given more expansionary targets, such as ambitious goals for inflation or nominal growth. Monetary and fiscal authorities can combine, either by financing deficits with money or through straightforward unsterilised transfers of cash to the public. These may appear like wild steps for a staid central banker to take but so too is charging depositors negative interest. If savers want normality to return, they should tolerate some abnormal steps to get there.’
Oh dear. It seems the best way to help an economy is to print even more money. And once printed, hand the freshly printed cash direct to the public!
We suppose that’s progress in one way. Rather than the banks getting the printed dollars, everyone would get them.
Of course, that’s not a solution at all.
The mainstream press is convinced that deflation is the biggest threat to the economy. So, they’re doing all they can to induce inflation.
History shows that never ends well. By embracing inflation, central banks are in effect striking a deal with the devil.
It’s something they’ll soon regret.