Thursday, June 26, 2008

Central Banking Tyranny: The Next Phase

You know the first phase. The central bankers took control over the gold supply.

And you know the 2nd phase. They severed all ties to a gold standard. This unleashed the ravages of inflation.

In the 3rd phase, they used slave labor, outsourcing, and technological advances to justify the inflation to the dumbed down public. They convinced everyone into believing something that walks like a duck and quacks like a duck is not a duck. And at the same time, they convinced the dumbed down public that anyone who talks about this duck is a quack.

For years there were arguments over whether or not there was any inflation as prices on most things have doubled over the course of 10-15 years. The real rate of inflation was somewhere between 4.5 and 6.5 percent. (Note that an inflation rate of just 4.6% leads to a price doubling every 15 years.)

One of their favorite lines of bull is the concept of "relative price changes". They say that if the cost of some goods or commodities goes up, and this increased cost is offset by decreasing costs elsewhere, then there is no inflation.

Sounds good doesn't it? Perhaps, until you actually think about it. You should, because that one single line of bull has been used to scam the middle class out of trillions of dollars in wealth.

The key phrase is "decreasing costs elsewhere". For this to make sense, you have to envision the central bankers out on the golf course trying to come up with ways in which to disguise the inflation. Relative price change was one of the scams they came up with. How is it a scam? To answer that we need to look at the mechanisms for price decreases:

1. Technology and innovation boosted productivity to the point where manufacturing costs could be lowered and we could all benefit from that. In theory anyway. But instead of us all benefitting, the central bankers said "hey, we can use this to disguise the inflation". ("Randolph, that's a great idea....", "Why thank you, Mortimer.") So they got richer and everyone else got poorer, despite all the innovation and creativity and technological advance. Great deal eh?

2. Outsourcing, offshoring, slave labor, prison labor, etc. This has been a huge cost reducer. But this has enough drawbacks and downsides as it is. Namely the longterm health of the nation. Michigan is becoming a model example of what outsourcing can do to an economy over the long term. But in addition to all the drawbacks and downsides, the central bankers had to go and add one of their own: Every time America sent jobs overseas, it reduced the price of some item. The central bankers then used that price decrease to say that there was no inflation! What a scam....

3. Destruction of organized labor. This ties into outsourcing a bit, but there is an additional point to make. The central bankers like to claim that wages aren't increasing, so there is no inflation. They say this over and over again. One of the reasons wages can't increase is because workers have little bargaining power. Both because of weak unions and because of outsourcing. So when the costs of food and energy go up, people just have to bend over and take it. They don't have the ability or organization required to demand higher wages. And that's fine with the bankers because they've got everyone believing inflation is at 2%.

Ok, so that in a nutshell is how they have been able to get away with Phase 3 for so long. The more research you do, the more you realize how the central bankers actually created the conditions I outlined above. They created the conditions which are having such a deleterious effect on this country, and they actually then turn around and use those same conditions as a means to try and cover up the inflation they create. Isn't it sadistic? It's occultic. But for whatever reason, few seemed to care as this Phase 3 was implemented over the last 35 years. The people have pretty much accepted 5-6% inflation as a fact of life. How they can accept this when it will completely destroy the entire economy eventually? That, I do not know. (Black magic? Science-fiction type mind control perhaps?) But anyway that isn't the real problem.

The real problem is that the central bankers are no longer content to stay in Phase 3. They are moving to Phase 4. For whatever reason, they apparently believe the cattle, err sheeple, are ready to be more than just sheared.

The money supply, the debt, the propaganda, the media compliance, it is all moving into overdrive. Real inflation rates are pushing 10%. In case you haven't figured it out yet, yes, the real estate bubble was the final key. This was what they needed to create the facade of normalcy and cover up the true rate of inflation. They are going to use the falling value of real estate to try and claim that will somehow offset the inflation, and then use that as an excuse to say that all the money they are printing is not causing "excessive" inflation. How they are going to explain it exactly, I have no idea. Because it's complete gobbledegook. But gobbledegook is what they've been feeding the public all along. This is merely the next logical step. At any rate it does not matter how absurd their actions are, because the media will do their best to convince everyone that the central bankers are heros. At this point we're pretty much living the real life version of Idiocracy anyway, so I doubt they will have a difficult time convincing the general public to go along with this, and to laugh at anyone who tells them how badly they are getting ripped off. Hell I wouldn't be surprised if by this time next year, they got half the population believing Osama bin Laden has 500 million barrels of oil packed into his caves, and that is why the price keeps rising.


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