Written by Jeff Nielson Monday, 26 November 2012 14:21
Every year it’s the same “song and dance” from the U.S. propaganda machine. Right after the “Black Friday” post-Thanksgiving shopping-orgy in the U.S.; the numbers will be twisted to supposedly show that the U.S. retail sector is strong-and-healthy. That’s immediately followed by a rousing chorus of “happy days are here again.”
Then, once the dust settles after the holiday shopping season (and few of the Sheep are paying attention), it will quietly announce another disastrous year for U.S. retailers. What is so pathetic about this sham is that not only does this song-and-dance never change, but it’s all based upon the same transparent lie.
That lie concerns inflation. All “inflation” is produced by the money-printing of bankers. Indeed the term itself originated as short-hand for “inflating the money supply”; which is precisely what all money-printing does. However, that topic has been covered previously for interested readers.
Where inflation closely relates to retail sales is that any/all retail sales statistics are only relevant if inflation is totally stripped-out of any calculation. Reporting that consumers paid higher prices for goods tells us absolutely nothing about the health of U.S. retailers – which is the raison d’etre for this statistic.
Instead, the propaganda machine does precisely the opposite. Not only does it refuse to subtract inflation out of its “retail sales” calculation; but it refuses to even acknowledge its perversion of this statistic when it reports its data.
Here it’s important to note to readers that when I use the term “inflation” that I’m referring to actual inflation in the real world, and not the hyper-absurd U.S. “consumer price index.” One could write an entire book about how the U.S. government has systematically severed all ties between this statistic and the real world, however a single anecdote will suffice.
In the same month (this summer) that the World Bank was reporting global food prices soaring at an annualized rate of 120%, and Asian governments were meeting to discuss “the global food-price crisis”; the U.S. government proclaimed that inflation in the U.S. was (literally) 0%.
Zero percent inflation in the U.S.; 120% inflation in “the world.” You do the math.
Here another important point must be made. More than ever food-price inflation is “inflation.” Obviously for the billions of people around the world living in poverty and near-poverty, that reality has always been totally apparent. However, for the first time since the Great Depression that Truth has migrated to the West.
One in six Americans must now subsist on government “food stamps” in order to feed themselves properly(?). Tens of millions of other Americans struggle barely above that threshold. This is the inevitable result of the more-than-50% decline in wages for the Average American over the past 40 years, or (in other words) a greater-than-50% decline in their standard of living. Food-inflation is inflation.
By any conservative measurement, inflation across the West now rages somewhere between 10 – 20%. Here even the eminent John Williams of Shadowstats.com is guilty of failing to fully factor-in this reality in his own calculation of the (real) U.S. inflation rate. Mr. Williams only assigns food prices an ordinary weighting in his own inflation calculation, when (as I just explained) food-inflation must now be over-weighted in any inflation calculation.
Written by Jeff Nielson Tuesday, 20 November 2012 13:19
In Part I and Part II of this series, readers were presented with two dimensions of the great Silver Paradox. Despite having the best investment fundamentals of any commodity today, and arguably the best fundamentals for any commodity in history; silver hasn’t been so under-produced since it was discovered in the New World nearly 600 years ago, and it has never been so under-owned.
Along with establishing that silver is under-owned (by a factor of at least ten) and under-produced (by at least a factor of two); we also saw it conclusively established that silver was grossly under-priced. As we will see in this installment, it is the relentless suppression of the price of silver which is at the root of silver being both under-produced and under-owned.
Much has been written on this subject previously, by myself and others. However, any discussion of price-manipulation in the silver market must begin with the relentless sleuthing of noted silver authority, Ted Butler. It was his shocking discoveries in the silver market which originally attracted the attention of small numbers of far-seeing Contrarians, as well as other commentators such as myself.
Among Mr. Butler’s revelations were the outrageous/absurd short positions in the silver market of a handful of bullion banks. Five of these banks hold approximately 80% of the global short position (year after year), in the world’s largest silver market (the Comex) – another smoking gun. Furthermore, the magnitude of these short holdings is grossly disproportionate to the size of short positions in any other commodity market – another smoking gun.
Even more outrageous, the largest of these short positions (held by JP Morgan) is always roughly twice as large as the size of the Hunt Brothers long position in the silver market; when they were charged and convicted of silver-manipulation. This goes well beyond a mere “smoking gun”, and a more accurate metaphor would be to refer to it as a Smoking Cannon.
The banksters tell us they are “hedging” for anonymous clients with these short positions, and the blind/deaf/dumb CFTC vacuously parrots that drivel. This excuse is nonsensical on many levels. Hedging is an activity done to protect an entity from a sudden, severe price-reversal (lower) in the market. However, as noted in Part I, relentless price-suppression in the silver market had already taken the price of silver to a 600-year low (in real dollars).
Precisely what sort of “sudden, severe reversal” were these banksters hedging against with the price of silver already at a 600-year low? Silver priced below $4/oz was one of the most one-way bets in the history of commodities. Any objective analysis of that market would have indicated that silver clients required much less hedging than in any other commodity market – not much, much more. This multiplies the perversity of the grossly disproportionate short position, and totally negates the lies of the bullion banks.