Deflating Inflation

Thu, Oct 13, 2011 - 10:08am

Mrs F returned from a trip to Target yesterday, full of vim and vigor regarding the prices of everything she had to purchase. I explained to her that the U.S. government deliberately understates the true rate of inflation and then proceeded to explain why they do it. It then dawned on me that many of you could use a refresher, as well.

It's quite simple, actually, but first you need some background. You've likely heard me mention the economist, John Williams, before. If not me, then you've certainly seen Santa make reference to him. John's site is:

On his site and through his subscription service, John goes through the painstaking process of re-calculating "official" U.S. government statistics based upon the methodology used when the statistics were originally created. John was interviewed by Glenn Beck back on Tuesday and here is s link. The interview is brief but, if you're unfamiliar with John's work, this will help get you up to speed. (And please don't fill this thread with comments about Glenn Beck. I like Glenn but it's the message, not the messenger. Got it?)

Now that you know how government statistics have been reformulated and manipulated over time, you need to know why. The answer is quite simple, really. MOPE. Perceptions must be "managed" in order to keep the entire Ponzi afloat.

Think of how many times you hear total U.S. debt expressed as a percentage of GDP. How many times have you heard pinheads like LIESman tell you that "overall U.S. debt, when expressed as a percantage of GDP, is not that big of a deal. In fact, it's quite low. No problem here!"

Think of how many times you've seen our esteemed chief executive or one of his minions come out to trumpet the "outstanding jobs growth and unemployment rate". "Yes, 9% is a high number but, historically, it's not too high to be overcome".

Most importantly, think of how many times you've heard it declared that "inflation remains relatively tame". "The CPI was this but ex food and energy it was that" and all is well. But yet you head off to the market like Mrs F and you see that milk, which a few months ago was $3.19/gallon going for $3.69/gallon, and you wonder how this can be true.

Of course the answer is, it's not true! It's all BS! Think about the inflation numbers specifically. If the true rate of inflation was allowed to be published, would the 10-year note be trading at a yield of 2%? Would the 30-year bond be trading at 3%? Of course not! If inflation is really 10%, the real (inflation-adjusted) annual return on the 10-year note is -8%. Over the life of the note, the holder sees their purchasing power guaranteed to diminish by about 2/3. What kind of mindless fool would buy this? NO ONE! If the actual rate of inflation was accurately disseminated, the yield on the 10-year note would have to soar to 12%, maybe even 15% just to attract buyers. Double-digit interest rates would make servicing the current debt virtually impossible. The overall debt and deficit would immediately soar to truly unsustainable heights and the Great Government/Financial/Military Ponzi would unravel almost overnight.

So, the statistics must be distorted and spun in the government's favor. There is no other option.

However for you, my dear reader, there are options. Understand that what you've just read is true and plan accordingly. This system of lies and deceit will, eventually, fail. In the meantime, you will have accumulated extra hard assets. Everything from land to rice to gold and silver. You should accumulate these things now before they become too expensive to be purchased in bulk.

Shakespeare once wrote: "Truth is truth. To the end of reckoning." And so it shall always be. Prepare accordingly. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Oct 13, 2011 - 11:23pm

Thank you moderator.

Thank you moderator.

Oct 13, 2011 - 11:27pm

Living off the grid

I was just passing by as I was finishing up this great article that is pretty much on topic with Turds Post.

Living off the grid

If the information that I post on a daily basis offends or is not to one liking please speak up and I will stop and we can talk about KWN articles all day until silver reaches $50 many months from now.

Makes for a very boring blog, when one wants to continue to talk metals 24/7.

Politics, Economics, and Financials are all one therefore these sectors need to be watched and reported on, daily.

After all someone must report the real news, as the ones that are being paid to do so fail on a daily basis.

You have a nice day now, and please keep the personal attacks at a minimum, as we are adults here not 16 year olds playing on Facebook.

( Look ma not one F bomb )

Oct 13, 2011 - 11:27pm

Journey to the Center of the Mind

Journey to the Center of the Mind
Oct 13, 2011 - 11:30pm

Hey DPH........i see you hiding in the corner..

come on! you know it's a little funny! buzz buzz.

Oct 13, 2011 - 11:32pm

Guns, Germs and Steel Parts 16-18

That's all folks, hope someone enjoyed the documentary.

Guns, Germs and Steel Part 16 of 18
Guns, Germs and Steel Part 17 of 18
Guns, Germs and Steel Part 18 of 18
Eric Original
Oct 13, 2011 - 11:40pm

Brewers Win!

Thanks Jobu!!

Oct 13, 2011 - 11:46pm

False flag events...

can happen at all levels... sometimes even on small messages boards...



Oct 13, 2011 - 11:51pm

been following this youtube channel (very smart guy!)

very informative on the Canary Islands volcanic activity

Video unavailable
Oct 14, 2011 - 12:01am

Jamie Dimon, cheat???? No way.....c'mon...

Legalized Fraud

And if all others accepted the lie which the Party imposed – if all records told the same tale – then the lie passed into history and became truth ("1984," George Orwell)

"JPM reported $1.02 of earnings per share, ahead of the Wall Street Einstein consensus expectation of 92 cents. HOWEVER, 29 cents - or 28% - of the reported number included a non-cash accounting gain which resulted from JPM exploiting a very controversial accounting rule that lets a bank essentially create income when the market value of its outstanding debt goes down in value. Without this fictitious income, JPM would have reported 79 cents, well short of expectations. Please read that again if you don't believe that you really read what I just wrote. The truth is that if pour through JPM's earnings results with a critical eye, you'll see that underneath this accounting fiction that JPM's underlying business fundamentals are deteriorating....

....The fact of the matter is that JPM's accounting presentation is legalized fraud. The reporting of it by the financial media - which is financially supported by the advertising and promotional revenues paid by banks like JPM - is outright Orwellian. Our entire economic and political system is on the very frightening slippery-slope toward the dystopic vision presented by writers like Orwell, Rand and Huxley."

Mudsharkbytes Maryann
Oct 14, 2011 - 12:03am

RE: coffee @Maryann

There is a much cheaper way to provide yourself with quality coffee - roast your own green beans.

Coffee is about half the price if you buy it green - lasts a LOT longer - is always fresh, and it's both easy and fun to roast it yourself.

I started a thread about this a few months ago - it's been a while since anybody looked at it but check it out if you're interested.

Oct 14, 2011 - 12:04am

Food for Thought

Anthony de Mello - Awareness pt.41&42 addictive love & more words
Oct 14, 2011 - 12:11am

Regarding "Opting Out" of the Federal Reserve System

Regarding opting out of the Federal Reserve System,

while it may be true that a restricted endorsement on a financial instrument (such as a personal cheque) may​ allow you to redeem said instrument in "Lawful Money" (barring any subsequent law negating that portion of the US Code), you must be aware that one of the instruments of Lawful Money is a U.S. Treasury Bond.

So more than likely your stack of FRN's would be redeemed in U.S. Treasuries, which, of course, will in turn be redeemed for FRN's.

So you probably cannot get out of the cycle, because they don't want you out of the trap. It's a catch-22 we'll be caught in until the Fed closes for business.

bob smith ewc58
Oct 14, 2011 - 12:12am

Great post ewc58. Thanks!!! This is the kind of stuff that makes this website the best. Keep up the very good work. Please do your best to post more. You are great.

Oct 14, 2011 - 12:18am

Mono Atomic Gold

This gold is monotonic (with molecules in a high spin state), and looks like baking flour. It greatly enhances the pineal gland, and a similar substance of iridium greatly enhances the pituitary gland. Regular yellow gold or gold salts will cause the hair of the subject to fall out, but white gold is safe to ingest. After ingesting the white gold for over 9 months, a subject will become extremely psychic and disease free. The person’s body will also glow. Whether the Illuminati discovered this white gold, and have been using it secretly when their adepts went into hiding for months of long training, or whether they were only playing with substitutes we cannot say. (By the way, some occult groups groom slaves in the craft for 24 hours a day for a year.) At any rate, in recent years a man named David Hudson, who is of the Holy Blood line (13th Illuminati Bloodline, of the de Guise lineage), discovered and patented white gold. He named the white gold Ormus, which is the occult name for the Prieure de Sion.


I told you 'they' love gold too - its wisdom (it is strengh). Maybe that's why we are a bit intelligent(being modest) too - and in tune with what's going on? We may not be ingesting it, but, we all touch, live and are surrounded by it on here:)


Maybe Mr. Jobs ( i freakin billionaire) was ingesting it, overloaded up on it, ruptured his liver (got a liver transplant)... and just kept still pumping it in. I know. His body didnt glow... but his logo does. Just crazy talk.


So anyway - this is first for me - mono atomic gold and ingesting it - lets shred ours down and sprinkle it on our next spaghetti and meat balls dish.



Oct 14, 2011 - 12:20am

Coast to Coast AM

Schedule for 10.13.11 - 10.20.11

Thursday October 13, 2011

Hosted by George Noory
Guest(s): Deepak Chopra, Leonard Mlodinow, Ronnie Rennae Foster, Laura Lee Mistycah

Caltech physicist Leonard Mlodinow and spiritual leader Deepak Chopra face off in a passionate but respectful debate, addressing some of the most fundamental questions that have intrigued humanity for hundreds of years, including how the universe began, where life comes from, and whether or not Darwinism fully explains evolution.

First Hour: 'Ghostbuster gals' Ronnie Rennae Foster and Laura Lee Mistycah talk about hauntings, possessions, and paranormal activity.

Oct 14, 2011 - 12:21am

Now that was a trollin...

Damn. I come back and all the comments are gone and its quite!! Why didn't we let that troll lurk around a bit longer? That was interesting to watch! Remember, trolls can be nice too! See definition 1c of urban dictionary lol. Props to the boys on the leaderboard for calling him out early before he gained any traction. Vigilance is Warranted.

Oct 14, 2011 - 12:23am

November Fifth Is Bank Transfer Day

Remember, remember, the fifth of November, because that's when "Bank Transfer Day" is happening. By that date, all participants will have closed their big retail bank accounts and put their money in a local non-profit credit union or local or regional community bank.

Bay of Pigs
Oct 14, 2011 - 12:27am

Hey bob

or whatever your name is, please quit doing this.

bob smith tyberious
Oct 14, 2011 - 12:29am

Peak Oil?

Lindsey Wililams

I completely agree with Lindsey Williams premise and exposure of the "Peak Oil" nonsense.

What has to be remembered that just as the Rockerfeller's control money and banking, they also control oil. These are the two monopolies that rule the world. I don't give any credence to the peak oil concept or theory whatsoever, in view of these facts. There is plenty of evidence to suggest that there is more oil than we can ever use up in a thousand years.

If you can get through Lindsey Williams tedious presentation, it's worth a listen once. I can't stand much more as it takes him a half hour to get to the point.

Eric Original
Oct 14, 2011 - 12:32am

Anybody Else Hoarding Light Bulbs?

Just started a forum thread on the subject.

Any and all opinions welcomed! "/

Oct 14, 2011 - 12:39am

Overnight #2

since last nights October 12th Full Moon that Gold is hovering at the 1,666 mark for a few hours over the witching hours...


If 'they' like it in three's, then probably overnight tomorrow again?


Fried(e)... it is what it is. I don't know how relevant this information is, i'm just observing and sharing what i can...

metalhead Eric Original
Oct 14, 2011 - 12:44am

I've been hoarding

I've been hoarding incandescents for about a year. By my estimation, I have approximately a ten year supply.

I noticed last week that they're all but gone from the shelves at Wal Mart. Where they once had an entire section, only a single shelf remained. And I left the store with most of that. I'm going to try to find somewhere online where I can buy in bulk for one last binge.

I still can't believe it's come to this. Hoarding lightbulbs. Utter madness.

Oct 14, 2011 - 12:45am

light bulbs

When the grid goes down, only those with generators, batteries and solar systems will have light. During the crash, what municipalities will be able to pay their bills, and who will they pay them to.

Organic agriculture was soon after mandated by the Cuban government, supplanting the old industrialized form of agriculture Cubans had grown accustomed to. Relocalization, permaculture, and innovative modes of mass transit had to be rapidly developed. For a time, waiting for a bus could take three hours, power outages could last up to sixteen hours, food consumption was cut back to one-fifth of their previous levels and the average Cuban lost about nine kilograms (twenty pounds). Although starvation was avoided, persistent hunger, something not seen since before the Cuban Revolution, suddenly became a daily experience, and initially, malnutrition in children under five was evident after just a few weeks of these food shortages.

Slide [7] I've described what happened to Russia in some detail in one of my articles, which is available on I don't see why what happens to the United States should be entirely dissimilar, at least in general terms. The specifics will be different, and we will get to them in a moment. We should certainly expect shortages of fuel, food, medicine, and countless consumer items, outages of electricity, gas, and water, breakdowns in transportation systems and other infrastructure, hyperinflation, widespread shutdowns and mass layoffs, along with a lot of despair, confusion, violence, and lawlessness. We definitely should not expect any grand rescue plans, innovative technology programs, or miracles of social cohesion.

Oct 14, 2011 - 1:00am

Nearly as shocking as the idea of Jamie Dimon cheating

I did said "nearly" didn't I?

FBI Insider: Obama Administration Likely Manufactured Dubious Terror Plot

"No information about plot exists within FBI channels"

Then let Judge Napolitano lay down the law on this latest moronic Owebombya attempt at starting what, the Peace Prize winner's 8th war or something?

Video unavailable
Rear Flank Downdraft
Oct 14, 2011 - 1:04am

I Dare You to Hold a Lil' Debbie Oatmeal Cream Pie... your palm, lest you be dumbfounded by the ridiculousness of its diminutive size.

Or a Reese's PB cup. Set one beside a quarter.....or an ASE. These foodstuffs are now barely large enough to qualify as lubs amongst the teeth (I sure miss Sniglets, BTW).

Had to walk on past a small $7.00 pumpkin today too.

Not long ago, I was called to pick up my fave Greek salad at Panera, and went to sit and enjoy. On the first scoop, my fork clinked the bottom of the bowl a bit early, I thought. I could swear there's a deceptive convex rise constructed in the center of the bowls now. But the bowl seemed larger in diameter. Clever. Gives the appearance of more product.

I'm sure it doesn't end there.....

Oct 14, 2011 - 1:09am

Mallomars, OMG...

are now tiny! They've already been shrinking for years now.... You won't believe this year's version.

tyberious Rear Flank Downdraft
Oct 14, 2011 - 1:10am


That explains how companies have been able to avoid margin compression.

Oct 14, 2011 - 1:27am

Product shrinkage = margin compression dodge, good point...

But can we please focus on what is truly important here? At this rate, by 2013 a Mallomar is going to look like a freakin' Toll House morsel!

To quote Dave from Denver: Armageddon was yesterday - Today we have a serious problem

Oct 14, 2011 - 1:37am

that's if...

there are still stores that sell them and at what price! 100$ for a mallomar, yikes!

Might wanna steal the recipe and make your own, I did it with KFC :)

Oct 14, 2011 - 1:44am

Uh-oh, not liking the sound of this one bit...

Foreigners Dump $74 Billion In Treasurys In 6 Consecutive Weeks: Biggest Sequential Outflow In History

Submitted by Tyler Durden on 10/13/2011 - 18:06

Over the weekend, we observed the perplexing sell off of $56 billion in US Treasurys courtesy of weekly disclosure in the Fed's custodial account (source: H.4.1) and speculated if this may be due to an asset rotation, under duress or otherwise, out of bonds and into stocks, to prevent the collapse of the global ponzi (because when the BRICs tell the IMF to boost its bailout capacity you know it is global). We also proposed a far simpler theory: "the dreaded D-day in which foreign official and private investors finally start offloading their $2.7 trillion in Treasurys with impunity (although not with the element of surprise - China has made it abundantly clear it will sell its Treasury holdings, the only question is when), has finally arrived." In hindsight the Occam's Razor should have been applied. Little did we know 5 short days ago just how violent the reaction by China would be (both post and pre-facto) to the Senate decision to propose a law for all out trade warfare with China. Now we know - in the week ended October 12, a further $17.7 billion was "removed" from the Fed's custodial Treasury account, meaning that someone, somewhere is very displeased with US paper, and, far more importantly, what it represents, and wants to make their displeasure heard loud and clear...."


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