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In the face of the Great Masquerade of Inflation, Bitcoin (BTC) is the only bulwark – Cryptocurrencies

Bitcoin (BTC), like gold, is a hedge against inflation. That is, it appreciates even faster than the price increase. He is a lifeline in the face of the inflationary tide. But where did the price increase come from? And the inflation figures presented to us, are they sincere or do they reflect a total distortion of reality?


Inflation in the parallel world of INSEE

Among the many indicators of the National Institute of Statistics and Economic Studies, the consumer price index is one of the most viewed indices. It is very important because it makes it possible to ensure that the purchasing power of the minimum wage, retirement pensions, etc.

But despite its great importance, the inflation index of INSEE is suspiciously very opaque. We don’t know much beyond the fact that prices over 300,000 products are measured every month in more than 30,000 points of sale located in around 100 major cities. The transparency stops there.

In this black box, the increase in the price of each product is supposed to be weighted in proportion to its weight in household consumption expenditure. In other words, the rise in the price of the baguette – the one you buy every day – will have more impact than the inflation of the ping-pong ball. All right, except we don’t know the weights. Worst, 90% of the list of prices studied is secret. This opacity makes it relatively easy to tamper with the figures without anyone finding fault …

We do know two or three things, especially the fact that we do not count rising house prices in inflation ! You read that right, the greatest purchase of a lifetime …

real estate prices France
Source: INSEE
The prices of old housing increased by 2.3 between the beginning of 2000 and the end of 2018 (2.6 in Île-de-France), and those of new housing by 2.1.

Here is how INSEE justifies itself on its site:

“The CPI does not include home purchases. Indeed, it is about investment, and the CPI is about consumption. Housing purchases do not constitute consumption, because they increase household wealth; unlike a good consumed, housing does not disappear with its use and can be resold. “

INSEE

Big anything. Go explain that to the new generations for whom it is impossible to become an owner and who are forced to live in a shared flat … Only the inflation of rents is taken into account by INSEE. But the charade continues because the distorting weighting of INSEE means that the share of rents only weighs 6.1% (2018 data) in his basket. To put it another way, INSEE assumes that the budget of all French people for housing represents only 6% of their expenses. But who spends only 6% of their income on housing?

We can also talk about the famous “innovation” and “quality” effects “. For example, under the pretext that the power of computers is increasing, according to INSEE, the value of a computer has been divided by 20 … In the imaginary world of INSEE, computers only cost about fifty dollars. euros!

In short, inflation figures are very far from the truth and it is for this reason that safe havens such as gold and Bitcoin have, and will increasingly have, the wind in their sails.

And in the United States?

The US statistical office, the “BLS” (Bureau of Labor Statistics), also takes an unreasonable number of prices into account in its calculation. More than 80,000 which have the effect, as in France and everywhere else, of hide reality in a muddled puddle of diluted data.

The BLS also uses the clearly biased techniques of INSEE discussed above. For example, it has been calculated that the price of a new car in the United States has fallen from $ 6,847 in 1979 to $ 27,940 in 2004. Using “hedonic adjustments”(The famous quality effect), the BLS calculated that the price of a new car had fallen from $ 6,847 in 1979 to just $ 11,708 in 2004.

Unscrupulous technocrats do not hesitate to simply change the way they calculate inflation ! The US government has therefore changed the calculation by 1983, as inflation approached 12% (year on year), before putting the hedge back into 1996 with the commission Boskin. All these changes each time made the inflation index a worse indicator of the real rise in the cost of living. It is estimated that the US government was able to save $ 700 billion between 1996 and 2006 thanks to Boskin’s accounting devices.

Note that the BLS also publishes an inflation index excluding certain prices deemed ” too volatile “Like food and energy … Either the two most important items of expenditure after housing. However, the US government is based on this biased index to calculate the revaluation of wages, social benefits, etc …

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And while the inflation rate calculated by the BLS between 2008 and 2012 was officially 10.2%, the Chapwoodindex.com website measured that inflation was 10% on the only year of 2012 in many large cities.

Price indices no longer adequately reflect the real loss of purchasing power of the masses. So even if retirement pensions or the minimum wage are indexed to inflation, the underestimation of numbers makes us poorer anyway.

Here are the ChapwoodIndex inflation figures which reflect the ambient inflation in the United States much more accurately:

The real inflation figures in the United States
Inflation rate calculated on the basis of only 500 products whose list is transparent

True annual inflation is between 5% and 10%. And not 1% or 2% as we would like us to believe. If it is no longer possible to raise children with one salary, as was still the norm not so long ago, it is precisely because inflation is much higher than what we are announced.

Inflation monetary knowingly orchestrated to which will be added the one related to the scarcity of raw materials. These have never really been missed so far. Which is no longer true for black gold … We have apparently crossed the peak oil in 2018 (bedrock and tar sands oil included).

Where does inflation come from and who benefits from crime?

The phenomenon of inflation is a trade-off between the amount of money available and the amount of things that can be purchased. Some speak of ” traffic speed To froth themselves with financial esotericism. But we can mainly summarize by indicating that inflation comes from an increase in the amount of money available, all things equal otherwise. Or by a scarcity of production, all things equal otherwise also.

Now that we’ve laid the groundwork, comes the question of how much money. Who decides how much money is available? These are the banks. These have set up a a system of monetary creation that could be described as a “Ponzian headlong rush”.

Banks, for reasons that we have explained in this article, are obligated to lend always more. This is necessary so that the system does not collapse under its weight. The biggest source of inflation in France is undoubtedly real estate (between 5% and 10% per year).

The government and businesses also borrow and therefore help inject money into the economy. But most of the money available comes originally from home loans. Loans including the amounts are increased year after year in order to maintain this absolutely essential inflation.

Indispensable for the State, which can then do artificially lower the weight of its debt through increased revenue. Indeed, the VAT, fixed rate on everything sold, increases as inflation rises).

But also for the owners and especially a few tens of billionaires. See how the European Central Bank, with its printing press, inflates not only the real estate bubble but also the stock market bubble. The stock market rises every time central banks activate the famous “Quantitative Easing”. The reason being that this money pouring out allows multinationals to borrow for buy back their own shares. Not to mention the reallocation of savings to the stock market casino for lack of available sovereign debt. (because bought back by the ECB via QE).

FED QE vs S & P500
Balance sheet of the FED vs US Stock Exchange (S&P 500)

We are the dupes of a system that benefits a small, hyper-rich caste drinking almost directly from the bottlenecks of central banks. The wealthy majority suffer directly from inflation as billionaires get rich without doing anything.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

The new generations are the big losers in this inflationary circus, but they can be reassured … History is very clear on the issue. A ponzi always ends up bursting with a redistribution of the cards to the key. And while waiting for the big night, Bitcoin, shunned by technophobic boomers, offers very good prospects for building up a wealth. By the time Bitcoin is worth as much as gold, its price will have multiplied by 50 … Don’t wait any longer to protect yourself from inflation. Invest in the best store of value of the 21st century.

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