The Truth About Inflation, Markets, and CPI

The popular media keeps us focused on nominal levels in the market, but not relative; this is important for Americans to understand. It helps hide the theft of American wealth that the Federal Reserve is perpetrating on the U.S. For example, take the trillions of dollars in 401k money that is locked into the market. Inflation is able to steal the future value of the retirements of Americans simply by printing more money. That would mean that the FED would have an incentive to put the country in positions that would stimulate this business...i.e the constant booms and bust they seem so helpless to have stop happening due to excesses in both directions with monetary policy.

When the FED raises rates and puts us into a recession where US Government Tax revenue is falling, the only alternative is to borrow more money from the FED to keep the engine running. This is the long term inflation business model the FED is engaged in. The inflation of our money allows them to transfer our buying power and value of real assets back to themselves by giving us money/credit at interest that they create out of thin air. The only way to pay the interest is to borrow more money at more interest this literally strips away 99.9999999% of all wealth generated over time through usury.

Simply put its a "ponzi scheme" designed to steal real wealth and its incredibly effective. Our inflation rate is not the CPI our government gives us to skew the numbers and mask the scope of the scheme, but is actually the M3 number that the FED has hidden from us which is the real rate of inflation.

Simply put the devaluation of your currency is the inflation rate of the Money Supply. Experts estimate this number to be around 15-20%. If you compound this number from the last market highs till now you will realize 80% of the market wealth was already stripped away before the market decline. And that's why all hard assets and commodities tripled against fiat currency valuation.

In my eyes the market is far cheaper than any out there actually realizes. Market values that are denominated in fiat currency must be valued based on the supply of fiat currency in all intertwined economies and benchmark to the value of a hard asset to truly grasp the price of the market.