Toxic and duplicitous.

What the Fed has been doing ever since Greenspan (the veritable “Patient Zero” of the current global $280T debt disaster) is very clever yet extremely toxic, as well as openly duplicitous.

Specifically, the Fed now prints over $120B per month (to buy $80B in unwanted Treasury bonds and another $40B in unwanted, toxic MBS [mortgage-backed securities] paper) with no apparent inflationary effect (despite the fact that inflation is defined by money supply) beyond its 2% “allowance.”

Such extreme money creation openly dilutes the USD to inflate away US debt with increasingly diluted dollars, now a desperate as well as deliberate Fed policy.[1]

It beggars the imagination that there IS NO imagination in the deep ranks of our Care Guardians. Those suckers are whistling past the graveyard and that’s ALL they’re doing. Whereas, Pilgrims, it’s Dutch Uncle time. Time for some relentless realist to announce to the country that the current political-economic-social “strategy” most closely resembles what you’d find in your freezer after a one-week power outage.

The duplicity of these financial gods is amply laid out in the article in the Notes below. The graphic therein showing how inflation is just defined away to get to the politically convenient result is beyond illuminating. If we still calculated the Consumer Price Index the way we did in the 1980s, inflation would be around 9% per that graph. But, “officially” it’s around 2% because of the way that the method of calculating the CPI has been fraudulently “revised.”

As Mr. Piepenburg shows, the inflation-adjusted return on a U.S. 10-Year Treasury would be/is very negative if we were to use the more (?) honest 1980s measure of inflation. This has the effect of making said Treasury instrument highly unattractive and making gold highly attractive. Who in his right mind would want to help the U.S. government finance its spending addiction on these terms? You see another reason here for the Fed’s lies. Somebody still buys those bonds — the Fed apparently — but for how long exactly? Powell must have Bernie Madoff on speed dial to help keep this shift show going.

Solzhenitsyn warned us to live not by lies but that is exactly how we live as a so-called nation.

[1] “The Fed’s Most Convenient Lie: A CPI Charade.” By Matthew Piepenburg, ZeroHedge, 3/10/21 (emphasis added).


    • robert on March 11, 2021 at 5:25 AM

    It will be quite interesting to see the  house of cards come tumbling down when the gold backed Russian and Chinese currency dominates the worlds markets . Next step will be the ever popular Mark of the Beast . Step up and get your Mark folks . Free food and wine for all ! 

  1. It’s amazing how much of America’s international dominance if from having the world’s reserve currency.  The whole arrogance-based sanctions regime depends on it.  And we think of America’s preeminence as being like the Rocky Mountains.  There and quite a long shelf life.

    Willy Nelson’s wife sewed him in a blanket one time when he came home drunk one too many times.  Then she worked him over with a baseball bat before packing up and leaving.  I don’t want such a violent change event for my country but there’s nothing written anywhere that the chance advantage of being a large industrial power untouched by WWII is for all eternity.  For now the world has to endure our astonishing arrogance and mourn our complete and total failure of vision to learn the lessons of totalitarian communism and help build something rational and humane by way of a new world order if I may use that rotten phrase.  Instead, we embarked on a sad journey of throwing our weight around and bizarre finger pointing in service to a corrupt corporate class of blood-sucking insects.  The Europeans for their part unleased the hounds on “nationalism” and erecting an authoritarian monstrosity to forestall it while moving decisively in the direction of the enemy in the east who had just collapsed and proven the futility of coercive government.

    Sigh.  It’s not complicated.  The iron laws of arithmetic will now kick in with a vengeance after decades of being ridiculed.  Like all great spasms, the forthcoming one will immediately become a bitch fight and no faction or doctrine has any idea of which path to blaze.  Personally, I’ll head to wherever there is a determination to celebrate kith and kin and to leave foreigners and minorities to mewl about “their rights” and how they have “suffered.”

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