Orwell reference for those of you who didn’t read the book.
Article which motivated this post.
The bit I’m referring to:
Just spent a record high amount at the gas pump for this time of year? The BLS says you didn’t, and after all when it comes to reality, the BLS has a right of first refusal. The just printed headline CPI came at 0.4%, just in line with expectations of 0.4%, while core CPI of 0.2%, missed expectations of 0.3%. That’s right: not only is inflation meaningless, it is less than expected, leading to surge higher in stocks, bonds and the EURUSD. As for those items which are once again soaring in prices such as food and gas? Luckily, those can be hedonically adjusted by everyone to virtually zero. (wait? You still pay your mortgage or rent? Sucker!) Remember: the iPad is deflationary.
While some of this is like the political numbers game that the news outlets constantly play, there is, as always a shred of truth at the core. That truth is simple: Your currency is decreasing in value, sometimes exponentially, and therefor, commodities you use to, you know, live, are increasing in price.
It is true that economics can get complicated, this however, is not one of those times.
Dear readers, this impacts your way of life. This will impact the battle space going forward, and how your tribe fails or succeeds.
A government that will blatantly lie through one of its functionaries today when things are still pretty good, will magnify that to an order of magnitude when things get worse. Newspeak is the order of the day, and will be the vision of the future.
To clarify something I feel is critical regarding why I post so much econ related content:
- There is a wealth of fodder about it.
- It will impact you & yours going forward.
- It is the biggest picture view I can find.
I believe we are about to go through at least two decades of misery – globally. Life in America is going to radically change. The decadence we have known since we destroyed global industrial production during WWII will end. Life will be harsh, and an entire generation is likely to be decimated.
It is up to us to mitigate that damage by understanding the trajectory we are on and adapting solutions to counter that damage.
The ‘first right of refusal on reality’. Think about that dear readers. Times are still good. I would venture to guess that if you are reading this post in a western nation, you went to sleep in a bed last night with your hunger and thirst satiated. Again, think about what that propaganda would look like when unemployment is at 30% and inflation is spiraling out of control.