My last article discussed how Keynesian economic theory is used as a persuasion tool for current institutions of power to gain even more power. One of the keys to hide the destructiveness of Keynesian theory is to lie about inflation. Manufactured inflation numbers pose as “scientific data” to justify economic policy and interest rate decisions.
Citizens are overly trusting of these fake numbers and assume these institutions are looking after their financial well-being.
In reality, they are not. Government policies in tandem with central bank interest rate decisions usually result in citizens increasing their dependence on government, and subsequently growing the demand for more intervention.
With numbers depicting a bad economy, it is blamed on not enough intervention, thus more intervention is required.
With numbers depicting a good economy, it is attributed to effective intervention, thus more intervention is required.
They need to lie about inflation to suit the decisions they make at the time, otherwise it is apparent even to the layman that Keynesian economic theory is a bunch of voodoo. With realistic data, it would be obvious that the policy makers and central banks are incredibly ineffective at their job.
The Chapwood Index is a third-party measure of inflation that attempts to reveal the true annual rate of inflation narrowed down to the city level for the U.S.
While the Federal Reserve cites inflation rates below 2%, the Chapwood Index shows inflation to be around 10% for the majority of the U.S.
I’m sure anecdotally you would agree with the 10% figure more than the 2% figure. Just search for “real rate of inflation in Canada” and almost everyone outside of the powerful institutions will agree reality is much different than the fairy tales coming out of parliament and the Bank of Canada.
I’ll be looking into building a similar index for Canada, just to show the pack of lies the current economy is built on. The rosy picture the U.S. and Canadian governments paint are persuasion tactics to keep this debt-fueled bubble going, while simultaneously building a fabricated need for more interventionism, thus expanding the size of government.
Since the policy makers and central bank will never take the blame, I fear what the scapegoat will be when the Ponzi scheme collapses, the mountain of debt unravels, and the eventual correction/recession occurs.
* * *