Reverse Reality and the Economy

Posted on June 21, 2008
Filed Under Fake Culture, Society |

I keep hearing shouts about food and fuel price increases; it’s all over the news nowadays, the US Congress even talk about it - and it’s no different over here in the UK. It is indeed getting notably more expensive to buy anything from meat to bread to gas. Yet the cries of price rises are actually totally wrong, as usually everyone is being distracted to look in the wrong direction.

There’s a very simple way of looking at the economic situation which immediately puts things into context, in 1920 fuel in the US was roughly around 30 cents. I don’t know if that was a ‘lot’ of money back then, but it sure seems cheap when compared to today’s standards. But ‘money’ is a relative thing, because modern currency is ‘fiat’ money meaning it has no real value. Let’s take another look at fuel in the 1920’s. Back then it was possible to buy around 4 gallons of gas for one silver coin. Interestingly it is still possible to buy around 4 gallons of gas for one silver coin.

The price of gas has not changed, these items (and many others) have held their value in relation to each other. What this shows very clearly is that worldwide currencies are falling. Prices aren’t increasing, the reverse is true - our money is loosing value.

For all the fear mongering being generated right now in economic circles (see below), you won’t actually hear any of this being mentioned. Better that we be kept ignorant of our economies failure, because this allows us to plant blame in individual corporations such as Bear Sterns or countries like China. Anything to divert attention away from the real problem…the system itself is flawed - and in very real danger.

Here’s something from The Royal Bank of Scotland:

The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

“A very nasty period is soon to be upon us - be prepared,” said Bob Janjuah, the bank’s credit strategist.

A report by the bank’s research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as “all the chickens come home to roost” from the excesses of the global boom, with contagion spreading across Europe and emerging markets.

Global Market Collapse

Is the economies time really up? Probably.

Guess the now is the time to think of what we can do to prepare ourselves for such an event.

Comments

4 Responses to “Reverse Reality and the Economy”

Dan on June 23rd, 2008 3:18 pm

I hate it when they say.

“the rising price of food and oil is causing inflation” When its the total the opposite, inflation is causing the rising price in food and oil.
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Marcus on June 23rd, 2008 6:29 pm

But is it really ‘inflation’ when it is the currencies losing value, as opposed to products increasing in value? These are two different things, we are being told that ‘inflation’ is occurring…but is that actually the correct term for what is really happening?
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Dan on June 23rd, 2008 8:13 pm

My understanding is the printing of fiat money is the inflation which in turn causes higher prices of commodities not the other way round that the higher prices is causing inflation.

I think inflation is just the term used by mainstream for something they don’t really understand.

Like you said commodities are not rising in price not in relation to other commodities such as the example of a silver coin buying the same amount of oil. so the only conclusion can be the inflation(printing of fiat money) is devaluing the currency) Im sure of enough of this to have been buying gold and silver with all my money its not alot but im not going to let them steal my labor.
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Marcus on June 23rd, 2008 8:40 pm

That’s my understanding of the situation too. Seems the eCONomists try and make the situation very complicated (and I guess it is when you take bonds, stocks, markets and all the rest into consideration). An obsession with too many details only serves as distraction.

Gold and Silver are the right way to be going…really you can’t lose.
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