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Re: SC42

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May 19, 2007 02:18PM
http://www.globalresearch.ca/index.php?context=viewArticle&code=CHI20070519&articleId=5697

Peak Oil and the Inflation Lie:

US government, Wall Street hide energy shortage and crisis with deceptive indicator

.................Rising energy costs are inflation. You cannot have one without the other. Energy, and energy-related material, is the lifeblood of modern industrial life. When the cost of energy (including oil, natural gas, electricity, and the products made with petroleum, such as plastic) goes up, the cost of everything goes up. This is inflation. When energy is depleted, while the use and demand for energy continues to increase, the price of energy skyrockets. Inflation, again.

It is a fact that the world is in the early stages of Peak Oil and Gas---permanent shortage, and permanent depletion. The world oil peak occurred in November 2005, according to renowned scientists, geologists and industry experts.

It is therefore a fact, with permanent shortage with high, rising and insatiable world energy demand, that rising inflation is not only a problem now, but also a permanent condition.

Why are the authorities hiding this?

Core inflation hides the truth about energy crisis

Simply defined, inflation is the increase in the average level of prices. However, there many different methods by which inflation is measured, and selectively reported by US government (primarily, the Bureau of Labor Statistics), the Federal Reserve Bank, Wall Street analysts, economists, the corporate media, and the rest of the US government.

There are, however, many different definitions of inflation. In recent years, the Bureau of Labor Statistics and the Fed have selectively emphasized one version, core inflation. Core inflation is the statistic that excludes costs of energy and food.

Given the fact that 1) daily existence in modern life demands various forms of hydrocarbon energy, 2) a vast array of basic material is derived from hydrocarbons (such as plastic), and 3) food and food production depend on hydrocarbons (fertilizers, irrigation and pesticides, energy needed to run machinery, etc.), the exclusion of food and energy costs in the measure of inflation is, therefore, a lie.

The selective use of core inflation is a cover-up that is routinely assisted by corporate media that, knowingly and unwittingly, promotes the illusion of a “growing economy with inflation under control, or non-existent”............

..........Ordinary people are being defrauded and lied to. It does not take a degree in economics or finance to see this. Even people who do not pay attention to the news intuitively know and feel the increasingly crippling effects of real inflation every day, at the gas pump and everywhere else. They are watching their money disappear. The crisis is palpable..........

...........“The US consumer is confronted with rapidly rising costs for food, energy, health care, housing, education expenses. Indeed, even as both the everyday survival expenses (shelter, food, energy) and the larger family expenses (doctors, college, etc.) have exploded, there has been little correlation to what economists and the BLS have informed them. Despite the contradiction, there is little inflation in the official stats. It is as if economists are asking consumers, ‘Who are you gonna believe, us, or your lying eyes?’”.........

...............“The CPI does include the soaring costs of energy and food, so the Fed and the Big Media have cut them out by referring to the ‘Core CPI Inflation,’ which is a totally ad hoc number they get by cutting out energy and food costs. But have you ever met an American, or any human being, who could live without food or energy? The Fed pretends it is cutting out the heart and core of inflation by cutting out food and energy because these are ‘variable.’ But, of course, all prices are variable and this variability is the very reason one wants to keep measuring them: if they were not variable, it would be absurd to measure them more than one time.

“First, they do not want consumers to know that the American economy is in a desperate situation. If people knew the truth, they would save, not spend, and would insist the government stop running up immense debts to pay-off its rich Party members and fight unwinnable wars.

“If people saved, the Fed believes in Keynesian Ideology the economy would shrink, so they lie to get people to borrow and spend to pump-up the economy. The government and Fed poured out vast oceans of paper dollars over the past six years in a desperate Keynesian attempt to revive investment, income, consumption and growth to kick-start the economy after the Crash of the Nasdaq Bubble (created by earlier Fed floods of dollars to ‘pump-up the economy’) six years ago erased over 8 trillion dollars.

… “Second, they hide inflation to keep down the inflation-adjustment wage and retirement benefits to tens of millions of Americans at the lower end of the income scale, which saves big corporations and the government tens of billions of dollars a year.

“The Fed and the rest of the government failed to kick-start a real investment boom and growth. They produced an immense burden of debt, inflation, bubbles, and distortions of the whole global economy. Now all of that is unwinding faster and faster: we are spinning down faster and faster in a vortex of contraction that will most likely produce a ‘free fall’---a Great Crash.”.............

..........An honest, accurate picture of post-Peak Oil economic reality, and the resulting public outcry, would cause a systemic crash, stock market collapses, and the end of “consumer confidence”. Without consumer spending and debt, the fragile economy would lose one of last remaining legs it is teetering on. There would be no more “pump” in “pump and dump”, and the Wall Street casino would close.

Off the cliff, into the dark

Governments, corporations and policy makers all over the world have been aware of Peak Oil and Gas for a long time, and have engaged in desperate actions to prepare for its many effects, including inflation. On February 28, 2007, the US General Accounting Office (GAO) published a report to Congress entitled Crude Oil: Uncertainty about Future Oil Supply Makes it Important to Develop a Peak and Decline in Oil Production. The authorities simply do not want the public to be privy to their machinations.

The global architects who manage a teetering global system that profits from criminality and mass murder---who have lied about 9/11, and lied in order to wage illegal wars of conquest all over the world---would not hesitate for one second to lie about inflation............
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