Quote from bearice:
World leaders, presidents, prime ministers (biggest idiots). They have the ultimate power but they are too weak to use it.
Example: There is 500 kg or 1000 kg weights in gymnasium. But nobody can lift such massive weights.
One day, a massive powerful man will appear from nowhere and lift that 500 kg or 1000 kg weights.
Who is this massive powerful man?
Governments create inflation , so would they use that power?.
governments lie about inflation .
I am not one to suggest conspiracy, but if the CPI reflected the real world, the government would be spending far more money on Social Security and a host of other pension programs. The crisis we will be experiencing in about 8 years would have already hit us. Thus, there was an incentive for leaders to find economists who could argue for new, more "progressive" methods for calculating inflation.
If governments told the true inflation figures, social security payments would rise, costs in the economy would rise as a result of higher wage settlements and price rises , interest rates would rise and the economy would collapse. If economy collapses, tax revenues fall and government has to impose greater austerity plans , leading to higher unemployment. The biggest loser in publishing true inflation figures is the government SO THEY FUDGE THE FIGURES.
Lies About Inflation
http://www.lewrockwell.com/douglas/douglas17.html
Lies, Damned Lies and Inflation Statistics
http://www.newsweek.com/2008/08/03/lies-damned-lies-and-inflation-statistics.html
U.S. Government Lying About Inflation and Jobs Market
http://dprogram.net/2011/02/11/u-s-government-lying-about-inflation-and-jobs-market/
Taxing with Inflation
Most countries have a progressive income tax--that is, as income goes up, so does the tax rate. Thus if income doubles, taxes will more than double. With this system, inflation will push people into higher tax brackets. Suppose a person starts at an income of $10,000 and a tax rate of 10% or taxes of $1000. If prices and wages all rise by 20%, he will have an income of $12,000. If his tax bill were $1200, he would pay the same real purchasing power to the government. But if the tax rate at $12,000 is 11%, he will pay $1320 to the government. This means that the government can raise taxes by causing inflation, without ever formally acting to raise tax rates.
http://ingrimayne.com/econ/optional/HideTaxes.html
http://en.wikipedia.org/wiki/Inflation_tax
Interview With Jim Rogers: The CPI Is A Lie And Inflation Is Going To Increase
http://www.businessinsider.com/jim-rogers-inflation-2010-6
Inflation has been called "the hidden tax" and that is exactly what it is. When the Government "prints" extra money what do you think it does with it? It spends it of course!
Further deflation propaganda fraud is perpetuated by academics and the mainstream press by pushing the low core inflation argument.
Governments around the world are using inflation to reduce debt.This hidden tax is on pensions, through V A T and other stealth taxes.Government will no longer use RPI ,CPI will will be used for increase in state pensions.Why are there pension crisis?People live longer and governments create inflation to reduce debt, and fiddle inflation figures.If governments told you the true inflation rates, pay rises and pension rises would make it difficult for governments to deal with.The method of reporting inflation is changed regularly to show low inflation to the masses
http://inflationdata.com/inflation/inflation_articles/m3_money_supply.asp
How Higher Inflation is Robbing Savers of Their Nest Eggs
http://www.bankaccountadvice.co.uk/higher-inflation-robbing-savers.html
If 100,000 cash is sitting in a bank account earning 0.5 % per annum , it losses it value by a net 40,000 over 10 years with inflation at 5.5 % , and net in inflation at 5 %.
If 100,000 cash is sitting and losing 7 % net per annum to inflation , it will lose 51,000 over 10 years , and 84,000 over 25 years.
