Little Elves are Secretly Increasing Prices!

Just copy China. Only they fully understand how to control corporate greed! [Gilder's Daily Prophecy] December 16, 2021 [UNSUBSCRIBE]( | [ARCHIVES]( URGENT: Battery Patent No. 3069168 of Tesla’s senior battery engineers QUIT Tesla and submitted a patent application for a revolutionary new tech process… But he didn’t just quit…he’s brought the chief of Tesla’s entire battery division with him. The man who helped create the original lithium ion battery. And today, you can take advantage of their TINY startup. [This stock]( could skyrocket as much as 100% in a matter of minutes. [Click here for the urgent details.]( Little Elves are Secretly Increasing Prices! [Jeffrey Tucker]Dear Daily Prophecy Reader, The battle is on right now to discover the cause and fix for the disaster unfolding before our eyes. This is the one that is eating away at wages, devastating businesses, stealing retirement savings, pillaging students, making a mockery of our attempts to save for a rainy day. I’m speaking of the destruction of purchasing power. Devaluation. Double-digit inflation. Just as alarming are the attempts to assign blame. It’s been so long since we’ve dealt with anything like this. As a result, people have just become stupid. They have forgotten as much about monetary policy as this generation forgot about cell biology. The perpetrators of the problem are actually proposing that they will fix it! The looters will restock the shelves! The Fed Fix The Fed says inflation is due to some kind of dislocation that only it can fix. Trust The Fed! These same people told us only a few months ago that the whole thing is transitory. Now The Fed is at least admitting that it has a problem. Oh but they will fix it — sometime in 2022. They will raise rates and hope that this somehow affects the price of loans. And then like magic, inflation will return from double digits to its 2% target. Let’s talk about that target. It’s always been a myth. The Fed has missed it for the better part of ten years. Even more ridiculous is the idea that it is even possible to measure precisely whether and to what extent the exact inflation rate is even possible to calculate. As David Stockman has written, “The fact is, any and all versions of the CPI and the PCE deflator are such crude approximations of real world inflation as to be utterly unfit for monetary policy purpose.” Don’t you just love the word target here? The Fed has never hit that target except by accident. The very use of the term “target” implies a level of control they do not have. Their powers are few and big but remarkably imprecise, like a man with a blindfold shooting a shotgun at a crowd. Someone is going to get hurt, but it is impossible to predict whom it will be or how many. So the very notion that The Fed will fix this is preposterous. It is as likely to fix inflation as the CDC is to fix Omicron. It’s not just the incompetence. It’s not just the lack of any real tools to control outcomes. The core problem is that The Fed itself is the cause of inflation and not its solution. Breaking: Ex-Pentagon Insider’s Disturbing Message for America He warned about the 2008 financial crisis a full two years in advance. He’s predicted everything from the coronavirus crash, the election of Donald Trump, Brexit, and more. And he just went live with a disturbing new warning for America. One that could have devastating consequences for anyone that’s still holding stocks, cryptocurrencies, or cash on [1/12/2021](. If you have money in the markets, or you are worried about America’s financial future… You need to [heed his message]( now….because once this crisis hits it will already be too late. [Click here to learn more]( Oceans of Money Let’s have a look at what is called the monetary base. This is not hot money on the streets. It is the largest pool of potential money that could be available under the right conditions. At the start of the 21st century, the monetary base stood at about $500 billion. Today it sits at $6.3 trillion. Have a look: [chart] It’s utterly mystifying to me why anyone would think you can unleash that amount of paper out there and not see some effect in terms of prices, maybe not immediately, but eventually. You might say: this is not the right aggregate to follow. Ok, fine. Which is the right one to follow? Every conceivable monetary aggregate out there shows essentially the same pattern. But let us visit our old friend M1.This was the monetary aggregate that Milton Friedman used to prove the absolute relationship between the money supply and the price level. He got a nobel prize for his book. But with financial deregulation, his favorite tool called M1 seemed every less relevant. Then we got other aggregates like M2, M3, and MZM, the latter two of which have been discontinued. In May 2020, the Fed made a change in the way it calculates M1. It includes not only cash, checks, and savings but other forms of checkable deposits including those in money market deposit accounts. If I may say so, this change strikes me as a good one. It more or less restores the usefulness of M1. So let us have a look. [chart] I’m not making this up. This is not Photshopped. This is straight off the mainstream data site produced by the Federal Reserve Bank of St. Louis. It mystifies me why I’ve never seen this chart reproduced in a single financial publication. And yet, if you consult Paul Krugman, he has some other cockamamie theory about inflation. It’s utterly bizarre. Inflation is the dead body and The Fed’s insane monetary expansion is the gun standing right next to him. Krugman is the cop who shows up and says “this must have been caused by the weather.” Much more insidious is the White House itself, which says that the inflation is clearly the result of industrial greed. They will stop it by enforcing anti-gouging regulations. The China Model Everyone by now (I hope) understands how the US copied China in its virus policies. China lied about their effectiveness, but the US and Europe copied them anyway. Now China too has an inflation problem. Yahoo news is celebrating how China is stopping it with the following: “Authorities have rolled out a series of interventions in recent months, including setting an immediate ex-mine price target and ordering rapid production to cool red-hot prices, measures that have proven effective in easing a power shortage expected this winter.” Just produce more and lower prices! The Biden administration will surely be inspired by this brilliant solution. Just copy China. Only they fully understand how to control corporate greed! Regards, [Jeffrey Tucker] Jeffrey Tucker P.S. Just a quick reminder: Your chance to get the name of the #1 coin to buy right now expires in less than 12 hours. (You’ll get it 100% free of charge, no sign-in or opt-in required). 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