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They Lied and Are Still Lying about Inflation [Gilder's Daily Prophecy] December 27, 2021 [UNSUBSCRIBE]( | [ARCHIVES]( You’re Virtually Invited To “The House That Crypto Built”! [Click here to learn more]( Once inside, you’ll discover: - The crypto investing secret from the man that grew $25K into more than $3MM over 4 years (and [how YOU can use it too]( - The name of the #1 coin to buy right now – 100% free of charge (no sign-up required). - The market catalyst that could send [9 tiny coins]( FLYING for 1,000% profit potential in the next year. [Click here now to RSVP](. *Editor’s Note: We are taking a break for the holidays and re-releasing some of our best issues of Gilder’s Daily Prophecy from the last few months. We will resume our normal publishing schedule after the New Year. We wish you a Merry Christmas and a Happy New Year! They Lied and Are Still Lying about Inflation [Jeffrey Tucker]Dear Daily Prophecy Reader, “I think the word ‘transitory’ has different meanings to different people,” Fed chairman Jereome Powell said the other day. “It’s probably a good time to retire that word.” There is stunning admission there, spoken about 6 months too late. It’s an admission that he has been terribly wrong. Economists too: this time last year, most were forecasting a 2% annualized rise in prices. The truth is starting to come out and we are already in the early stages of panic. The truth is that inflation is roaring at a pace not experienced in most people’s lifetimes. It’s already on par with 1979. Despite attempts by the business press to downplay it all, people in their lives are reeling from it. I went to mail a package a few days ago. The expense was three times what I expected. Then, I took an Uber across town. It was a short trip, but it cost $30, which astonished me. Everywhere I turn I’m seeing huge and shocking price increases. And there’s the stuff I do not buy too. The price of shipping containers has doubled. Fertilizer too. And liquor, my goodness. It feels like we are being pillaged. The Consumer Price Index will likely clock at 6% annualized rise when it comes out on Friday. But this number conceals the reality of what people are actually facing day to day on what they really buy. Bloomberg economists are estimating inflation at 7%. From what I can see, the inflation experienced on the ground is already in the double digits. The Fall of the Experts It’s amusing to remember how all this unfolded. The news of higher prices first hit in February of this year. Each time it came to a sector, there were excuses available. Look at car prices! Nah, that’s nothing: it’s only a chip shortage and that will come to an end. Look at lumber! Oh brother, here we go again and it’s nothing really. Look at housing! That’s just because people are moving around. So on it went for the better part of a year. The inflation virus spread like Delta, and with each new sectoral invasion, the experts pooh-poohed it and said it was limited, temporary, and due to special conditions that pertain only to that sector. How could they have been so wrong? Partly this is due to the illusory sense that there really is such a thing as an inflation index that rises and falls like the sea level. In reality, there is no such thing. It’s a statistical artifact. In real life, inflation hits unevenly, affecting sectors one at a time and in a scattered and bumpy way. Some things go up in price and then fall even as others then take over, rising and falling. Imagine yourself on a ship’s deck and water is sloshing from side to side. Sometimes it appears to go away only to come back even as it appears to go away elsewhere. If you keep your focus entirely on the behavior of water on the deck, you can miss the fact that the boat is sinking entirely. That is how inflation works. The experts have been trying to keep you focussed on the deck and not look at the hull. EV Stock Boom Alert!! stocks are going BALLISTIC right now! Congress just passed the $1 trillion infrastructure bill, so investors are swarming. But WAIT! Before you load up on any big-name EV stocks… There’s ONE tiny company that’s poised to skyrocket on this news… And it’s flying quietly under the radar right now. Now is the time to get a piece of the action. [Click here to learn how](. The Election In public, Fed officials have to pretend like they have this all under control. They will simply push a few buttons to tamp inflation down when the time comes, they say. This is all they can do. Don’t worry about it! Actually, the timing of all of this has Democrats in a panic. The Fed won’t act until the Spring and only if things are not better or are getting worse. They will finally end their asset-buying campaign and might even start playing around with the interest rates they charge banks, which they suppose will then affect rates more broadly. In theory, this should cool things down a bit. There will be certain sure effects of this. This will raise the costs of borrowing and reduce investment. It could harm productivity numbers. It will certainly increase the costs of servicing debt by the world’s largest debtor, the US government. This will not be a good look going into the November elections. What this might not do, for reasons we’ve explained, is tamp down inflation. Consumers and producers can easily counteract changes in money supply and interest rates by increasing demand for goods and services, thus reversing trends in money velocity. What that means is that we move into election season with depressed economic conditions, continued labor shortages, plus inflation that is not only not going away, but continuing to get worse. That will cause an electoral route of historical proportions. Poor Producers The prospect for a real depression is real. Producers are right now facing astonishing increases in costs. They can bear these for a month or two or a quarter or two, but it is unsustainable over the long term. It’s barely made the news that the Producer Price Index is now clocking 44% price increases. The shape of the increase is nearly vertical. Keep in mind that all this data is backwards looking. [chart] There is a reason why you haven’t seen this chart in the business press. The mass media is trying desperately to keep people calm. They are basically conspiring with the Biden administration to pretend like this isn’t happening. It’s a futile exercise. Who are you going to believe, your own experiences or what they tell you should be your experiences? The credibility of The Fed and the entire class of economic and pandemic managers is shot to hell. At this point, two thirds of Americans believe that the economy is being mismanaged. By this time next year, that will be four fifths. Regards, [Jeffrey Tucker] Jeffrey Tucker P.S. ***WARNING*** The following [investing secret]( was filmed on private property. It’s for this reason… We ask you NOT to distribute or forward the materials contained within. Let me be perfectly clear, fname: This is for your eyes only. [Go here now](. Don’t Buy Any Crypto Until You Read This New Book! Do not… I repeat… [Do NOT buy a single cryptocurrency until you read this new book](. This could be the biggest opportunity of your life, but only if you act now. [Click here to see how to claim a copy of The Big Book of Crypto](. 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