Scapegoats Are Being Rounded Up in the Inflation Witch Hunt.

Wednesday June 28 2023 Monaco 64 home of alternative economics and contrain views It's Beginning The Witch Hunt yes the inflation Witch Hunt and the culprits are rounding up scapegoats yes they're rounding them up and it's something I expected to happen and why well because even though history doesn't repeat itself exactly it Rhymes and human nature never changes and that's what we're going to talk about today

we're going to reference a book that have referenced many times probably uh the best book that I ever read in terms of uh knowing what would happen um to the economy to the monetary system and I'm gonna give you also my opinion of what it means uh this uh inflation blame game or Witch Hunt before I start yes I like to say that yesterday I published

a an interview I did with uh Elijah Johnson from Liberty and finance I didn't do my usual morning video I actually went to play golf which is a little different and I teed off at 20 to 8 and I was finished by 10 o'clock it was really nice so uh something a little different sometimes you gotta get out and smell the flowers I would say in

this crazy world and it is a crazy world and I think it's a symptom of the decay of the currency of yeah the money gone bad and I think Rafi Faber made a really good video about it uh yesterday that all the ills of society uh right now you can trace it back to the uh to the money because the powers that be have control over

it through the fiat currency system so yeah the inflation Witch Hunt so it was helpful I guess to go and play golf because when I was driving to the golf club I actually put on LBC LBC Radio which I usually don't listen to and they're talking about the fact that uh you are gonna have or you had yesterday the major uh heads of the supermarkets in

this country in the UK being a question or grilled by MPS about higher food prices and I thought well there you go um the people who are actually partly to blame for the inflation they're grilling the people who are only reacting to it so there you go there's a story here in the mail why is cost of food still surging when wholesale prices are dropping Supermarket

Chiefs are berated by MPS over Rising profits as Brits struggle to cope with inflation that has been uh that has seen baked beans up 22 percent Bred 13 and eggs 19 in one year so yeah they're looking at a completely wrong uh people if you know what I mean and if you know what I'm talking about uh another headline here Jeremy Hunt to ask UK Regulators

to investigate exploiting price Rises Chancellor to meet Watch Dogs to discuss claims that company profiteeri is stoking inflation and then we had this is uh one of my favorites here and this was in yesterday it was a week or and he's been saying this for a while uh the governor of the bank of England which is another uh the culprit so the main culprits of course

you should know by now uh uh is uh the government and its agent central banks and Commercial Banks only they can create inflation not business people so Andrew Bailey blames High wages for causing inflation uh economists criticize remarks by Bank of England Governor yes Mr Bailey uh asking for highway just as a consequence of the inflation that you Mr Carney and Mr King have been creating

since the 08 crisis we've seen the British pound versus the dollar and I'm not even talking about gold it's even worse against gold versus a dollar we went from being above two in 2007 so with one pound you I think the high was 2.11. and until Reese well last year the pound got down to 103. so that means that yeah the the pound is halved in

value so that means that everything that we have to buy in dollars uh is going up double and uh this has been of course a deliberate policy of the government and the Central Bank through negative real rates through the zero interest rate policy and the massive QE I think we got almost to a trillion pounds in QE not quite a trillion maybe 800 billion pounds it's

over a trillion dollars well old dollars at least in terms of British pounds and that's what's uh diluted the currency so I've got my coffee here but for example if I had a milk and uh I was at a a restaurant and I asked for milk for some reason which you usually don't but if they didn't have enough milk for a mug of milk and they

put half milk and then half water I would notice the difference and that's what the government and the bank of England have been doing since 0809 and even if you go back to 1914 since this country went off the gold standard they've been diluting the currency so again I'm gonna remind you of this quote by Phil Felix summary AKA The Raven of Zurich why is this

so important well because this man advised government uh Emperors central banks even the U.S treasury in the first half of the 1900s he was very well respected and this is what he said the state alone is responsible for inflation inflation without government or indeed against government is impossible so what do I think this means the fact that they're trying to uh laid the blame on the

people who are actually suffering from the devouring British pound the devouring currency well the most obvious reasons that they want to put the blame on someone else and they don't want people uh criticizing the central bank or the government because they would be in trouble but the other reason I think is to do with this um IMF warns central banks of uncomfortable truth and inflation fight

so now the deputy chief of the IMF this lady here uh she used to be the chief Economist she's saying that uh central banks are probably going to have to run inflation higher because if they tighten too much they could cause crises and we've seen that happen already so I think that's part of it as well They're Gonna Keep uh yeah the policy very accommodative and

it still is uh of course not as accommodative as it was at the end of 2021 and uh beginning of 22-22 but some would have argued that it is that in real terms rates are still highly negative so the uh scapegoat part helps them keep this policy of inflation going and that's why I think we're only in the beginning the other thing that it leads me

to believe will happen especially with how crazy things are in this world and I don't have to go over all the crazy things that are going on in in terms of social geopolitical economic um it's crazy right I I I've been alive for many decades uh almost UH 60 years I'm gonna be 59 in October and of course I grew up in Brazil and things were

crazy there because we had massive inflation but now we're getting it in the west and it leads me to believe that the end uh end result will be a massive crack-up boom and we're already seeing it even though for example house prices have come off a bit in the UK they're still massively uh overvalued and they could continue to be overvalued in nominal terms and you

might say oh you said housing could collapse well it could but uh these people are going to keep inflating and that's why I think we're only in the beginning and things are only going to get worse and people who hold on to Savings in pounds or dollars or Euros or Swiss Francs they're gonna lose out big time and also people on fixed incomes people who hold

bonds or savings accounts it's going to be uh 1923 all over again unfortunately but this time it's going to be uh yeah it's not just going to be in Germany and and Central Europe it's going to be all all around the west and probably even in the uh developing world if you want to call it that so that's why I think they're trying to find a

scapegoat and they're trying to pressure putting pressure you know to bring them to to Parliament and Grill them it's going to make them think it's going to make them think and I think it's going to create even more problems for the supply chain because they're gonna try to squeeze their suppliers because they're they're thinking well we need to try to keep these prices down and we're

going to have shortages that that's how I see it so I said I was gonna reference a book about uh what's going on the the scapegoat the blame game and it's happened before and and most of you probably know it already uh those of you who are new to the channel probably don't and it's this book here Fiat money inflation in France how it came what

it brought and how it ended by Andrew Dixon White and it's uh the story of QE in Revolutionary France uh yes they did do QE back then it was called the issuance of asinyats and um they even backed this paper currency with the land and property that They confiscated from the uh the church and the aristocracy so yeah 1790s friends and they tried QE it was

supposed to be just qe1 uh one issue because they knew it was a dangerous thing to do the French had experienced the uh the crisis uh the money printing of John Law in 1720. so there the memory was still there uh 1720 to 1790 so they were very worried about they they found out like we're finding out now that after every issue or every QE yes

the economy picks up everything's fine but then it slows down and it doesn't come back so there's always the temptation to do it one more time right just keep doing and I remember uh Ron Paul when he was still in Congress and they started QE and I think uh it was going to be a trillion it was going to get the balance sheet of the fed

from 800 billion to 1.8 trillion and Ron Paul asked Ben Bernanke uh well this is going to create inflation and and Bernanke said oh no we will just like uh sell off the balance sheet it's going to be like watching paint dry well the watching paint dry part was what Janet Yellen said a few years ago so that that's what we are told by Ben and

Hank Bernanke uh we'll just do a trillion and then we'll sell off the balance sheet and go back to 800 billion so there will be no problem the base should shrink or might shrink or is that something that you don't even want to address no I I think we would like to bring the balance sheet back to something consistent with where it was before the crisis

which means enough to accommodate Americans demand for currency plus a modest amount of reserves in the banking system and that would suggest something under a trillion dollars I think would be a trillion dollars or less yes okay of course that would be very unprecedented and here we are now we are almost at 9 trillion yes they're trying to uh QT right now which is the opposite

but they're they're going nowhere and eventually they're gonna have to inflate again uh just like the IMF is saying it's inflate or die as Richard Russell said so let's get to the book here and this is on page 40 and I highly recommend this book I'm gonna put a free pdf in the description for you so this is on page 40. uh and it says the

third outgrowth of the vast issue of Fiat money was the maximum as far back as November 1792 the terrorist associate of robust Pierre sent Juiced uh in view of the steady rise in prices of the necessaries of life sounds familiar hat proposed a scheme by which prices should be established by law at a rate proportionate to the wages of the working classes this plan lingered in

men's Minds taking shape in various resolutions and decrease until the whole culminated on September 29 1793 in the law of the maximum why all this legislation was high-handed it was not careless even Statesmen of the greatest strength having once been drawn into this flood were born on into excesses which a little later would have a appalled them Committees of experts right MPS grilling Supermarket executives were

appointed to study the whole subject of prices and at least there were adopted the great four rules which seemed to Statesmen of the time a massly solution of the whole difficulty so Jeremy Hunt to ask UK Regulators to investigate firms exploiting price Rises so it says here in the garden Chancellor to meet Watchdog to discuss claims that companies profiteering is stoking inflation so he's doing exactly

the same thing that they did in France and and it failed I won't go through what what happened here but people were give your team for not following the rules for not keeping prices uh up to a maximum and what did it create it created even more misery more shortages and higher prices it created probably of course a black market but I recommend you you read

it and it was the reign of terror and uh of course it was the National Assembly that started the uh issuance of that sinata they were to blame for the higher prices because the money was worthless and people could see it and it's the same thing going on now and you have we have to go back to uh about 25 years ago really and it's not

about party but it was the new new labor government that started they gave in the independence to the bank of England yes the bank of England the government now they've changed the history of inflation because from 1997 to 2020 uh the bank of England used to have a well their track record wasn't good because CPI averaged 2.9 percent every year they're supposed to keep a two

percent Target they didn't they've changed the rules now done a video about it last year did you know that the government has tinkered with the CPI and it's a lot lower than it used to be prior to May 2022 so it started many years ago and what we're seeing now is payback for thinking that we can borrow our way into prosperity and wealth and they're trying

to fund the scapegoats and it's going to get worse they're going to try to keep inflating so so hold on to your precious metals I say I I know gold and silver have been under pressure lately but I would say that's the best time to exchange your fiat currency for real money and it's not a trade it's about financial survival I would say so with that

let's quickly look at where the markets are this morning it's 8 20 a.m London time we've got spot gold at 1911 it's down just over two dollars a low has been just below 1910 has been 1917. silver is down four cents at 22.80 Low's been 76 High has been just below 23. stock market value is down eight points NASDAQ is down 41. s p is down

about seven points to the currencies uh Sterling is down point one at twenty one twenty seven thirty the euro is down 0.1 as well at 109 uh 50. uh we've got the dollar unchanged versus the Yen 144.03 we got the dollar up a third versus the U1 at 724. to the other currencies uh we've got the uh Aussie dollar uh that's down two-thirds of a percent

high grade copper is up slightly at 380. uh let's look at the bond market uh Gill yields are continuing to rise and it doesn't bode well for for anything really and it it makes me believe that the bank of England is in trouble and that uh they might find an excuse to to restart QE who knows but uh things are not good the two-year yield now

is at 532 and uh yeah it looks like it Go could go a lot higher in my opinion as I've said before just look at this chart it looks really bullish in terms of the yield which is a bad thing um the uh only thing that's uh Saving Grace right now is that the long-term yields are still under control below five percent if if those start

Rising quickly that will uh point to the fact that uh long term the markets are losing confidence faith and confidence not just in the Bank of England but the the UK treasury in terms of inflation and I think that might happen that there's a big probability that that will happen so uh U.S treasury market we got the two-year yield at 475 down two basis points the

10-year it's down one at 376. so with that I'm gonna wish you all a very good day take care bye