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Inflation Lies and the Markets

In a series of posts on this newsgroup, I have argued that the essence of "White Nationalism" is defense against an establishment seeking not only to destroy our racial identity, but to extract the most money from middle class Euro-America.

After all, that is where the money is!

If your objective is wealth and power, you are going to screw the 75% who earn 80% of this nation's income. You are not going to content yourself with a mere 25% of the population which earns a lesser percentage of national income. Wealth and power can be attained only by looting the most productive.

Of course, screwing the majority is a delicate art requiring a thousand deceptions. After all, you can't exploit them without keeping them in the dark. They must remain (to use Bowery's term) "slave populations."

In earlier posts, we have examined this empire's myths - bland generalities such as "majorities always exploit minorities" - which end up being tools to achieve the opposite effect.

But in all of these posts, I have been more concerned with facts than abstract ideologies of race. Just exactly how does the government screw the White majority? How does it conceal the effects of its policies? Once you have examples, then Euro- Americans can construct their own ideologies, each of which will be broadly acceptable. Hopefully, they will vote (or, ultimately, secede) to protect themselves.

And this week I found another gem from Barron's Magazine.

Below is s short quotation from Jim Rogers, a famous investor from the April 22 edition of Barron's magazine, page 29.

Q: Well, when are we going to see any of this in the inflation statistics?

A: The government lies to us about prices. They said the price of heating oil is up 2.2% in the most recent report. I don't know if you heat your house with oil, but I do - and my prices were up a whole lot more than 2.2%. I called my oil man and said, "The Government says the prices are up 2.2%, how come you charged me so much?" He said, "Buy your oil from the government then, if you really think prices are only up 2.2%." The government lies to us because they want to screw COLA recipients - keep the cost-of-living adjustments down. That helps the government in lots of ways on the expense side. And on the income side, since all the tax brackets are indexed, if you keep them from moving up, everybody has to pay higher taxes. So the government has a lot of reasons for doing it. I happen to be old enough to know that the government lies. Every government. But they do have a rationale, they say, for claiming that the price of gasoline, or cars, or whatever, hasn't gone up much. It's better, safer, cleaner, less-polluting - because of government-mandated improvements. So it must be good for us. And if its good for us, it shouldn't count as a price increase in the CPI or PPI."

In the "Roundtable" discussion in January, Jim Rogers made the same point about the CPI numbers being a lie. He noted that the government claims the cost of an automobile has increased by 187% (or a factor of 1.87 times) since 1967. However the price of a Camaro has risen 8 fold (800%) in that time frame, not 1.87 times.

In 1980 a box of cereal cost about $1.50. Now they cost $5 and $6.

So why would the bureaucrats at Census and Commerce lie to you?

The immediate answer is that they are under a great deal of pressure from their political bosses to lie. As Jim Rogers notes, the political bosses want to hold down payments to the aged (who are disproportionately more White than the younger population), and to increase the tax take to enhance their ability to buy votes.

But a much more important reason for lying is shared by both the government and by Wall Street. It is the screwing of the White baby boomers.

In 1972, housing prices began to rise as the lead edge of the baby boom hit their mid-20s (1972-1945 = 27). Housing prices peaked in 1986-1987 in most parts of the country (but not until 1989 in California).

In 1982, as the baby boom hit their mid-30s and started saving for retirement, the stock and bond markets embarked on historic rallies. If housing is any guide, these markets will peak sometime between 1996 and 1999.

Beginning in the year 2005, the lead edge of the baby boom will hit age 60 and begin withdrawing the moneys they have saved. We will enter a 30 year bear market in stocks and bonds (unless the Chinese become enamored of our markets).

But no politicians or investment professionals on Wall Street care about the year 2005. The government has $200 billion in bonds to sell every year, and Wall Street earns a hefty 1% of the trillions in financial assets that the baby boom has blissfully accumulated over the last 14 years.

As we speak, the boomers are pouring $5 billion per week into mutual funds.

And both Wall Street and the Government desperately want the baby boomers to continue investing. They want them feeling secure about the economy. Rosie Scenario rules!

With the dividend yield on the S&P 500 at 2.2% and the long treasury bond yielding a mere 6.8%, it is comforting to know that "inflation" is running only 2.7%.

If the public were to realize that real consumer inflation is now running at more like 6 or 7%, they would not be so likely to invest in financial assets.

This is the first runaway bull market in history that has been so heavily dependent on propaganda.

The smart money on Wall Street is feeding off the baby boom - selling them pieces of paper at record highs and collecting hefty management fees on the financial asset inflation the boomers have created. To keep the con going, they are feeding them propaganda about low inflation.

The government goes along with the gag and gins up the phony numbers because they have to sell $200 billion of new bonds every year.

Here is what will happen.

Millions of older boomers have large 401(k) accounts of up to $500,000. But to make money for retirement you ultimately have to convert those mutual funds to cash. Only as small number of early birds will succeed.

The vast majority will see their accounts melt away in that 30 year long bear market.

The value of all American stocks is about 6 trillion. But this does not mean that you could sell all the stocks and collect 6 trillion. Once even modest levels of net selling begin, prices drop dramatically so that stocks will not have a value of anything like 6 trillion. The amount of cash the baby boom can withdraw from the markets is considerably less than 6 trillion.

Our stock market has such a value only for the early birds who get out in time. Wall street knows this, the actuarial firms know this, and so do the government statisticians.

Once the retirements start, our stocks will have to fall in price to a point where dividend yield compensates new buyers for the fact that prices will be dead in the water during the decades of retirement selling. "Dead money" is the bane of all investors.

The significance of the inflation lie is that dividend yields need only rise to 5.7% to provide a "real yield" of 3% if inflation is only 2.7%.

But if inflation is actually 7%, then the yield on the S&P will have to go to 10% or 12% for stocks to find willing holders.

Take the Dow or the S&P and divide by 5 folks. That is how far stocks must fall to get us to 12% dividends.

Most of the baby boom is going to have their retirement taken away from them.

At this point, the trailer parks will proliferate and a large sector of the glass tower elite is going to become dependent on Social Security and will rub elbows with the real America. Social Security, itself imperiled by these same demographics, will become much more important.

The politicians will claim that new immigration is needed to pay Social Security taxes. However, there is no way the new immigrants are going to pay for aging whites. Blacks and browns have been sensitized by "multiculturalism." They have quotas, preferences and subsidies. They don't pay! They collect!

The blacks and browns we will be asking to support us are racially aware. There is no way they are going to volunteer to take the place of the Whites now on ZOG's treadmill.

In fact, the lack of racial awareness of most American Whites is a resource for the exploiters that is unlikely to be duplicated anywhere in the World ever again. It will prove to be unique in history.

For you lurkers on this group, much of the demographic information is what Wall Street calls "background." It does not tell you _when_ our markets will peak.

However, there are two trends in the foreground that make it prudent for me to mention this to you now.

First, commodities have been rising for about three years now. As is typical of a new trend, in these early years the rise was fitful and it was difficult to make money. That is changing. Since the January 1993 low, you would have earned about 8% compounded in silver. This yield is about to increase.

Second, interest rates have started to rise. Ultimately, stocks buckle under the pressure of rising rates and rising commodity prices.

The point is that you now have alternative investments in commodities, hard assets (but not trade-up housing) and short term debt. Look for the rare coins of Canada and Australia (both commodity producing countries) to perform spectacularly over the long run.

It is critical that you White Nationalists protect yourselves and your 401(k) balances. Don't be the last out the door.

Transtopia