False Statistics around Inflation
Look at this link about the USA which roughly is also valid for the EU: https://www.unz.com/lromanoff/the-fraudulent-matrix-of-us-economic-statistics/
If we define the “real inflation” is the development of the prices of a typical shopping basket of popular affordable products for the worker class without any further tricks or manipulations but instead taking into account the lowering of quality and shrinkflation, then there were ~10% inflation in those years which officially showed ~2% inflation. Since 2022, officially 7-10% inflation were shown, but in reality it was ~100% in each of those years. Officially, the economy was in stagnation (0% growth) which means that roughly the same amounts were spent plus the officially low inflation. In reality, that bought only around half the value of the year before, i.e. in reality there was a nearly 50% drop of prosperity and life quality: Around 100% real inflation in 2022, i.e. at 0% growth, the real values produced fell by 50%. At maybe -0.1% growth, that maybe means -10% additional shrinking => shrinking to (50-10=) 40%. Old age pensions and ability to re-invest diminish correspondingly: This is wiping out entire economies like a blizzard. Only the super-rich benefit, among them the Russian billionaires who kill Ukrainians in the war or facilitate that war.
While statistics data is falsified and no recession is shown, “magically” many countries like Germany meet the climate standards because industrial production was reduced so dramatically. That’s the consequence of climate statistics not been manipulated as much as economics statistics, yet. So, the recession shows only in not-that-highly-manipulated statistics like climate statistics.
Consequences of the false statistics, playing out: That is the real meaning of stagflation: Plummeting, a real steep economic nosedive that will probably take generations to recover from and will thwart most innovation plans. Additionally, that higher real inflation means that people didn’t even get their wages adapted to inflation: Entrepreneurs are paying less value as wages each year and thus could much more easily enrich themselves which corresponds to the billionaire phenomenon of the last years. Moreover, they have some incentive to invest money immediately (sometimes in real economic activity but often just in the stock market or other speculation) before it loses more value. Employees however, typically are manipulated by the media or cannot afford anything other than investing in pseudo values like derivatives, day trading, things without inherent value like crypto currencies, NFTs or other shady securities that are often less secure. Hardly any of these investments performs better than the real inflation. It also explains well why in the 1960s a single income could easily feed a family with children studying, 2 cars, vacations and healthcare while this has become more difficult each year. In years like 2022, easily and additional 20-40% of the population (additional to the half which is already living paycheck to paycheck) can fall into a situation where they cannot afford anymore to live or healthcare to survive, thus provoking many crises, conflicts and suffering on personal, family and organizational levels. I.e. we can expect far more strikes just to survive, i.e. just because people need to get the real inflation compensated by governments and/or employers to avoid that people die due to not being able to pay what they need for survival. The same applies to low old age pension increases but exploding old age nursing home costs. The value of (old-age) savings dropped to roughly half and that a serious crisis might arise in those countries with low birth rates since decades – these countries are overaging. The money that people saved for their old age pensions easily lost half of its value per year, i.e. being reduced to 25% of the value within 2 years. These strikes are again going to affect the poorer people most e.g. in public schools, public transport, things not being available, etc. Banks of course wouldn’t accept that their business is constrained to grow or often shrink at only interest_rate – inflation. That’s why they insisted on fractional reserve banking which means that they only need to have ~10% reserves for each credit they create and that they can create these recursively and thus create ~90x the money they own or get as deposits and still treat their customers very arrogantly as if that were not the case. Banks also don’t tell that fractional reserve banking principle most of their employees: It is hidden deeply in credit and bookkeeping software. That way they can also put big pressure on their employees to engage in financing deals in the grey or even the illegal black zone under pressure to achieve a better performance than the real inflation with the performance of their deals. The housing/rental crisis is also much aggravated: Much less people can afford to build or buy real estate and renters over the decades have much less rent increases than market prices (even if they have rents indexed by the official inflation) and therefore it is typically financially unattractive for older people who need less space (e.g. because children moved out, a spouse died already) to move into smaller apartments at market prices which are typically still higher than their current apartment’s rent. Billionaires’ corporations often have the market power (at least when cooperating with their competitors / forming a cartel like e.g. the carmakers, energy and pharma companies) to raise prices much beyond even the real inflation (especially when competition is reduced e.g. due to disruptions) and do then abuse this, e.g. in 2022 in Germany around two thirds of price increases were of this type and thus further driving inflation while asking their employees to accept wages increases even much below the official lowered inflation statistics. Also the work of politicians has been seen as much better than it actually was and thus the demand for change is much lower. As a result, even in Western countries, half of the population is roughly poor and also the other half cannot afford to start many entrepreneurial activities. On the contrary, increasingly more are being forced on a rip-off or fraud path just to survive and that has especially accelerated since 1990, the breakdown of communism and thus capitalism not having a rival or alternative anymore. Around the same time, the subversion of the workers’ movement by criminal entrepreneurs and other criminal elements has advanced quickly so that workers are often not even able to organize a strike. Therefore, just looking from the financial perspective, the big problems probably won’t be solvable without major changes.
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