The Good Citizen Guide to Massive Government Inflation Lies

Watch "Tonight and Every Night”. It's lovely. With Rita Hayworth. You'll like it.

Photo: Openverse by Images_of_Money, https://creativecommons.org/licenses/by/2.0/

One US dollar note

Otherwise? Everything next will be depressing and somewhat technical. But it's important.

So listen in before you tune out to an enjoyable 1940s musical extravaganza.

For today, Dear Friends, we chat about Inflation and the many ways Government lies to you.

A Note On CPI vs PPI…Truth Amid The Lies

"Geez!?! Somerset is BEGINNING with technicalities…UGH…”

Look, pal, no one expects the ordinary Citizen to be an expert (or even a neophyte) on Inflation.

The problem? Government relies on precisely this lack of Economic Acumen to swindle The People.

So, very briefly, very generally, very roughly, the CPI is Consumer Price Index. That is the ALLEGED increase in Inflation the Consumer pays. It is nearly ALWAYS "startlingly lower than expected!” because that is one of the primary sums Government uses for Cost Of Living increases to services.

Therefore, if "Inflation is lower than expected!” (OMG!) then Government saves money by not increasing YOUR benefits such as Social Security, Veterans Payments, etc., etc.

It is — not always, but nearly — a rate "lower than anticipated!” to steal from you via lesser quality cash.

In the case of last week, these lies were extreme. Our Epstein-Adjacent Prez announced CPI was "lower than anticipated!” at only 2.7%…which is a ridiculous claim to anyone…you know, who is alive in America and paying money for things.

Worse — assuming it could become worser — the Government stated that Food was at a rate of…seriously, I am not joking you…only 0.0% increase.

*sigh*

It is becoming progressively difficult not to despise the United States when its Leadership tells such obvious and insulting untruths. I don't expect veracity but I do expect verisimilitude.

Facts, Fam, Just Facts

How do we KNOW, as in, FOR A FACT, the Government is lying?

Well, there is the anecdotal, in the sense that BOTH of the "Big Two” fast food chains — McDonald's and Wendy's — announced during their earnings reports Consumers were "under increasing pressure” to afford dining in their establishments.

NOT GOOD. Remember, without disrespect, this is the LOWEST cohort of the "eating out” supper club.

But things get worserer and worserer for American Consumers…To Wit…

The "Mid Level” dining experiences at places such as Chipotle and Cava likewise brought in weaker reports. These had been seen — until RIGHT NOW — as supposed bulwarks indicating "AKSHULLY, we are NOT in a Recission because Middle Income diners are doing just fine, You Guise!”.

Except, despite the lagging nature of the Mid Level consumer diners, we now see they are suffering as well. (By the way, what kind of tinpot "Economist” would NOT expect this to be the case!?! Poor People, no offense, hurt FIRST…then a few months later, Middle Income People ALSO hurt…how could ANYONE believe every social stratum would feel the pinch simultaneously? It makes no Sense!)

Anyway, one (Cava) even claimed these Consumers were "in a fog”…Er, in fact they are in a deluge…of higher prices and stagnant wages…during an era of Mass Human Replacement (MHR) by robots.

Hey Somerset, Anecdotal Isn't Factual

Okay, I grant you that one, Sportsfans. It is possible, not plausible but possible, that maybe Consumers are doing just fine and that foodstuff prices aren't increasing AT ALL (remember that 0.0% CPI figure) and suddenly, en masse, everyone in America began cooking at home…for reasons.

Alright, we'll allow you that little absurdity…but what about Supercore Inflation?

Supercore Inflation is what proverbial "Big Money” (Hedge Funds, Bond Markets) takes into account because — AGAIN — most of us assume the Government is a Lie Machine constantly telling lies.

How is Supercore figured? VERY GENERALLY, you take out Food Prices and Housing Prices (with Energy Prices) and see what Inflation you experience afterward.

Guess what you get this month? Up or down? Can you suppose? (I believe in you. You can do it.)

That's RIGHT! When accounting for Supercore Inflation the rate is, in fact, NOT the "lower than anticipated!” figure of 2.7%…but an astounding 3.19%…

Now, in fairness, that was above what Your Humble Correspondent expected. I considered maybe 2.9% but not the REAL sum.

Except, it does basically track with the lived experiences of everyone I encounter on the street.

Moreover, it does track with the conversations I surreptitiously eavesdrop. (Importantly, you must "overhear” and not instigate in order to avoid skewing results…if someone you don't know is checking out at the store in front of you and randomly begins speaking to the Clerk about "rising prices” then THAT is a legitimate data consideration.)

Yet…As Always…It Gets Even A Little Worererest

Coming back around to PPI (Producer Price Index), this is the figure typically released a few days following the CPI (Consumer Price Index) and purports to measure the Inflation rate for Producers.

Thus, when an acquaintance inquired of Yours Truly early on about Inflation my reply to him, "Whatever they claim is CPI on Tuesday, look for the PPI on Thursday to know the truth. If the figures match…maybe I'm entirely mistaken…if there is a large disparity…we're in big trouble”.

Let me provide the Dullards amongst us another opportunity at Fiscal Redemption. (NOTE: You always give a man unlimited chances. No joke. Help him until he "gets it”…then you can rest.)

Anyway, what do you ponder was the PPI rate? Higher or "much lower than anticipated!”? Hmmm?

That's EXACTLY right! It WAS higher than expected. As matter of fact, FAR higher.

Economists believed it would be 0.3% and instead it was 0.9%…so three times as much. For seriously.

Now, at the SAME TIME the Government is "Headline Claiming” (for Controlled Media) that Consumers are living in a Golden Age of Low Inflation, they are releasing more technical analysis that shows…er, whoa, this Economy is faltering three times WORSE than even the best of us believed of it.

Again, while the Government says Consumer Inflation is static (basically unchanged) the Producer Inflation is far worse…but "somehow” the Producer will "eat those costs”…because…more reasons.

This, in addition to the reality everywhere you go prices are higher. Incidentally, should YOU PERSONALLY live in an area where prices are going down, by all means, share that location with the rest of Humanity because we all would like to move there immediately…and I'm sure in No InflationLand that would not cause Home Prices to rise either…because in No InflationLand no prices ever increase for any reason…despite, MHR (Mass Human Replacement), a minimum 15% Tax Increase on EVERYTHING via Epstein-Adjacent Prez Tariffs, or the happenstance of us all relocating together.

That's basic Economics, Fam…well, that's GOVERNMENT Economics, anyway…

A Little Mention on the Federal Reserve

The Conventional Wisdom (always wrong) is that "amazingly low Inflation!” will spur the Federal Reserve to drop interest rates. This caused bank stocks to rise, and indeed, led to a general "rally” in commodity prices.

Will the Fed lower rates?

I don't know. You don't know. No one can possibly know.

That is a POLITICAL decision (despite what Fed Governors insist) and has VERY little to do with Economic theory. If it suits their purpose, they will drop them. If not, they leave them. If otherwise, they might even marginally raise them.

Primary issue to comprehend as a Citizen is YOU DO NOT KNOW THEIR PURPOSE.

You think if they want revenge on Trump they wouldn't instigate a "minor crash” of 15% to 20%? Have you never studied Economic History? Well…in fact…most haven't…so allow this reminder, all-time highs every day are NOT natural or fiscally desirable. It is wholly artifice. Manufactured Hysteria.

Merely look at any stock (with obviously some exceptions) since the Tariff announcement and prices have in many cases risen by anywhere from 50% to 200% absent underlying practical foundation.

Now, if a company develops Cold Fusion…okay. An engine that runs on Coca-Cola for half the price of petrol…okay. A CIA backed enterprise instituting a massive control grid to ensure you remain a Slave forever…ohhh, that's actually happening…Palantir *cough* *cough*…so maybe don't bet against the CIA when you live in CIA-Burgh…

But OTHERWISE, these prices do not reflect — in my personal opinion WITHOUT GIVING FINANCIAL ADVICE — any kind of reasonable value.

To me? This looks as if Government is preparing for the "rug pull” of the Century. Maybe the Millenium.

Next Fed Meeting Predictions

All that is being said here is…whatever the Federal Reserve intends to do:

• It is NOT based on Economics
• It will serve THEIR interests, not YOUR interests
• It may happen in September, Historically the worsterest of all months for stocks

So…just be careful out there…and I KNOW some of you will be saying, "Yessir, that's the reason I done put all my shekels in Gold and Crypto Coins!”.

…Uhhh…you really believe the individuals who rule this planet haven't considered that aspect?…

Really?

When the thing (whatever it is) gets implemented, your shiny Costco bars and BTC won't save you.

PSSST — They REALIZE you've been hording. If necessary, they'll pull a Roosevelt and outlaw gold. They've done it before. Same with Crypto. And if you are thinking, "They can't because it's too diffused and ad hominem via copium!” then you REALLY don't know where you are living, Chum.

Thanks For The Dystopian Nightmare, Fellah…But What Now?

As I have repeated, many times, I do not know.

I do not know when "the thing” being planned is coming. I do not know its method, but if you paid careful attention there are some clews (old-timey spelling) in this piece. I do not know how anyone but the top 10% or maybe 5% will survive MHR (Mass Human Replacement).

I do know that chunks of metal or digital chits won't save you, even when most of you sincerely believe they are "safe”. I do know that living in the woods is not a viable scenario for most. (Try going without toilet paper one day in your own home, much less in Nature…then try it without an aquifer.) I do know that from an overview it is so very clear something nefarious is being currently instigated for The People.

Also?

I know that Inflation is much higher than Government is telling us.

And you know it too.

Now go watch that musical…because you must remember even when you're getting Blitzed there are still beautiful redheads in the world.

Guy Somerset writes from somewhere in America