Recently, the “official” inflation data was reported and it indicated that the inflation rate was “flat” from month -to-month and up only 3.2% on a year-to-year basis. Predictably, the markets reacted very favorably to this news and the markets advanced. A lower inflation rate creates a condition where the Fed may be able to reduce interest rates in the near future–helping markets advance even further. Isn’t it interesting that the “official” inflation rate shows inflation getting under control just as we enter an election year and the party-in-power badly needs some good economic news to campaign on?

Let’s look at the difference between the “official” inflation rate and the “real” inflation rate. Market insiders surely realize this difference exists, but the masses do not realize the difference between the “official” data and the real-world inflation the masses actually experience. The first link is an article from the establishment media welcoming the lower inflation data that has just been released by the current government employees. It also cites what I have called the most useless piece of economic data being reported. It is called the “core inflation rate” which “excludes volatile food and energy costs.” I would like to point out that the only people experiencing the “core inflation rate” are resting in cemeteries. All living people use lots of energy and eat lots of food so the energy and food inflation rate must be included in any real-world data about inflation.

As I’m sure readers of this blog realize, statistical assumptions, weightings and consumer items included in the official inflation rates are subject to easy manipulation. If a government wished to show a lower inflation rate than really exists in order to make itself look good (and they all do), one can decide what figure the governmental leaders want reported and then the data calculations can be continuously reverse-engineered to come up with statistics that justify the data desired to be released publicly. One can remove from the “basket of items” included in the inflation calculations that are going up and insert items into the calculations which are going down in price. Statisticians can also alter the weightings of the items in the basket of items which comprise the released inflation data to arrive at a predetermined total to be released to the public.

The second link reports the inflation rate in the real world, as calculated by a private entity that is not part of the government. In other words, it can report the inflation rate as it really is, not the inflation rate desired by government insiders. The private agency operates the “Shadowstats” website which is a private statistical service which releases its full calculated data to subscribers. However, it does release some data to the general public. I noticed that this site had disappeared from the internet for a time when i looked for it recently, and the site’s language explains it is now coming back on-line after digital difficulties removed the site from the internet. Usually, more data is available than is now shown in the second link, but I’d like to draw your attention to some of the findings it asserts re: the real-world economy and inflation rate.  The site includes the following comments: “The economy remains in a deepening downturn,”…Headline inflation faces a near-term rebound” [and]… “The Bureau of Labor Statistics reveals it can’t measure the CPI properly.” The chart comparing the “official” rate of inflation to the “real world” inflation rate calculated by Shadowstats indicates the official rate of inflation runs about 4% lower than the real world inflation rate. The current rate is about 8% in the Shadowstats chart. The third link is an inflation gauge calculated by another private reporting entity. It cites the inflationary increases since the beginning of the Biden administration (February, 2021 as the base month). It asserts that Biden’s “reckless spending” is a major reason for the inflation increases under President Biden. In light of what you will see in the second and third links, I’d urge readers to take all “official” inflation rate reports with more than a grain of salt until after the next election. They will all be tailored to try to elect the incumbent administration.

There is another important development in the world of global finance. Moody’s, a respected rating agency, has changed the outlook on the USA’s credit rating to a “downgrade” category. This often precedes an actual reduction; in this case it would mean a reduction in the rating of US Treasury debt. If this happens it will weaken the case for the US dollar remaining the global reserve currency. Such an action could have huge ramifications. Opinions in the financial press vary from warranted concern to being dismissive of it. The fourth link offers a variety of links to articles about this important financial development in the gradual decline in the status of the US dollar.

Biblically, we are continuing to head toward a prophesied day of reckoning when the world financial/monetary system will experience a collapse which will be followed by a new “beast” system. The current financial/monetary system is dubbed “Babylon the Great” in biblical prophecies, and it will be overthrown by a cryptic coalition called the “seven heads and ten horns” in Revelation 17. The current system has no clue that it is fated to be overthrown, which argues that the “seven heads and ten horns” coalition is engineering, behind the scenes, a hidden coup against the current world system. The beast system will at some point institute deeply-idolatrous worship of a false messiah figure called the “beast” (Revelation 13:11-18).  Maybe the “seven heads and ten horns” won’t be so hidden. The expanding BRICs alliance have openly called for the removal of the US dollar as the global reserve currency. It includes Russia, China, India, Brazil, South Africa, etc. This coalition is expanding and it may openly attack the dominance of the US dollar in the future–fulfilling the prophecy in Revelation 17-18.

[Personal Note:  In recent months, I have had a weakening of the eyesight in my right eye. After seeing my eye-doctor I was referred to a retinal specialist for possible surgery on my retina. After more tests, that specialist informed me my retinal problem had “self corrected” (Praise the Lord!), but there were still eyesight problems to address. I had more tests for glaucoma, but no corrective action is needed yet for glaucoma. I now have new eyeglasses, but I still have vision problems in focusing the two eyes together as my right eye is no longer correctable to 20/20 vision even though the left eye is. That means the new eyeglasses are not fully balanced between the two eyes, and this leads to on-going eye-strain. This creates obvious difficulties in doing computer monitor work, reading books or newspapers, etc. Until my eyesight gets used to the new glasses, working on a computer is an effort. I’d very much appreciate the prayers of readers for Divine help in again having reliable eyesight to use in blogging, reading, etc.! Due to the vision problem, my posts may generally be shorter in the future out of necessity]