Bitcoin: CPI was ONLY 8.5% for July

Central Banks have long controlled the money supply in Nations.  It started in England, with the first Central Bank, being controlled by the Rothschild Family:
 

 

Central Banks have entirely too much control, and they absolutely manipulate currencies, and entire economies based on those currencies.  Central banks routinely place dictators, and regimes in countries they want to control.  
 

Now, it would appear that the parabolic money supply, and high reserve balances on the books of the US and European Nations have risen so high they cannot be controlled.  Japan is the only nation with a debt to GDP ratio over 130% that has not YET defaulted on government debt.  Dozens have defaulted in the past, and the US is at 128% debt to GDP.  Raising rates high enough to truly control inflation would make debt payments unaffordable, even for the US Fed.  Monday we wrote that a former Federal Reserve employee speculated recently, that it would take over 30% Fed Funds rate to control inflation.  That would destroy all global economies and cannot happen.  Rather, it would appear they will manipulate the CPI calculation and tell us now, that YOY inflation is down to 8.5%.  This sets up the Fed to pivot later this fall.  Perhaps early in the 4th quarter, we will have to wait and see.  
 

In the meantime European banks appear to be getting ready for bank runs.  In the UK, they will stop printing 20 Euro and 50 Euro bills soon, and limit withdrawals from Nat West, a large commercial bank in the UK:
 

 

The latest US CPI print came back at 8.5%.  This compares to last year in July.  However, real food items we all need to survive have inflated this much, since last July:

• Eggs + 38%
• Butter +22.2%
• Coffee +20.3%
• Chicken +17.6%
• Milk  +15.6%
• Baby Food +15%
• Oranges +14%
• Potatoes +13.3%
   

That’s not 8.5% is it?  No, which hints to the fact that CPI is a manipulated statistic which is in fact, ratiod back to 1982 to 1984 inflation.  In addition, CPI does not account for these basic food items listed above.  It compares the USD to other currencies and some hand picked commodities to build the index.  Through manipulation our “CPI inflation” is kept lower than real inflation.  This allows borrowing rates to be kept lower, and raises for government employees to be, likewise, kept lower.
 

These statistics being manipulated helps to hide inflation, the hidden tax.  High inflation hurts productivity as this next chart shows.  Labor productivity is at all time low levels, dating back to 1950:
 

 

Everytime labor productivity drops this low a recession ensues shortly after.  If and when this one does kick off, looking like this fall, we will discuss it here.  This has been very easy to predict.  Below is another chart for labor productivity in output per hour.  Two straight quarters now are negative:

 

 

Investors are leaving the dollar and the DXY is dropping further as we have predicted recently:
 

 

It is 104 now, lowest since this May.  All of this means investors have to find new stores of value to invest in as bonds, and equities have failed miserably this year.  Bloomberg reported today, that Bitcoin is becoming a risk off asset, click here to view on twitter.

 

This is because, as the world’s currencies lose buying power.  Food, Energy, Utilities get more expensive, and for some, out of reach.  This moves risk on assets like Bitcoin into the risk off category.  That means a more volatile asset like Bitcoin, will become less risky to those attempting to hedge this high inflation!  Same goes for other scarce assets like Gold, classic cars, and land.  If Blackrock and their $9 trillion in assets under management are intrigued enough to partner with Coinbase and offer Bitcoin to their institutional investors.  Is'nt that good enough for you?  This could be a $1 trillion + shot in the arm for the Bitcoin market cap over the next few months.  We are not financial advisors and this is not financial advise.  Inflation is going to ramp up after the SPR (Strategic Petroleum Reserve) is further depleted, causing Oil to spike up again.  Also, after the inflation reduction act is implemented this fall.  Expect more inflation, not less.  Regardless of the CPI numbers in the fall.  Those are never accurate to look at real inflation.  Once you begin looking at inflation, you see it.  It is a tax, and Bitcoin hedges it perfectly.  That is why Bitcoin is going risk off.

Neutral ATM is here to get everyone off of zero Bitcoin.

 

Give Neutral ATM a try.  We have low rates, convenient locations and we are expanding. Contact Neutral ATM, we will answer all your questions about Bitcoin and using our ATM machines. Find a Neutral ATM Bitcoin machine location near you.