The purpose of this book, Biflationary Depression: Protecting Assets From Inflation & Deflation In A Keynesian Collapse is to:
Protecting Assets From Inflation & Deflation In A Keynesian Collapse
by Daxton Brown
$12.95 from Amazon.com (Order)
This groundbreaking book covers the concept of simultaneous inflation and deflation: Biflation, and how to protect your
assets as the collapse of the welfare state pushes us into a long term depression. Also presented is a theory of money based on physics rather than
that gives the reader new insight into how to interpret economic trends outside the status quo of Keynesian theory.
This is must-read practical economics you won't find from mainstream publishers.
Your government and the banking system are trying to steal your livelihood from you and your family. Where the obvious theft comes in is that instead of sending you an honest bill for services (taxes), they inflate the value of what you need to purchase. Most everyone is familiar with this concept of inflation theft - every time you go to the gas pump or grocery store it costs more as you are pushed into higher tax brackets. But even worse, the government engages in biflation, simultaneous inflation and deflation, inflating the costs of goods while deflating your assets. They get you coming and going.
This concept that the government and the Federal Reserve can create inflationary AND deflationary policies which simultaneously steal from your livelihood is the important concept to take away from this book. Unless you understand how this is possible, you wonít understand how to protect your assets in the Biflationary Depression we now find ourselves in.
Traditionally, people have only thought in terms of protecting themselves from inflation, while savers actually rejoiced at deflation which would increase the value of their dollars. But clearly something different is occurring, which can be shown by two quick observations:
The price of things you need or could use like food, gasoline and commodities including precious metals are all inflating.
The price of assets and income sources like homes, savings rates and wages that you depend on to make a living are deflating.
In other words, the common man is screwed coming AND going. We can expand the list of economic items inflating or deflating and their negative effects, but readers can no doubt provide many of their own examples. That we are clearly in a biflationary period will be a Eureka moment for many, but after that shock wears off, the question quickly turns to what you can do about it. Fortunately, while the government, the Federal Reserve and the banks like to portray themselves as invincible and in total control of your destiny, you do have the power to at least mitigate the negative effects of their policies. But clearly you will need to adapt your investment and personal living strategies to cover simultaneous inflation and deflation, which is not the same strategy as traditional inflationary hedging alone.
- Show how your wealth is systematically stolen by BOTH inflation and deflation Ė Biflation.
- Define what money is so you can understand the theft process.
- Show you how your government and bankers must appropriate your wealth through monetary manipulation to stay solvent
- Give you the financial tools for avoiding that theft.
the seemingly tame headline inflation numbers, consumers never seem
to see price declines in certain categories like gas, food, education and
health. They also see continuous erosion in the value of their homes, wages and 401ks. So, it is pretty
obvious what we have here--Biflation--instead
of inflation or deflation alone.
Biflation is a state of the economy where inflation
and deflation occur simultaneously.
price increase of commodities is caused by the increased money flow
(via loose monetary policy) chasing them. On the other hand, the
growth of economy is tempered with high unemployment and decreasing
purchasing power. This has resulted in a greater amount of money
directed toward essential items (inflation) and away from
non-essential items and things required credit to buy such as house
and cars (deflation).
One of the most important results that biflationary theory allows us to do is create a Biflationary Index,
akin to the Misery Index of the 1970s but much more powerful. The Index presented in Biflationary Depression clearly shows our problems started in 2005, not 2008, and that they have not bottomed out.
You feel like you are in a depression because you are, no matter what the Ministry of Disinformation says. Things haven't been this bad since the malaise days of Jimmy Carter.
Biflation Stagflation Inflation Deflation Stagflation
economics, stagflation is a situation in which the inflation rate is
high and the economic growth rate is low. It raises a dilemma for
economic policy since actions designed to lower inflation may worsen
economic growth and vice versa. The term stagflation is generally
attributed to British politician Iain Macleod, who coined the phrase
in his speech to Parliament in 1965. In neo-Keynesian postwar
macroeconomic theory, inflation and recession were regarded as
has proven very costly to eradicate once it starts, both in human
terms as well as budget deficits. The most notable example is
when Paul Volker, with Ronald Reagan’s bless, allowed interest
rates to climb above 15% to successfully reduce inflationary
pressures in the early 1980s.
fact, Reagan had come to power in part because of the political
impact of one measure of stagflation termed the Misery Index.
Derived by the simple addition of the inflation rate to the
unemployment rate, the Misery Index reached 21% under President
Carter and was used to swing presidential elections in the United
States in 1980. The current 2011 value of the Misery Index
using pre-1980 formulas to calculate unemployment and inflation, has
to the Austrian School maintain that creation of new money ex nihilo
(out of nothing) benefits the creators and early recipients of the
new money relative to late recipients. Money creation is not wealth
creation; it merely allows early money recipients to outbid late
recipients for resources, goods, and services. Since the actual
producers of wealth are typically late recipients, increasing the
money supply weakens wealth formation and undermines the rate of
increase in the money supply rate of growth coupled with a slowdown
in the rate of growth of goods increases the rate of price inflation
by definition. What we have currently is a fast increase in price
inflation (especially fuel and food) and a decline in the rate of
growth in the production of goods leading to unemployment. But this
is exactly what stagflation is all about, i.e., an increase in price
inflation and a fall in real economic growth.
is the normal outcome of loose monetary policy. Stagflation is the
natural result of monetary pumping which weakens the pace of economic
growth and at the same time raises the rate of increase of the prices
of goods and services. For loose money policy to work, people would
need to be fooled into thinking the increase in money was the same as
prosperity, but that game soon wears thin. Where the
stagflation model breaks down is that loose money has also led us to
experience massive deflation from credit collapse, most notably in
housing (inflation + deflation). This leads to a refinement in
terms called biflation.
(sometimes mixflation or even screwflation) is when the economy
experiences both inflation and deflation simultaneously.
The term differs from stagflation in which there is low growth with
inflation, and thus is outside traditional economic analysis.
The concept of Biflation was first introduced by Dr. F. Osborne
Brown, a Senior Financial Analyst for the Phoenix Investment Group.
Biflation, there's a rise in the price of commodity/earnings-based
assets (inflation) and a simultaneous fall in the price of debt-based
assets (deflation). Insidiously, this is what the Federal
Reserve is shooting for with its loose money policies because it:
Bails out banking interests and Wall Street by inflating asset
prices. It also bails out the Federal government by proving
free money beyond tax revenues.
Screws Main Street and individuals by devaluing the currency,
devaluing their wages, devaluing personal assets like homes awhile
conversely inflating the cost of food and energy essentials.
inflationary aspect of biflation comes when an over-abundance of
money is injected into the economy by the central bank. Since
essential commodity-based assets (food, energy, clothing) remain in
high demand because they are the basis for survival, their price
rises with the increased volume of money chasing them. The increasing
cost of purchasing essential assets is the price-inflationary arm of
deflationary aspect of biflation comes because the economy is
tempered by increasing unemployment, decreasing purchasing power and
the decreased velocity of money. Bluntly, no one trusts anyone else
in business transactions because of bankruptcies and institutional
fraud normalized by the government. As a result, money is directed
toward buying essential items and directed away from buying
non-essential items. Debt-based assets (homes, high-end automobiles
and other typically debt based assets) become less essential and
increasingly fall into lower demand. As a result, the prices for them
fall due to the decreased volume of money chasing them. The
decreasing costs to purchase these non-essential assets is the
price-deflationary arm of biflation.
Leads To Civil Unrest
you were a statist government and you wanted to crush a rebellion of
the lower classes, certainly you would employ Biflation as a weapon
of war. It allows you to support the bureaucracy and the
bankers and corporatist hangers on who milk government contracts,
while simultaneously economically crushing those civilians leading
the rebellion. As such it is a modern siege tactic, somewhat
akin to poisoning wells and food supplies as performed by our
geographic boundaries have been supplanted by ideological and
political boundaries of the state in this age of the Internet and
Social networking, Biflation acts as a much more effective economic
weapon than burning food supplies and polluting the drinking water;
it is sort of the neutron bomb of destructive economic policy.
expect this biflationary period to blow over anytime soon. U.S.
debt levels are so astronomical that the Federal Reserve cannot
increase interest rates without collapsing our system because of the
increased interest payment that would be needed to service this
debt. Loose money guarantees inflation, but it also induces
debilitating deflation as businesses realize the game is fixed and
transactions grind to a halt. Loose monetary policy is the only
option left, but it guarantees a slowing economy as money velocity
you couldn’t pick a better weapon of war than biflation to
demoralize a population and crush its economic base; it is better
than even bombing the industrial structure of a country. If the
Federal Reserve and President don’t know this, they are
idiots. If they do know they obviously are at war with the
people they are supposed to protect.
Other books by Daxton Brown
Surviving Civil War II
Preparing For Economic, Social & Political Collapse
Now Available Through Amazon.com
It is clear that we are in the early stages of a Civil War brought on by the economic collapse of the entitlement state. "Surviving Civil War II " isn't a call to revolt, but a manual on how to survive the civil war you already sense is in progress. This book provides the reader with the historical, economic, political and social background necessary to cope with this modern civil war, which will look nothing like our first Civil War.
The first great American Civil War was about ending slavery. Civil War II is about the same thing, except the slave owners in this case are the bureaucrat and entitlement classes who have yoked productive citizens and future generations to a grindstone of $100 trillion of unfunded social liabilities, environmental Gaia worship and bureaucratic strangulation.
This time things are different.
We cannot get out of this financial and regulatory black hole unless one of two things happens:
A) The productive class resigns itself to being tethered to a permanent millstone of egregious taxation in support of the consumption class of bureaucrats and entitled, or
B) There is a Civil War and revolt of the productive class, essentially an economic default on the obligation to support the non-productive classes, which realigns the entire system.
There is no need to spend time arguing about which option will be taken. That which cannot be, cannot be. There is no way to overcome the size of future entitlements except through default by the productive classes on the state's overextended promises. Since option A, the status quo which leaves the current governmental order in place is untenable; we are left with option B, revolt as the path of necessity.
But this book is not advocating a war of freedom, an insurrection, uprisings or anything disruptive of any kind as solutions to our current dilemmas. Instead, the forces of disruption are already upon us and at work, so the nature of this book is entirely defensive and reactive, not proactive. This isn't a call to break into someone else's home, steal their property, rape their women and kill the owner (as anarchists might suggest) in the pursuit of some abstract revolutionary freedom. Instead, this is a call to bolt your door, hide your valuables and defend yourself from others who are now trying to get in to your home to rape, pillage and enslave you. Apparently that is a revolutionary concept to many.
In other words, you canít change the devolutionary course that we are on, except at the margins; the Leviathan of state is auguring in of its own colossal weight. If you are smart though, and hunker down tightly enough, you might just get through this mess with some health and a little wealth intact and be prepared for the rainbow at the end of the storm.
Proceeds from this and other work helps support my ongoing investigation of payoffs to Harry Reid (Harry: Money Mob and Influence)
For a more 'Prepper' oriented book, see Going Galt: Surviving Economic Armageddon
Part I Civil War II
Civil War Inevitable
Civil War Defined
Civil War In Progress
Philosophical Roots Of War
Modern Debt Slavery
Roman Slave Revolts
Part II Political Landscape
Constitution In Conflict
Part III Demography of War
Part IV New Civil Warfare
Weapons of War
Neutering the Military
Calling Out The Troops
The Religion Of Peace
Part V Economic Warfare
Keynesian Epic Fail
Stagflation Biflation Inflation Deflation
The Fed & Monetary Collapse
The Rise of Crypto Cash
Medicaid, Medicare & Obamacare
Outsourcing Our Future
Cyclical Financial Implosion
Confiscation of Wealth
Tax The Rich
Failure of Starve the Beast
Coping With Economic Collapse
Part VI Social Upheaval
Part VII Environmental War
Green Energy Dystopia
Global Food Crisis
Part VIII Fighting Back
Philosophy Of War
Black and Gray Markets
Now Available Through Amazon.com