Price level deception

In order to better understand NWO-EU's deception, we will need to explain some economics in a few articles. EU's model is extremely flawed. EU's propaganda promises Eastern European countries that they will converge with Western European in terms of per capita income. In reality, it is exactly the opposite. EU participation hurts their economies. They would be much better off if they did not participate. The same is true for poorer Western European countries like Portugal, Spain and even Italy.

We will start with explainig price level. EU's propaganda uses price levels to deceive people and create wrong impressions. There are two types of comparisons for a country's price level. First, it can be compared with price levels in the same country, in previous years. Generally prices rise but there may be periods when they fall. An increase in the price level is called inflation and a decrease is called deflation. They are measured as a percentage.

If for example, in a country, a studio apartment's rent was 200 euros last year and is 220 euros this year, we have 10% increase or inflation in rents, as long as  similar increases happens to all rents. The increase may not be the same in all types of real estate. The increase in rents, is the average of rent increases in all types of appartments and offices.

Price increases are not the same in all products and services. A country's inflation is the average. When we say that we have 5% inflation in a country, it does not mean that all prices rise by 5% but that this is the average rise. In certain goods and services, prices may be even falling. Usually a weighted basket of goods and services is used to calculate inflation.

The second type of comparison of a country's price level is done with price levels in other countries. Let's say that in country A, a two-room apartment is rented for 300 euros. A similar apartment is rented in country B for 150 euros and in country C for 600 euros. Or a takeaway coffee costs 2 euros in country A, 1 euro in country B and 4 euros in country C. Country A has double price level compared to country B. Country C has double price level compared to country A and quadruple compared to country C.

There are tables that give price levels in different countries. Again as in the case of inflation, it is the average. If for example the index in one country is twice as high as in another country, this does not mean that all prices are twice as high but on average prices are double. In some products and services, price ratio may be considerably lower and in others considerably higher.

Usually, the economic measures we examine should be real, without the effect of the price level. In a country, the numbers for Gross National Product (GDP), per capita income and other economic measures should be revised with out price level effect. We should find real growth and not that due to the rise in the price level. A very important economic measure is growth rate as it will be explained in future articles.

It is the increase or decrease in GDP or per capita income. It can also be used in sales or investments figures. The growth rate has to be real. EU's propaganda uses nominal growth rates to mislead people and give the wrong impression about growth rates. They present inflation as growth rate. EU and especially Eurozone have among the lowest growth rates in the world. If this is not complete failure than what is?

It is very important to comprehend this because it is one of the common ways of deception used in NWO - EU propaganda. Let's say your salary is 700 euros, a take out coffee costs 2 euros and a studio apartment is rented for 200 euros. In ten years your salary is 1400 euros, take out coffee costs 4 euros and the studio apartment is rented for 400 euros. You didn't get richer but only prices doubled. You are at the same income level, with twice higher prices.

The different price level causes a distortion in the ranking of GDP, per capita income and other economic measures. Per capita income measures how rich a country is. Nominal prices include price level effect. But this is not real. In order to correct price level distortion, we divide nominal prices by the cost index. Thus it falls in countries with a high price level and rises in countries with a low price level.

The corrected figures are denoted as purchasing power parity (ppp). We must be careful and always look at these values because they give the real picture. Nominal prices contain distortion due to the price level. There are a few exceptions where we should look at nominal prices. In Forex (foreign exchange market), nominal and not purchasing power parity prices are used.