Underreported consumer #PriceInflation came in at a new over 40-year high this past week as the US government’s Bureau of Labor and Statistics admitted to a year-over-year -9.1% loss in the fiat Federal Reserve notes or fiat US dollar’s purchasing power. Of course, the US government’s statistics department has the ongoing motive to underreport price inflation constantly and seemingly forever more since the Federal Government makes payments to Social Security, pensions, and many other unfunded liabilities, accordingly, indexed to grow along at the official underreported inflation rate.
There are only a few developed economies in the world with worse price inflation than the United States is currently suffering. #HidethePainHarold‘s inflation meme got an update. Unfortunately, poor Harold’s tiny +3% raise at work won’t come close to covering his loss in living standard. At the very least, he got tons of like on Twitter. Hopefully, he doesn’t decide to investigate the inflationary rip-off further, for if and when he finds out that real price inflation is more likely in the middle teens at the moment, it may be difficult for Harold to distract his ongoing pain with inane social media memes mocking the insanity of our fiat financial world ongoing. One thing you can take away from this week’s SD Bullion Market Update is a simple mathematical formula you can use to understand how badly inflation ruins people’s purchasing power. The #RULEof72 is simple; divide 72 by the inflation rate to determine how quickly your power halves or loses -50% in real terms. For instance, if we continue this 9.1% CPI official inflation rate, we’ll halve our collective fiat US dollar purchasing power by half within 8 years. Before this time of the year in 2030, whatever your income is, it buys half what it does today in summer 2022. It’s worse than that, so if we use the old 1980 methodology for measuring price inflation near 17% per year at the moment, our incomes halve in purchasing power by the fall of 2026. I am taking the attitude of the price discount advantage taker, squeezing more bullion ounces for the long haul, especially at these relatively ridiculously low spot price levels.
Disclaimer:
we are not financial advisors, and we are creating a report based on data we have found. These are opinions only. please contact a financial advisor as you may lose your entire investment.