There is far too much disinformation and purposeful conflation going on in the media right now. With Biden constantly boasting about ‘lowering inflation’, millions of Americans are being fooled into thinking that Biden is bringing prices down. First, the President cannot directly affect prices, especially by lowering them. The only way a government official could directly reduce prices would entail seizing the economy (communism/fascism) and/or commanding that the prices be lowered.
What is inflation?
Technically, monetary inflation refers to an increase in the money supply. As with any scarce resource, increasing the supply reduces the value of each unit. There are currently around 21 trillion dollars in existence. Nearly all Americans hold a large percentage of their liquid net worth in the form of US dollars. This means that whenever the government prints (or borrows or creates) more dollars and infuses them into circulation, every dollar-holder is robbed of the value of each of their dollars. In simple terms, if the government printed another 21 trillion dollars, your USD would lose around half of its value overnight. This would mean that products and services would double in price overnight. In common speech, people often use inflation to refer to price inflation – the increase in prices that results from the increase in the money supply. A 10% annual inflation rate means that prices have increased by 10% since the same day a year ago. In the 1970s, the federal government changed the methodology that calculates the inflation rate, allowing the DC thieves to grossly underestimate the actual rate.
The Federal Reserve claims that its target inflation rate is a modest 2% per year. Even if they achieved their target rate, this would still rob every dollar-holder of 1/50th of their purchasing power each year. The inflation rate when Biden took over control of DC in 2021 was around 2%. He pumped trillions of dollars into circulation, largely using corona-fascism as justification – and caused the inflation rate to skyrocket. The official DC Empire’s statistics claimed that it was only 9% annual inflation at its peak, but keen observers noticed that if they used the same formula as the government did in the past, the real rate was far closer to 20%. In many sectors of the economy, though, inflation was more like 100% (prices doubling over one year). This depends largely on the supply (the amount) of the given product or service. More money matched with the same amount of products and services leads to price inflation.
Now, let me explain why the media is frustrating me more than usual. They are neglecting to mention that inflation (both monetary and price) is literally the INCREASE in the supply of money and the cost of goods and services. Another way to explain it would be to call it ‘acceleration’.
Inflation rate of 10% annually = prices increase by 10% per year
Inflation rate of 0% annually = prices remain unchanged
Deflation rate of 10% annually = prices decrease by 10% per year
There is always inflation. There is no disputing this fact. As long as the federal government exists, it will always continue printing, borrowing, and creating money. This means that prices will likely continue to climb, likely at a rapid rate. Compare this to a vehicle (or airplane, or elephant) that is CONSTANTLY accelerating. It is picking up speed. And it cannot stay still or go backwards. If you want prices to remain steady, you want the car to stand still. If you want prices to return to the much lower numbers we had just three years ago, you are trying to put the car in reverse. Biden and his other evil cronies in DC are currently driving the car. They will never stop. For the past two years, they were driving us all (toward tyranny and financial doom) at a very rapid speed. In 2023, the elites have boasted about slowing down that car, causing us to travel to destitution slightly slower than before. And for that, the socialists running the government expect congratulations.
Imagine another scenario: Your spouse is beating you up and causing permanent injuries. He is punching you in the nose, kicking you in the abdomen, and stabbing you in the back. Each week, he increases the intensity of the beatings by a large degree. If he begins increasing the intensity of the beatings each week by a smaller degree, would you thank him, or would you continue to do everything in your power to escape this abusive situation? Remember, decreasing the intensity of the beatings or stopping the violence altogether are not options.
Imagine that your home is flooding with water at a rate of one inch per hour. You want to stop the water from leaking into your home, not just to slow the leak to 0.9 inches per hour. If a person turns up the water pressure on your main valve and causes the leak to flood your house at two inches per hour, you probably would not thank them if they lowered it back down to 1.5 or 1 inch per hour. You’d want the leaking to stop entirely.
So, when you see the news story about Biden ‘lowering inflation from 9% to 4%, marking the lowest inflation rate in two years’, keep in mind these key facts:
- The inflation rate when he took office was around 2%.
- He printed trillions, harming all dollar-holders permanently
- A 4% devaluation of your money each year is still brutal
- The real inflation rate is more like 20%, but may be much higher
Biden and his puppet-masters go even further, though. They claim that real wages have increased over the past few years. Take the baseline gross income (last year’s income, for example) and multiply it by the inflation rate, and add those two numbers. Now, compare that sum to your current annual income.
For example: Alu earned $100,000 in 2022. Inflation is 10%. Alu’s income in today’s dollars would be $110,000. If Alu is earning less than $110k in 2023, his ‘real wages’ have decreased. Alu was hoping to get a 10% raise this year, but his boss can’t really afford it. So, Alu has to make some budget cuts.
And guess what?
Real wages have decreased 4.4% from June 2021 to June 2022, even according to Biden’s Bureau of Labor Statistics. And the Federal Reserve said in 2022 that real wages are down 8.5%. If you haven’t received a pay raise of around 10% per year since Biden took office, you likely had a decrease in your real wages.
What could be done?
Remember how I said that inflation in the supply of dollars only hurts dollar-holders? Well, if you keep your money in some other form, the dilutional devaluation of the USD doesn’t really hurt you (it actually helps you, relatively speaking). So, if you hold a different currency, gold, silver, crypto, guns, ammo, real estate, vehicles, or other valuable things, you are protected from inflation. The majority of my net worth is not in USD, so inflation doesn’t hurt me that much. Considering that my debt is denominated in dollars, inflation effectively decreases my debt on a daily basis!
I have written other articles explaining the basics of moving your wealth into other forms of value preservation and money.
So, be skeptical of everything you hear, especially if it’s coming from politicians, bankers, or mainstream media. And turn as much of your USD into another form of value as soon as you can.
This article does not necessarily reflect the opinions of The Liberty Block or any of its members. We welcome all forms of serious feedback and debate.