The largest price increases were on the following items.
- Ground coffee:Â 105.4%
- All-purpose flour:Â 52.8%
- Ground chuck:Â 52.8%
- White sugar:Â 50.8%
- Long-grain rice:Â 40.0%
The bottom line is price inflation is worse than they’re telling you. And they’re telling you it’s pretty bad.
There are all kinds of ways to slice and dice data. We can debate the minutiae, but the trend is undeniable. You’re losing purchasing power at a rapid rate. And no matter how much Fed Chairman Keven Warsh screams about tackling price inflation, nothing will change. They will continue to devalue the dollar as a matter of policy. That means you lose more of your purchasing power every day..
That’s the plan.
Therefore, you need to plan accordingly. If you’re trying to save and preserve your wealth in dollars, you’re making a huge mistake. You need to save in sound money – gold and silver”
The Dollar’s 75% Collapse Will Triple Gold Prices – Bloomberg. Legendary investor Rick Rule, former president and CEO of Sprott U.S. Holdings, warns the U.S. dollar will lose 75% of its purchasing power in 10 years. The Culprit: Massive National debt of $40 trillion combined with over $100 trillion in unfunded off-balance-sheet liabilities Social Security and Medicare.
To service nominal debts without an explicit, honest default, governments opt for “dishonest default” via inflation and currency debasement. Rule estimates a true compounded annual decline in purchasing power over 10% (significantly higher than official CPI metrics), meaning it could take around $4,000 in 2030’s to buy what $1,000 buys today.Â
Recommended Action- Hard Assets: Rule advocates holding tangible stores of value—such as physical gold, silver & tangible assets—to maintain real purchasing power, as the U.S. dollar’s biggest decline in purchasing power is just beginning.
Never forget, anything denominated in dollars (stocks, bonds, mutual funds, CD’s, annuities) lose purchasing power with each passing month…
“Dow Hits 50,000 While the Dollar Collapses. The Dow’s milestone is meaningless when measured in real terms. Priced in gold, the Dow has lost roughly 75% of its value since 1999. Inflation, not prosperity, is driving asset prices higher, caused by government spending and monetary expansion.” – Peter Schiff
Physical gold & silver represent a safer, sounder store of value than debt instruments denominated in fiat currency…
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. Gold is a currency. It is still, by all evidence, a premier currency, where no fiat currency, including the dollar, can match it.” – Federal Reserve Chairman, Alan Greenspan ( 1987-2006 )Unlike a currency, gold can’t be hyperinflated away. Unlike a bond it cannot default. And unlike a company (stock) it cannot go bankrupt. It’s value cannot be debased by governments, who print paper money at will, making their currencies worth less every year. |