Dollar Collapse: đź’µ Inflation Destroyed 87% of Purchasing Power Since 1971 – Making Gold & Silver Critical Wealth Protectors

October 2026

“We all intuitively know that prices are rising faster than the Consumer Price Index (CPI) indicates. We feel the pain every time we go to the grocery store or gas station. But just how much is price inflation impacting us here on Main Street?

According to the latest CPI data, price inflation ran at 3.5% over the last year. That’s well above the mythical 2% target.

This paints a pretty bleak inflation picture, but the situation is worse than these dreary government numbers suggest.

How can this be?

Because the CPI formula is constructed to understate price inflation.

In fact, the government revised the CPI formula in the 1990’s so that it understated the actual rise in prices even more.

ShadowStats estimates what U.S. inflation would look like if the government had not changed how it calculates the Consumer Price Index (CPI) since 1980 or 1990.
Run by statistician John Williams, Shadow Government Statistics publishes alternative economic data. It shows that changes made by the Bureau of Labor Statistics (BLS) over the decades—such as substitution (swapping expensive items for cheaper ones), quality adjustments (hedonics), and weight changes—intentionally lower the official inflation rate…

Starting in 1980, there have been about 20 changes” to the way CPI is calculated, said Mr. Williams. “Every change has lowered the CPI compared to how it would have been calculated before.”

By substituting items in the basket they used that had gotten too expensive and replacing them with something cheaper, thus keeping inflation from rising. The BLS wants you to believe that inflation is getting better.

As you might recall if you were around then, inflation felt out of control in late 1979 and early 1980. The peak was a staggering 14.6% in March 1980.

Key point: Inflation rates that high threatened to destroy the Social Security program in short order: No way could it keep up with cost-of-living adjustments that steep. And so began that process of 20 changes in the way the official inflation rate is calculated, every one of them bringing the number down.”

The BLS says inflation is 3.4%, but calculating them the way they were calculated in 1980 before the hedonic adjustments, Shadowstats shows inflation is actually  triple the ‘official’ CPI – now at 11.4% 

The Bureau of Labor Statistics also collects and aggregates data on actual price increases. Using these numbers without all the formulaic manipulation and hedonic adjustments built into the process gives us a better sense of how much more we’re paying at the store.I had an AI agent take 25 common items from the BLS data and calculate the price increase for that basket of goods over the last five years.

Based on this basket, price inflation is running at 29.3 percent.

The largest price increases were on the following items.

  • Ground coffee: 105.4%
  • All-purpose flour: 52.8%
  • Ground chuck: 52.8%
  • White sugar: 50.8%
  • Long-grain rice: 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. 

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.

💵 Since 1971, the year the United States severed the dollar’s link to gold, it has lost 87.5% of its purchasing power and is now worth 12.5¢. Over the same period, gold has increased 120 times in value.

In fact, gold has maintained it’s value over time, better than any asset on earth. Preserving savings during economic crisis and market corrections. And growing wealth by outperforming stocks, bonds, real estate and every other investment asset.

That Makes Gold the Best Place to Store Your Wealth. 

As inflation makes our dollars worth less every day, more Americans are protecting their savings with physical gold & silver. A money that has no default risk and cannot be inflated away.

Financial planners & economists have reccomended that investors assets be properly allocated to physical gold & silver as portfolio insurance and protection against financial calamity.

Wall Street has long advised 60% of investor assets be allocated to equities and 40% in fixed-income investments, primarily bonds. But in a historic shift in asset allocation, Morgan Stanley & Bank of America now advise swapping half of the bond portfolio for gold to serve as a “more resilient” inflation hedge.

💰 Current  Reccomended  Gold  Allocation: J.P. Morgan 20% – Bank of America  40% – #1 Aden Forecast  Advisory 70% 

Most Americans have life insurance, health insurance and homeowners insurance. Yet, only a fraction of the U.S. population holds precious metals as tangible financial insurance. In fact, less than 10% have critical physical gold or silver to protect retirement-savings against financial  calamity:

” I remain steadfast in my conviction that there is no better investment I would rather own in these times — not cash, which is constantly being inflated away, nor stocks or real estate, which are in massive and unsustainable bubbles, nor cryptocurrencies, which are fundamentally flimsy and plagued by numerous flaws, and certainly not bonds, where you are lending to heavily indebted governments and corporations. For me, precious metals are a TINA situation: There Is No Alternative” 🏆 Bubble  Report 

Overvalued equity markets and a monetary system overcome by debt is not a safe place to protect & grow retirement savings.

$40 Trillion Reasons to Buy Gold Now

Since 2009 our national debt has exploded from $8 to $40 trillion dollars, hyper-inflating the stock, bond and real estate markets…And created the largest financial bubble in U.S. history. FED induced asset bubbles never last, they have all crashed, every single one.

In 2026, the stock, bond & real estate bubbles may get cut in half.(crash) While money in the bank becomes worth less every day. (infation) But gold will continue to protect & grow wealth as it has for thousands of years.

Having a minimum of 20% of assets allocated to physical gold & silver  provide critical financial insurance & protection against: Asset bubbles, stock market declines, global unrest & currency devaluation (inflation)

Repositioning risk assets & rapidly depreciating fiat currency into gold now, could be the Best financial decision you ever make.

🏆 Liberty Financial’s Guaranteed Gold Account is the #1 performing investment the last 25 years.

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Don’t wait, call today (800) 723-8349. Or link below

https://www.libertyfinancial.org/72-certified-gold-account/

🗽 Trusted Advice Since 1982