Chris and Paul discuss inflation as a government policy issue, and its impact on purchasing power and retirement.
by Dr. Chris Martenson
Chris Martenson’s Peak Prosperity
For the past 17 years, I’ve been running all over the place educating and warning everyone I could about inflation. Inflation is 100% the product of official policy. Heck, the Fed even has a minimum target for inflation, although they’ve never explained to anyone why they have any target at all let alone the specific rate of 2%.
Over the past 5 years, cumulative inflation is an eye-watering (because we’re all crying) 26.4%, which means if you were earning $100k in 2020 and are still earning $100k, you’ve experienced a $26,400 pay cut. Looked at another way, your taxes went by $26,400 because inflation is, indeed a tax. It operates exactly and precisely the same way as a tax.
In a proper tax regime, the government tells you how much it’s going to take, it takes it, and then spends it. In the illegitimate, and thoroughly immoral inflation-as-a-tacx regime, the government spends the money first, and then you pay for it with your money losing value.