Excuse me Mr. Powell? What was that about “we are running below 2% inflation” again? Seriously?
Looking at the above table, are you not amazed by the Federal Reserve’s repeated statements that our current inflation is below 2% level?
Someone has to bring the FED chairman Jerome Powell back to earth and take him to a corner grocery store. The simple truth is that the Fed keeps changing the metric in measuring inflation every decade or so, to conveniently fit their narrative. As I said before, it would be funny, if it wasn’t so tragic.
So what will your money be worth in the next 10 years? Based on historical facts and statistics, a lot less than it does today.
Just in the past 12 months, from March 2020 through April 2021, the value of the dollar on the index has dropped from 98.7 to 93.1. That’s an astonishing 9.7%, in just a single year. The question is are you brave enough to hold on to excess cash in your bank account as its value continues to erode year after year, while collecting dust instead of interest which has been set to near zero by the Federal Reserve to hide their dirty deeds in borrowing and spending at historic levels?
Here is another interesting fact. If you look at the table below, the average median income in US is currently at near $62,000 a year, which can buy 35 ounces of gold at its current price. In 2008, the median income could have purchased 64 ounces, and in 2000 when the annual median income was only $42,148, they could purchase 151 ounces.
This is interesting because in the past 20 years the annual income has gone up by just 47% while the price of gold has moved up over 520%, so back then your money could have purchased nearly 450% more gold than it does today. That’s how much your money has lost in value. WOW!
Why am I measuring your dollar’s buying power with the price of gold? That’s what moves the gold spot price, the value of your dollar. The inverse relationship between gold and the dollar determines the buying power of your money.
Folks, you have a choice to make: Sit on your excess cash and let it collect dust at near-zero interest rate while losing its value year after year, or protect it with gold and silver. Your decision will determine your buying power in the years to come as politicians fight over every pity thing in Washington while our national debt and deficit continue to soar. Remember over 26% of all dollars in existence, were printed just last year alone. With President Biden and liberals in charge of the house and senate, coming out with trillions of dollar spending Bill month in and month out, where do you think the value of your money will be in just 4 years from now?
You can sit back and do nothing or you can be proactive and protect your hard-earned money with time-tested hard currencies like gold and silver.
By Peter Ginelli