Dear Friends,
It seems to me, when inflation eats up our purchasing power… that’s paying the debt with inflation. The dollar has lost at least 50% of its value, (100% inflation), since Biden’s election cheated him into office. Even as the government claims inflation has been 20%. When I was in 5th grade, or maybe sooner, we learned about percentages. Apparently, the expert economists that calculate inflation missed those classes. Everything short of energy and housing has doubled… and those have “only” gone up 50%. If the price of a thing doubles, that’s 100% inflation, not 20%. Meanwhile SS has gone up around 18.5%. Which means 81.5% of the purchasing power of our future SS checks have been stolen by government inflation. In the last 4 years!!! That’s one way to solve the debt and SS problems.
Inflation simply means the eroding of the purchasing power of a currency. Milton Friedman came up with an elegant formula for predicting inflation. MV=PQ. M is the money supply, times V, or the velocity of money (how fast it changes hands), equals P, or price times Q, or the quantity of goods produced. In other words, if the money printed exactly equals the increase in real GDP, then there will be zero inflation. If the amount of money printed is 10% more than the quantity of goods produced, inflation will be 10%, and if money is printed 15% less than the growth in GDP, then there will be 15% deflation. By this model then, Biden’s administration, the democrats and republicans, have doubled the money supply, plus growth in GDP… by printing and spending. To get 100% inflation.
It’s not just retirees and future retirees that are being bilked out of money by voracious governments. Everyone who tries to save has been stolen from. Even high income dangerous investments only yield 20%. So, even if someone has invested in them, they have barely kept up with stated “inflation.” Let alone real inflation. If they haven’t lost it all. Which, over the long term in high income, is more likely then not. The rest of us have lost money based on purchasing power. Though retirees, future retirees and savers are patsies, if you work for a living, you’re a patsy too. Has your paycheck doubled? If it hasn’t, you took a pay cut. (In purchasing power). That boneless skinless chicken breast that used to be 1.99 a lb at Walmart… is now 3.99 a lb. The experts claim that’s 20%. What do you figure?
One of the reasons the US government had it in for Julian Assange… is that he exposed their lies. Wikileaks detailed how the government was and is changing economic numbers for political expedience. Nothing enrages a liar more than being exposed as a liar. It decimates the power of their lies. So the administrative state had a full on conniption fit. Imagine, letting us know that the government is stealing the purchasing power from our savings, Social Security checks and paychecks… at the rate of 25% a year! That’s a titanic amount of money. So… what are they spending it on? It looks to me like they’re spending it on cronyism, funding illegal immigration, and war. To be fair, some was used to fix infrastructure. Like… to build FEMA camps.
A wee bit came back to us under the Trump administration as “stimulus.” About a months worth of stolen money was returned to us. Of course, that was before the inflation, the rest went to enrich the Military industrial complex, politicians and NGOs. A river of money and thus power, is flowing from the hands of the populace, and into the hands of the elite. A torrent that makes Niagara falls look like a rivulet. Despite the astonishing amount of money taken indirectly from us by inflation, and directly by taxes… interest on the debt the elite have accumulated, enriching themselves and their friends, is now more than the defense budget… and growing fast. It’s like the elite are raiding the treasury as they ride the nation into the ground. Like a horse your riding to death. By draining us and the treasury.
Sincerely,
John Pepin
