It’s this simple - print money and erode the purchasing power of the dollar. A dollar doesn’t buy you anything anymore and it is a direct result of the increased money supply. I know I sound like a broken record but I am trying to hammer this point home and emphasize why scarcity in money is so important! The Federal Reserve is an unelected governing body that gets to control our money supply and they keep changing their narrative showing us just how inept they are. They have proven to us that they have no clue what is going to happen. The problem is inflation and the main way they fight inflation is by raising interest rates. Let’s look at what they’ve said about interest rates, note the dates.
So I told you the main way the fed fights inflation is through raising interest rates, it makes borrowing of money harder and in theory slows growth. The last thing I want to do is confuse anyone with charts but take a look below. Red line is CPI (inflation) and blue line is the federal funds rate (interest rate). They tend to mimic each other as the fed responds to the inflation. Looking at 2022 we see inflation surging (red line) but can you even see the blue line? No, because it is at 0%! The last time we had inflation this high was 40 years ago in 1982! Note the difference though.. they had interest rates of 14%. Why does this matter….. THE DEBT!
Let’s take a closer look at the interest rates.
Note the trend, lower and lower. This is because the debt is higher and higher. As debt continues to grow it becomes impossible to raise interest rates. BUT THEY NEED TO TO FIGHT INFLATION! Looking below, the chart shows Federal Debt. They make it confusing by charting it in millions but the debt is at $28.4 TRILLION, this chart updates quarterly and is now over $30 TRILLION!!!
We’ve become numb to how much $1,000,000,000,000 (TRILLION) truly is. Let’s put it in perspective.
Conclusion
We have record inflation. Interest rates are at 0%, historic lows. Debt is at all time highs.
In order to fight the inflation, rates need to rise. If rates rise, debt implodes. This will cause the markets to crash and the fed will come in to save it with even more printing! This will lead to even higher prices and a viscous inflationary spiral. They will say whatever they have to, so don’t be fooled by the talking heads. THIS SYSTEM IS UNSUSTAINABLE and we’re reaching the END GAME.
The politician that says they will give us more money or tax the wealthy will be the ones that get elected. More money sounds great but will only make the problem worse. This is a systemic issue and is passed the point of fixing. We need a new monetary standard and this is where we usher in Bitcoin.
Bitcoin is an insurance policy on financial catastrophe and the higher the price the more expensive that insurance policy is. The point of insurance is to buy it before you need it. Don’t buy fire insurance once the house is on fire.
The Fed telling us inflation is 7.5% is an absolute slap in the face! This is a government statistic and is highly manipulated. In the 1980s the Fed changed how they measure inflation, take a look.