What does the government do when inflation becomes a nuisance? They manipulate the CPI equation to make the output look better…
Today’s CPI equation is seen as the red line in the chart above (showing the current 8.5% inflation metric). However, the CPI equation used in the 80’s is seen as the blue line in the chart above (showing the real rate of inflation is just over 17%).
In other words, inflation is now the highest it has ever been in the history of the Federal Reserve Note, higher than it was in the 40’s, 70s, and 80,s.
This is a national emergency…
We are watching, in real time, the planned destruction of dollar debt and the beginning of the removal of Treasury Bonds as the world’s reserve asset.
Hard to imagine the FED is fighting inflation considering the interest rate is 0.25% and needs to be > 8.5% (really 17%) to effectively fight inflation.
The dollars loss of reserve status will not be announced to the world until it is too late. It is happening gradually as market participants offload their dollar debts for better stores of value; thats why bond yields are rising (bonds are being sold).
As seen in Drew’s tweet below, by the time the majority of people understand what is happening it is too late to preserve purchasing power.
