Yet another great time to buy silver and gold

Because your cash will be worth 18% less in 10 years, and gold will be worth at least 18% more.

Nothing else can guarantee that rate of return.

For years, it was an unwritten rule. As of yesterday, it’s official policy: The dollars in your wallet are destined to lose at least 18% of their purchasing power during the next 10 years.

Lost in the noise of countless Federal Reserve announcements yesterday was a formal target of 2% annual inflation.

Actually, it’s worse than 18% over 10 years. For the Fed’s favored measure of inflation is not the heavily gamed consumer price index — CPI — or the even-more-gamed “core” CPI that assumes your cost of living isn’t really affected by food and energy.

After all, CPI is currently running 3.0% year over year. Whoops, too high. Core CPI is 2.2%. Still too high.

The Fed prefers something called “core personal consumption expenditures.”

That number is currently running 1.7%.

Voila! Applying the logic only central bankers are capable of divining, there’s not enough inflation!

via Government-Guaranteed Losses | 5 Min. Forecast.

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