3% Inflation Ain’t Good For Nothin’ Except An Excuse For More Money-Printing, Debt And Speculation

Just in case you are not counting, 3.0% annual inflation is no way to run a fair and prosperous economy. That’s because as inflation accumulates, purchasing power steadily falls, and, yes, the purchasing power of a dollar earned or saved 7 years ago is still damn relevant to almost everyone’s financial condition today. Yet here is the depreciation that occurs over 5, 12 and 25 year intervals when inflation is purportedly “well controlled” at 3.0% per annum.

Purchasing Power Decline of $1 dollar At 3% Inflation Over Indicated Intervals:

• 5 years: -14%.

• 12 year: -31%.

• 24 years: -54%.

Needless to say, the above is the track we are currently on according to this morning’s May CPI reading. As shown by our trusty trimmed mean CPI, the actual Y/Y rate remains plateaued at 3.0% and actually turned up slightly from 2.97% in April to 3.04% in May.