Friday, October 25, 2019

Here's how you calculate inflation

1) Go the the federal reserve FRED site and look up M2 Money stock.




2) Plug the starting value of 1800 and the ending value of 15033 into Investopedia's Compound Annual Growth Rate (CAGR) Calculator.  It has been 39 years since M2 was 1800 billion (1.8 trillion) The answer comes out to 5.6%.  Note: back in 1980 1.8 trillion was all of the M2.  Now 1.8trillion is just the annual addition to it.




3) Compare with Amazon purchases you have made in the past:



OK so it has clearly been established that the rate of money debasement has been about 5.6% per annum.  So what does that really mean?  First off, unless you get a 5.6% pay raise each year you are getting a 5.6% yearly cut in purchasing power.  It takes 5.6% each year every year just to stay even with the corrupt rate of debasement of the money supply.

Who gets that???  Very few IMO.  Second, what does it mean going forward?  Well, compounding anything (i.e. each year you get X percent more than last year) is an exponential function.  Unless something changes, M2 will be 24 trillion just 10 years from now and 42 trillion 20 years from now.  Anyone who does not have favor with the con men enough to keep their salary growing will eventually starved out of the picture.  This is why we the people must at some point stand up in unison to regain control of the money supply.  It is the pot that boils working people in the stew of their own lives.  It is absolutely and in insolubly corrupt.  It is beyond fixing because you can't fix something that is intrinsically corrupt; you cannot "fix" The Devil.  You cannot "fix" Mammon Money.

As global problems continue to escalate from here, forget all the noise about this or that.  Much of what is happening right now was clearly predicted in these pages years ago, and the chart below is why I knew it would be the case.  If someone goes on to explain some symptom of this as if it is the root cause, do your part to educate them because they are caught up in the trees and do not see the Forrest.



No comments:

Twitter Delicious Facebook Digg Stumbleupon Favorites More