“Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper-money.”
– Daniel Webster, 1832
Crushing the Middle Class
What if the savings in your bank account lost 50 percent of its value over the next 12 months? Would you be a tad irate? Would you wish you’d transferred some of those savings into gold today when it was merely $4,200 per ounce?
It’s unlikely the U.S. dollar will lose 50 percent of its value over the next 12-months. But, based on the Bureau of Labor Statistics’ own inflation calculator, the dollar has lost 50 percent of its value since the turn of the century. In other words, per official inflation statistics, it takes a dollar today to buy what $0.50 could buy on January 1, 2000.
Of course, we all know the BLS inflation numbers are grossly understated. When it comes to housing, it takes a dollar in 2026 to buy what $0.33 did in 2000. With respect to gold, a dollar today gets you what just $0.07 did in 2000.
Still, an official 50 percent devaluation over 26 years has turned saving, investing, and planning for the future into a cruel, unwinnable game. Unless you’re already wealthy, with a diverse pool of assets – stocks, bonds, gold, properties, farmland, all spread across several continents – you likely find yourself with nothing to show for your years of labor. And your kids, seeing this losing plight, may have taken to sports betting or speculating on cryptocurrencies with the hopes that, just maybe, with a little luck, they’ll get ahead. Continue reading







