The grim reality is that real inflation is 7+% per year.
This week, I've noted that Consumer Prices Have Soared 160% Since 2001 while under-the-radar declines in value, quantity and quality are forms of Inflation Hidden in Plain Sight.
What would happen if the real rate of inflation was revealed? The entire status quo would immediately implode.Consider the immediate consequences to Social Security, interest rates and the cost of refinancing government debt.
Unbiased private-sector efforts to calculate the real rate of inflation have yielded a rate of around 7% to 13% per year, depending on the locale--many multiples of the official rate of around 1% per year.
So what happens if the status quo accepted the reality of 7+% inflation? Here are a few of the consequences:
1. Social Security beneficiaries would demand annual increases of 7+% instead of zero or near-zero annual increases.The Social Security system, which is already distributing more benefit payments that it is receiving in payroll tax revenues, would immediately go deep in the red.
(Please don't claim the SSA Trust Fund will be solvent for decades. I've dismissed the fraud of the illusory Trust Fund many times. The reality is the federal government has to borrow every dollar of deficit spending by Social Security by selling more Treasury bonds, just as it borrows every other dollar of deficit spending.)
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2 comments:
The US Government is a criminal conspiracy against the People of America.
Every single market is rigged: Stocks, Bonds, Comex, Forex, Libor
Every single government report is rigged: Labor, Inflation, Housing
I have no solutions for the problems. They are probably too big. We have been checkmated by the elite bankers who own the commodities.
Is a tag team match from one president to the other! Full bore ever since Kenedy was knocked off. Then LBJ really kicked in the enslaving of America expanding welfare & FED. Nixon took us off the gold standard. Reagan ballooned the debt, daddy Bush started a war then took our money and made profit for his buddies, Clinton ran up the tab then stole Social Security, baby bush did a rerun to daddies ego, also added to the tab. Now today we have Obama Care! oh yeah!they got your number! you ready for it? I'd say we were sold out many decades ago.
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