The Federal Reserve has pushed interest rates to over 5%. At the most recent FOMC meeting, it indicated that it may have to hold rates higher for longer. But the mainstream remains unconcerned. The narrative is that the Fed has successfully raised rates to fight inflation and is now guiding the economy to a “soft landing.”
In a nutshell, the mainstream financial media seems convinced the US economy has dodged a recession. Meanwhile, the average American seems less than convinced.
So, who’s right?
Last month, the BRICS economic bloc extended invitations to six new members, including Saudi Arabia. What are the ramifications of this expansion? That remains to be seen.
But as Ron Paul pointed out, it could further erode the West’s economic power, and ultimately threaten the status of the dollar as the exclusive global reserve currency.
Gold is nature’s money.
Aristotle listed four characteristics of sound money: it must be durable, portable, divisible, and have intrinsic value. Gold possesses all of these characteristics, which is why gold has served as money for thousands of years.
At its recent summit, the BRICS economic bloc announced it will add six new members, including Saudi Arabia. Many people believe the growing influence of BRICS could ultimately dent Western economic power and undermine the dollar’s role as the world’s reserve currency.
Many people frame the rise of BRICS as a battle between East and West, but economist Patrick Barron said it’s more fundamental than that. It’s actually a war between diametrically opposed economic ideas.
The national debt has climbed to a staggering $32.7 trillion. In just the first two months after Congress reached a deal and suspended the debt ceiling for two years, the national debt surged by $1.2 trillion.
And there is no end in sight.
Dishonest money is destroying our standard of living.
What do I mean by “dishonest” money?
I mean government fiat money that it can create out of thin air. This is inflation and it constantly eats away our purchasing power.
The Federal Reserve advertises itself as “independent” and above the political fray.
The Fed is inherently political and makes decisions based on political calculations as much as economic data.
The Consumer Price Index (CPI) cooled in June. Year on year, the CPI increased by 3%. That was trumpeted as great news with some pundits suggesting perhaps 3% is low enough.
It’s not.
People are confused about the definition of inflation. And because they don’t really know what inflation is, they can’t grasp what’s causing it.
Or how to fix it.
That’s why it’s imperative that we reclaim the meaning of inflation.
The US dollar is on shaky ground. There is a growing trend toward de-dollarization. Meanwhile, the Federal Reserve is tinkering with the idea of a digital dollar that could give the government unprecedented control over your spending.
Given the trajectory of the dollar, it might be a good idea to find some alternatives. In other words, we need currency competition.
