INFLATION

Inflation for the 6 year fiscal period from Oct 1, 2019 to Sep 30 2025 is 41% or a compound annual rate of 5.89%. Inflation was much higher during 2020 and 2021 due to increased government spending during the covid period. Effectively the government stole from all of us (inflation) and gave to select groups (student debtors, unemployed, etc.). It takes a little while for the inflation to work its way through the system - things like stocks and bonds are repriced fairly quickly while it can take a couple of years for the inflation to show up in the price of eggs or that smaller bag of potato chips (family size, really?). But eventually everything costs about 41% more than it did in 2019 and the price will not, cannot come back down. Once congress spends it ...POOF... ITS GONE!!!

For the latest fiscal year of 2025, inflation was 4.555%

Inflation is caused by the federal government spending more money than it takes in through taxes and fees. Congress determines each year how much the government is going to spend. For the fiscal years 2020 thru 2025, it took in 31.948 Trillion Dollars and spent 43.457 Trillion Dollars, so congress spent 11.509 Trillion Dollars more than it took. For 2025, the shortfall was 1.624 Trillion.

Fortunately for us only about 60% of deficit spending tranlates to inflation, the other 40% will be collected later when all financial assets (cash and securities) are confiscated to pay that debt held at the Fed and other central banks - your financial "assets" are someone else's collateral (unless you own stock in paper certificate form).

Have you ever felt uneasy about depositing cash at (lending to) your bank and all you get back is a worthless little slip of paper with a thank you note at the bottom, but, when the bank loans you money you have to sign numerous documents promising to pay them back with interest and pledge everything you own as collateral?

Did you know that before 1913 when congress passed the federal reserve act creating their very own piggy bank that the US dollar was defined as 23.22 grains of pure gold, so 1 oz. of gold (480 grains) was equal to $20.67 by definition. To calculate how much value your congress and their bank (the Fed) has stolen from you over the past 112 years, just divide 20.67 by the current price of gold. So, like 20.67/4000 = 0.0051675... so the us dollar is worth just over 1/2 of 1% of what it was 112 years ago even though there are far more ounces of gold above ground than there were in 1913 and we have created a tremendous amount of economic value through our labor and ingenuity. If not for that confiscation and destruction of wealth, every american would be unimaginably wealthy.

Think of it this way, instead of an ounce of gold costing over $4,000, you should be able to buy an ounce of gold for something like $5.00. At that price, who would even want it? You would want to hold Dollars because they would be appreciating in value because of your and your fellow American's hard work and ingenuity. Everything should be costing you less each year, not more. That morning cup of joe shouldn't cost a nickel.

To calculate congress' approximate compound rate of inflation over the past 112 years just divide 4000 by 20.67, so 4000/20.67 = 193.5^1/112 = 1.048... so about 4.8% per year on average.

An interesting side note to ponder - In 2025, our government spent a little over 7.733 Trillion - to convert that to 1910 dollars, divide by 193.5, so 7733 Billion/193.5 = 40 Billion - that was more than the total US GDP of 35 Billion in 1910 - the US government only spent about 2% of its GDP ($694 million) in 1910. In 2025, our federal government spent 26% of GDP. Today's GDP is 29.724 Tillion, divide that by 193.5, so 29.724/193.5 = 153.6 Billion. So thru the efforts of Americans, our economy has grown by 153.6/35 = 4.39x. If congress had kept their spending under 5% of the economy's output, the economy would be much larger than it is today and the dollar would be worth multiples of what it was before 1913, so an ounce of gold would be worth maybe $1 or $2 and that cup of morning joe less than 1/2 cent (there used to be such a coin). Instead of the Philadelphia Mint ending the minting of the penny, they would be minting new coins in 1/8th and 1/4 cent denominations.