Government officials and media pundits keep trying to tell you that inflation isn't really that bad. In fact, the economy is great! You just don't realize how good you have it! In this episode of the Money Metals' Midweek Memo, host Mike Maharrey takes on the myth that it's not that bad. In fact, he argues that it's probably worse than you think.
In this episode, he also overviews the most recent central bank gold buying data.
Mike opens the show with some reflections on last week's presidential debate.
"I came away with a question. There are over 333 million people in the United States, and this is the creme de la creme? Really? And yet people have divided up into very devoted camps around these two old men. We’d probably do well to heed the warnings about parties from some of the founding fathers. George Washington called a party-first mentality 'a frightful despotism.'"
Mike goes on to outline some of the founders' views on political factions. But he's not just talking politics for the sake of politics. He's driving at a broader point.
"Here’s the thing – I don’t think the problem is the people in charge of the system. The problem is the system itself."
Mike explains that the constitutional system has been flipped on its head, with the federal government wielding far too much power. To maintain that power, it borrows and spends.
"Just look at the trajectory of the national debt and the ever-increasing borrowing and spending. The trajectory is the same no matter who is in the White House. What I’m driving at here is I don’t think there are a lot of political solutions. I’m not saying disengage. Pick whoever you think is the least bad. But you also need to get your own house in order. Do what you can to minimize the impact of government on your lives. For instance, the inflation tax isn’t going away, no matter who wins the election. So, you need to have an inflation hedge to protect your wealth against its effects. As I talked about a couple of shows back – gold and silver have proven to be hedges during this recent surge of price inflation."
But the powers that bar are gaslighting us. They're telling us things aren't that bad. Mike points out that people like Paul Krugman and Janet Yellen keep saying people who complain about the economy really don't understand how good they have it.
"All these people are lying. It is as bad as you think. The fact is, it’s probably worse than you even realize."
Mike highlights a recent TikTok video that reveals the true impact of price inflation. A basket of goods the TiKToker bought at Walmart in 2022 cost nearly four times more in 2024.
"How in the world did prices go up that much when the official CPI is only running 3.3 percent? Heck, even at its peak in June 2022, CPI was just a little over 9.1 percent. If you think the government numbers might be understating the problem, you’re right."
Mike goes on to highlight how the CPI is calculated and changes made over the years that make it understate the true extent of price inflation.
"The government CPI formula was sketchy, to begin with, and then the government revised the formula in the 1990s so that it understates the actual rise in prices even more than it used to.
"The bottom line is we should never trust the government’s bottom line."
Mike points out another problem when it comes to the inflation issue - definitions are confused.
"Simply put, central bank money creation is inflation. One of the symptoms of this monetary inflation is rising consumer prices. When you understand the real cause of price inflation, everything makes sense."
Mike provides some figures showing just how much inflation the government has created since 2008.
"With all of that new money sloshing around chasing the same amount of goods and services, prices were bound to rise. Of course, government people never want to look in the mirror. They want you to think they’re saving you, not making your life crap. That's something to keep in mind the next time some pundit or politician tells you that your economic troubles are all in your head. You also may want to think about preserving your wealth with an inflation hedge. Gold and silver are ideal in that capacity!"
To wrap up the show, Mike covers the latest central bank gold buying data.
Short version: they bought more gold. But the pace slowed moderately with China at least temporarily out of the picture.
Mike highlights some of the reasons central banks are buying gold and concludes that they apply equally well to individuals and he ends the show with a call to action - get some gold and silver!
Articles Mentioned in the Show
Is China Hiding How Much Gold It Really Has?
Central Banks' Appetite For Gold Hasn't Been Satisfied
Gold as an Inflation Hedge in the 21st Century
About the Author:
Mike Maharrey is a journalist and market analyst for MoneyMetals.com with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
