One of the biggest things that I've realized over the last few months is that the inflation rate that is presented to us is an incomplete picture. CPI is only a list of very specific products and services that the government finds easy to watch so they can tell us how fast prices are going up. But it's a very small list, and it gives no REASON why the prices go up, only that they are. So when I found Bitcoin, and really started studying it, I realized what I had been missing.
The US Federal Deficit in 2023 was 1.7 Trillion.
The US GDP in 2023 was 27.3 Trillion.
The Deficit to GDP Ratio in 2023 was 6.22. This means that the deficit was 6.22% of GDP. Our government created that amount of money through the sale of bonds issued to pension funds, mutual funds, retail portfolios, institutional portfolios, exchange traded funds, Japan, China, the UK, Luxembourg, Canada, etc. It increased the supply of US Dollars in the world, thus reducing the purchasing power of each and every dollar denominated Bond, Bill, and Note by that 1.7 Trillion. And this happens each and every year, some years worse than others.
The US National Debt in December 2023 was 33.1 Trillion. So the deficit to debt ratio is 5.13%. If the US National Debt is considered the total sum of all "money" in the market, then the real inflation rate in 2023 was 5.13%. Each and Every Year.
We can't talk about what we want to do with money until we get a handle on our money. Because everything that we do that costs more than we bring in is devaluating the money that all of us use each and every day. Any raise in wages less than 5.13% in 2023 did not keep up with the loss of purchasing power. Prices are increasing faster than our wages have been growing since 1971, and THIS IS WHY.
Unless and until we balance the budget, stop issuing new debt, pay OFF the national debt and start building a collection of assets at the US Federal government level that generate the wealth necessary to pay our government expenses without taxes, this will continue to get worse and worse and worse.
We could start to fix this today. Congress won't even have this conversation. The Banks will destroy any high level political leader who moves in this direction. Why? Because shifting from debt to wealth DESTROYS THE BANKS. It makes them unnecessary, something for the history books. The entire financial sector disappears, because all of those credit card fees, bank fees, financial investment fees, they ALL GO AWAY.
