Federal Money Policy Deflates Your Savings 9% Per Year !

The Government’s Most Insidious Thief is Not Taxes;  It’s Inflation

In the field of data analysis, it is critical to “back test” your estimates to make sure they played out accurately.   Let’s back test the FED inflation number for 16 years to see how much error they exhibited.

When I ran the numbers in Excel, I found the modern inflation number is 1.51 since year 2000, but the original, and probably the most honest according to Campbell’s law, is 3.84.  So all your returns in your investments since year 2000 shrank by  1./3.84=74% over what you have now.   That’s 8.8 percent a year over the years 2000-2016.

This inflation is due to all unbacked credit issued by the federal government:  Tax cuts implemented without spending cuts, benefits like social security which are not balanced by commensurate taxes, monetary policy like QE, and fractional reserve money now effectively printed by the…



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