It’s not a surprise to Republic Monetary Exchange friends and clients!
The inflation rate keeps powering higher and higher.
Consumer prices have climbed 7.5 percent over the last 12 months, according to the Bureau of Labor Statistics. That is the most in 40 years.
Inflation ran even hotter than that in the mountain states, including Arizona where Republic Monetary Exchange is headquartered and where many of our clients live. Mountain states inflation came in at 9 percent.
Let us backtrack a bit. A year ago, the Federal Reserve showed no concern at all about inflation, while we warned there would be severe price consequences to the Fed’s money printing spree. When inflation’s presence became undeniable, the Fed insisted it would be transitory.
It has not been transitory. Instead, it has kept climbing into the banana republic danger zone.
At the end of October, the annual inflation rate was 6.2 percent.
By the end of November, we were looking at annual inflation of 6.8 percent.
And it just kept climbing.
At the end of last year, 12-month inflation has risen to 7 percent.
Now, with the numbers in for January, the 12-month inflation rate has climbed to 7.5 percent.
What this means it that since January 1, 2000, the US dollar has lost 40 percent of its purchasing power. Gold, on the other hand, began the new millennium at about $280. It has gained some 550 percent while the dollar lost 40 percent of its purchasing power. That is the sort of thing to be expected with the Fed printing dollar by the trillions.
You did not need to hear a government report to know that inflation is running red hot. It is the talk of people everywhere we go these days. The official numbers are notoriously sketchy, and we believe they understate real inflation. We cannot say what the official numbers will be next month. They can come in higher or lower at any time.
But we can tell you that the purchasing power of the dollar will be even lower next month than it is right now.
And that is why you need to protect yourself from the destruction of the US dollar by owning gold and silver. Speak with a Republic Monetary Exchange professional today to create a plan to protect your wealth and your family.