Perhaps the stealthiest tax is inflation. In its simplest form, the government prints money and uses the newly printed currency to fund government spending. The government’s money looks like everyone else’s, so no one feels like they have been taxed. But adding to the money supply debases the value of everyone’s currency.

On Tuesday, December 13, 2022, David John Marotta appeared on Radio 1070 WINA’s Schilling Show with Rob Schilling to talk about the causes of inflation.

Here is an outline of the discussion:

[0:00] The definition of inflation

[1:17] Is inflation the cause of the Federal Reserve or congress?

[3:21] The government benefits from inflation. How?

[5:52] The CPI Index has been under reporting inflation by about 1.23%.

[9:33] Inflation helps the national debt. As investors we should not be invested in cash.

[12:17] Expected inflation according to the market is just 2.36%.

[14:13] Why isn’t the price of gold higher?

[15:46] How can we protect ourselves against inflation?

You can listen to the audio here:

Related Links & Notes

• Your Social Security Benefit Lags Inflation
• Big Mac Index Shows Official CPI Under Reports Inflation (2022)
• Lessons for 2022 from My 1983 First Mortgage at 11.5%
• One Method To Estimate Future Inflation Expectations (currently 3.71% vs. 1.35%) or 2.36% expected annual inflation over the next 5 years.
• Current Inflation vs. Expected Inflation (June 2022)
• Pension Lump Sums Are Affected By Rising Interest Rates
• Nontaxable Social Security Thresholds Are Not Inflation-Adjusted
• More articles on Inflation.

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