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MAIN FEATURE
Everyone Is Wrong About CPI. And Everyone Who Thinks Everyone Is Wrong Is Wrong Too.
The government tells us inflation is running somewhere around 2% or 3%.
Most people in our world laugh at that number.
They look at groceries, insurance, housing, healthcare, and everything else they actually pay for and say, “There’s no way. Real inflation has to be closer to 10%.”
I understand that argument. I’ve made it myself.
But here’s where it gets interesting…
Treasury Secretary Scott Bessent and Fed Chair Kevin Warsh are working together to change the way inflation is thought about and calculated.
As soon as people hear that, they assume the worst.
“The government is changing the math so it can pretend inflation is lower.”
“They want an excuse to cut rates.”
“They’re cooking the books so they can print more money and blow the bubble even bigger.”
Maybe.
But what if everyone immediately jumping to that conclusion is also wrong?
THESE GUYS AREN’T ACADEMICS
For decades, our financial system has been run largely by theorists.
Janet Yellen was an academic. Jerome Powell was an attorney. They lived in a world of models where any price increase was inflation and the answer was always the same:
Make money more expensive and slow everything down.
Bessent and Warsh come from a completely different world.
They worked with Stanley Druckenmiller and George Soros, competing in global financial markets at the highest possible level.
Scott Bessent helped make a billion dollars in a single day, twice.
Once breaking the Bank of England and once trading against the yen.
If there’s anyone in the world who understands currencies, pegs, and how money moves through the global system, it’s Scott Bessent.
This guy is an assassin.
So before assuming he’s playing some cheap accounting trick, we should at least consider that he may understand something most people don’t.
NOT EVERY PRICE INCREASE IS THE SAME
Under the traditional Keynesian lens, any price acceleration gets called inflation.
But that lumps together things that have completely different causes.
Take oil.
If tankers can’t move through the Strait of Hormuz, oil prices go up.
But that’s a supply-chain shock. It’s a short-term problem that can be resolved through different shipping routes, changing demand, releasing reserves, or restoring the flow of oil.
Making money more expensive doesn’t move a single tanker.
Money supply cannot fix a supply-chain shock.
Or look at what’s happening with data centers.
We’re building AI infrastructure all over the country. That increases demand for electricians, engineers, construction workers, energy, and materials.
Labor prices go up because workers are being paid more to build productive infrastructure.
That’s awesome for workers.
Should we automatically call that inflation, raise rates, and cool the entire economy down?
Why would we make a long-term structural change to monetary policy because of a short-term bottleneck created by building something the country desperately needs?
That’s the distinction Bessent and Warsh appear to be making.
Some price increases come from monetary debasement.
Others come from temporary supply shocks, productive investment, rising wages, or an economy reorganizing itself around new technology.
Treating all of them exactly the same can create more damage than the original price increase.
NOW HERE’S THE SPOILER
Does this mean inflation is solved?
No.
Does it mean the government is suddenly going to protect the purchasing power of your dollars?
Of course not.
The United States still has roughly 120% debt to GDP. That debt is never going to be paid off because we live inside a debt-based monetary system. The debt is collateral for more debt.
The only realistic way out is to grow the economy while holding borrowing costs below the rate of inflation.
That’s financial repression.
We did it after World War II. We allowed inflation to push GDP higher while paying bondholders less than the inflation rate. The debt didn’t disappear. It simply became smaller relative to the economy.
That appears to be the plan again.
Reindustrialize.
Build manufacturing, energy, automation, and AI infrastructure.
Run the economy hot.
Keep policy accommodative.
Push liquidity into the system and attempt to grow faster than the debt.
So whether the CPI calculation is perfectly honest, slightly massaged, or completely fugazi, the conclusion for your money doesn’t really change.
They’re going to keep the liquidity flowing.
“THE GAME IS RIGGED” ISN’T A STRATEGY
A lot of people in our space default to believing everything is a conspiracy.
The numbers are fake.
The game is rigged.
The debt is impossible.
There’s nothing we can do.
The problem with that worldview isn’t simply that it might be wrong.
The problem is that it breeds inaction.
If the entire system is controlled by people conspiring against you, why bother trying?
Why invest?
Why build a business?
Why create a plan?
Why do anything besides complain and wait for it all to collapse?
I refuse to live that way.
Maybe Bessent is manipulating the numbers. Maybe he’s making an intelligent distinction between monetary inflation and temporary supply shocks.
Either way, my responsibility remains the same.
Understand the system.
Watch where the liquidity is moving.
Own assets that benefit from monetary expansion.
Protect my purchasing power.
Build a system that allows me to keep compounding through whatever comes next.
I can’t control how the government calculates CPI.
I can control what I own, how my assets are structured, and whether I’m positioned to benefit from the system instead of being crushed by it.
Those are the people I like working with.
Business owners, investors, creators, and builders who don’t waste their lives complaining that the game is rigged.
They learn the rules. They control what they can control. Then they use the system to create freedom for themselves and their families.
Next Thursday, I’m hosting a free live event where I’ll show you exactly how I’m doing that with my own wealth and how we help our clients do it too.
Save your spot here.
You don’t have to trust the CPI number.
You just need a plan that works regardless of what the number says.
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