Tag Archives: purchasing power

The Fantasy of “Balanced Returns” Funding Retirement

The fantasy that a “balanced portfolio” yielding “balanced returns” will fund a stable retirement for decades to come is widely accepted as a sure thing:inflation will stay near-zero essentially forever, assets such as stocks and bonds will continue yielding hefty … Continue reading

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We’ll Pay All Those Future Obligations by Impoverishing Everyone

I’ve been focusing on inflation, which is more properly understood as the loss of purchasing power of a currency, which when taken to extremes destroys the currency and the wealth/income of everyone forced to use that currency. The funny thing about the … Continue reading

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Here’s Why Rip-Roaring Inflation Is Inevitable

One of the enduring mysteries of the past decade is why inflation has remained tame while the central bank and government have pumped trillions of dollars of newly created money into the economy. Millions of words have been written about this, … Continue reading

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Burrito Index Update: Burrito Cost Triples, Official Inflation Up 43% from 2001

Long-time readers may recall the Burrito Index, my real-world measure of inflation. The Burrito Index: Consumer Prices Have Soared 160% Since 2001 (August 1, 2016). The Burrito Index tracks the cost of a regular burrito since 2001. Since we keep detailed records of expenses … Continue reading

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The Fallacy that Weakening Your Currency Generates Prosperity

Of the many economic policies that are accepted as true yet are absolute nonsense, perhaps none is more achingly nonsensical than the notion that weakening a nation’s currency will magically make that nation prosperous. Like the equally nonsensical Keynesian Cargo … Continue reading

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