While the official government statistics claim that inflation is under control, any consumer that has been to the grocery store or gas station lately may have a very different opinion.
As many people are learning, the only real protection from the eroding value of the dollar is to move away from reliance on the U.S. dollar and move into physical assets, like gold and silver. Because the dollar is a “fiat currency,” its value is not tied to anything other than the government’s insistence that it is what it is. For now, to the good fortune of the U.S., world banks across the globe have bought into the concept of using the U.S. dollar as the currency of choice for international trade, including sales of crude oil.
Since the value of the dollar has slipped recently, the price of oil has been moving up. The only constant in the equation is the price of gold, which tends to more closely mirror any changes in the price of oil.
In the “Reality Check” video clip on this page, a particularly well-informed news reporter explains the perils of fiat currency and how prices can keep going up, even if we’re being told that inflation is not rising.