WEBVTT - The Mark Moss Show 2-19-24 0:00:00.560 --> 0:00:03.880 Shrinkflation. Have you heard of it? Apparently it's such a 0:00:03.880 --> 0:00:06.120 big deal that we have the President of the United States, 0:00:06.160 --> 0:00:09.680 President Biden, going on national TV right before the Super 0:00:09.680 --> 0:00:13.880 Bowl to talk to the American people directly about shrinkflation. Now, 0:00:13.960 --> 0:00:18.000 shrinkflation is like a play on words of something called inflation. 0:00:18.480 --> 0:00:21.920 We have another word called stagflation. And when you add 0:00:22.000 --> 0:00:25.840 all of these things up, it's bad. But the government 0:00:25.840 --> 0:00:27.840 doesn't want you to believe that, and that is why 0:00:27.880 --> 0:00:31.360 they are going on a massive gas lighting campaign, from 0:00:31.400 --> 0:00:35.600 Biden on TV to Janet Yellen on CBS and so 0:00:35.680 --> 0:00:38.040 much more. So. In today's episode, we're going to talk 0:00:38.080 --> 0:00:41.160 about what is going on. Why is the Biden administration 0:00:41.240 --> 0:00:43.760 going on a full court press gas lighting us about 0:00:43.760 --> 0:00:46.360 the truth. We're going to dig through some economic data 0:00:46.400 --> 0:00:49.120 so you can see how price levels have changed throughout history. 0:00:49.320 --> 0:00:52.840 We're going to take a look at what Janet Yellen said, 0:00:53.120 --> 0:00:55.240 and we're going to break this down step by step. 0:00:55.240 --> 0:00:57.319 We're going to put actual data behind it to see 0:00:57.360 --> 0:00:59.680 where we're really at. We're going to pull back the 0:01:00.360 --> 0:01:02.240 of some things that she said so you can understand 0:01:02.240 --> 0:01:05.319 what she's really really saying. We're going to talk about 0:01:05.360 --> 0:01:08.360 the actual data of our Americans better off or not, 0:01:09.080 --> 0:01:11.320 what you could be doing about this to protect yourself 0:01:11.400 --> 0:01:13.800 and so much more so, let's just go ahead and 0:01:13.840 --> 0:01:15.640 dive in. If you're just tuning in, you're listening to 0:01:15.720 --> 0:01:17.960 the Mark Mos Show. We're talking about the way the 0:01:18.000 --> 0:01:19.720 world changes as we look at it through the lens 0:01:19.800 --> 0:01:24.720 of politics, finance, and technology. Today we're mostly talking about 0:01:24.720 --> 0:01:27.760 finance and how the world is changing. But unfortunately it's 0:01:27.800 --> 0:01:32.559 become political now. I say unfortunately because what the Paul Krugman's, 0:01:32.600 --> 0:01:35.880 the economists of the government have to say, and what 0:01:36.240 --> 0:01:39.560 many economists of the central bankers have to say, is 0:01:39.560 --> 0:01:42.280 that we can only trust the money that's given to 0:01:42.360 --> 0:01:45.000 us by a government, and we can only trust money 0:01:45.040 --> 0:01:48.800 that's given us to us by a central bank. However, 0:01:49.520 --> 0:01:52.240 that makes it political then because the government and then 0:01:52.280 --> 0:01:55.000 which government, and which ruling party and all these things. Right, 0:01:55.280 --> 0:01:58.800 Money is neutral, Money should not be political. Money is 0:01:58.840 --> 0:02:02.880 just money. Money is medium of exchange. Now, I didn't 0:02:02.880 --> 0:02:04.440 want to go down this path, but just real quickly, 0:02:04.480 --> 0:02:07.480 if you think about money, as my friend Robert B. 0:02:07.480 --> 0:02:10.800 Breedlove says, will be the defining question of our generation. 0:02:11.160 --> 0:02:13.280 But what is money? And money is a lot of things, 0:02:13.280 --> 0:02:17.480 but ultimately, it stores my value, it stores my energy, 0:02:17.520 --> 0:02:20.920 it stores my wealth until I'm ready to exchange it 0:02:20.960 --> 0:02:23.079 for goods and services that I want, and so then 0:02:23.080 --> 0:02:25.200 it becomes a medium of exchange. So I can use 0:02:25.240 --> 0:02:27.240 it as a store of value, and then I can 0:02:27.360 --> 0:02:29.800 use it as a medium of exchange. And so neither 0:02:29.800 --> 0:02:32.280 of those things should be political. The only reason it's 0:02:32.320 --> 0:02:35.720 political is because they want to impact. They want to affect, 0:02:35.760 --> 0:02:39.520 they want to change the amount of money so that 0:02:39.560 --> 0:02:45.000 then they can drive certain political ideologies and things like that. 0:02:45.200 --> 0:02:47.200 So let's break this down a little bit. So let's 0:02:47.240 --> 0:02:50.640 talk about for a second. First, let's talk about let's 0:02:50.639 --> 0:02:52.200 just start right at the top, and let's play this 0:02:52.240 --> 0:02:56.080 little clip of a video of Biden the Super Bowl Sunday. 0:02:56.600 --> 0:02:58.920 Is there anything like me you'd like to be surrounded 0:02:58.919 --> 0:03:01.240 by a snack or two while watching the big game? 0:03:01.720 --> 0:03:04.000 You know, when buying snacks for the game, you might 0:03:04.040 --> 0:03:07.400 have noticed one thing. Sports drinks bottles are smaller. A 0:03:07.480 --> 0:03:10.040 bag of chips is few of chips. They're still charging 0:03:10.080 --> 0:03:12.359 it chest as much. And as an ice cream lover, 0:03:12.440 --> 0:03:14.440 what makes me the most angry is the ice cream 0:03:14.480 --> 0:03:18.720 carts have actually shrunk inside, not on price. I've had 0:03:18.840 --> 0:03:20.639 enough of what they call shrinkflation. 0:03:21.760 --> 0:03:24.560 So he is mad because he doesn't get as much 0:03:24.600 --> 0:03:27.799 ice cream. The memes of Biden are just legendary of him, 0:03:27.800 --> 0:03:29.800 like licking his ice cream cone as the world is 0:03:29.800 --> 0:03:32.360 burning down around him. But he's mad because the amount 0:03:32.360 --> 0:03:34.639 of ice cream that he gets in his cart isn't 0:03:34.680 --> 0:03:36.640 as much as it used to be, and he calls 0:03:36.680 --> 0:03:40.440 it shrinkflation. So inflation is well, we're going to break 0:03:40.440 --> 0:03:42.560 down what inflation really is, but per the sort of 0:03:42.840 --> 0:03:45.520 used term today, which they've changed so they can defeat 0:03:45.560 --> 0:03:48.119 this argument. We'll come back to that. But inflation being 0:03:48.160 --> 0:03:50.840 price is going up, and when prices are going up, 0:03:50.960 --> 0:03:54.160 your money doesn't buy you as much goods and services. 0:03:54.160 --> 0:03:56.520 Back to money being in medi of exchange. Now, what 0:03:56.600 --> 0:03:59.800 he's called shrinkflation is that the price didn't actually go up, 0:04:00.080 --> 0:04:03.160 but the amount of goods and services went down. It's 0:04:03.160 --> 0:04:05.320 the same thing. So instead of prices going up, the 0:04:05.320 --> 0:04:07.440 price to day the same, except you just get less stuff. 0:04:08.160 --> 0:04:10.800 It's the same thing. He's calling something different but he's 0:04:10.840 --> 0:04:13.160 complaining about is ice cream. But the reality is here, 0:04:13.560 --> 0:04:16.480 what he's really trying to do is divide the people. 0:04:16.760 --> 0:04:20.360 What he's really trying to do is angle for more 0:04:20.480 --> 0:04:24.440 government oversight, and he's trying to blame the greedy capitalist 0:04:24.839 --> 0:04:27.279 for doing this. He's angry about it. He wants to 0:04:27.320 --> 0:04:29.120 do something about it. He wants to get to the 0:04:29.160 --> 0:04:32.239 bottom of why these companies are giving you less chips 0:04:32.240 --> 0:04:34.280 in your bag or less ice cream in your cart. 0:04:34.279 --> 0:04:37.200 And as he talks about, but that is completely false. 0:04:37.240 --> 0:04:38.560 And I'm just going to break this down for a minute. 0:04:38.600 --> 0:04:40.600 We're going to come back to this towards the end, 0:04:40.640 --> 0:04:42.600 but let's just think about this for a minute. If, 0:04:43.200 --> 0:04:45.760 as he says ice cream, if ice cream maker number 0:04:45.760 --> 0:04:48.919 one charges five dollars for one court of ice cream, 0:04:49.320 --> 0:04:52.440 and ice cream Maker two sells the same court of 0:04:52.480 --> 0:04:56.400 ice cream for six dollars, I, as a consumer, get 0:04:56.400 --> 0:04:59.560 to choose which one I want. Now. Likewise, let's say 0:04:59.560 --> 0:05:01.920 they're both dollars, but one is a court and one 0:05:02.000 --> 0:05:04.119 is a quarter of a court or half of a court, 0:05:04.320 --> 0:05:07.360 then I can still make my choice. What he's saying, though, 0:05:07.400 --> 0:05:10.560 is that people are tricking us and they're selling us 0:05:10.640 --> 0:05:14.240 less one. I would say that he thinks too low 0:05:14.360 --> 0:05:16.400 of the American people, Like, come on, are we really 0:05:16.400 --> 0:05:18.880 that ignorant. Do we really not notice that there's less 0:05:18.960 --> 0:05:21.760 actual food in there to feed our families or feed ourselves. 0:05:21.800 --> 0:05:24.040 Of course we don't. But the reality is what I 0:05:24.120 --> 0:05:26.799 want to point to is it's not about a greedy business. 0:05:27.080 --> 0:05:29.640 It's about the necessity of these businesses in order to 0:05:29.640 --> 0:05:32.280 stay profitable. You see, a business has to make profit 0:05:32.360 --> 0:05:34.680 if they want to pay for their products, if they 0:05:34.720 --> 0:05:37.680 want to pay their employees and so forth. And the 0:05:39.040 --> 0:05:40.919 all of this rhetoric that you hear from the government 0:05:40.960 --> 0:05:45.200 talking about these greedy corporations overcharge and hear from Elizabeth 0:05:45.240 --> 0:05:49.320 Warren as well. We heard it from well, I think 0:05:49.360 --> 0:05:51.880 it was Elizabeth Warren. She last year Thanksgiving talking about 0:05:51.920 --> 0:05:55.160 these greedy turkey companies overcharging you, gouging you on turkeys. 0:05:55.360 --> 0:05:57.599 But the way the free market works doesn't allow for 0:05:57.680 --> 0:05:59.920 that to happen. You see, if I see somebody make 0:06:00.200 --> 0:06:04.360 two hundred percent profit margins on turkey or oil or 0:06:04.400 --> 0:06:06.960 ice cream, then I'm going to go, Man, there's a 0:06:07.000 --> 0:06:09.720 lot of money there. I'm gonna go make turkey or 0:06:09.800 --> 0:06:12.960 produce oil or sell ice cream. And instead of making 0:06:13.000 --> 0:06:15.240 two hundred percent, I'll make one hundred percent. And then 0:06:15.279 --> 0:06:16.800 someone else sees that and goes, well, I'll do that, 0:06:16.839 --> 0:06:18.760 but I'll make fifty percent, and someone else sys, well, 0:06:18.760 --> 0:06:20.520 i'll do that, but i'll make thirty percent, and then 0:06:20.520 --> 0:06:23.599 someone else does twenty percent. And you can see through competition, 0:06:23.680 --> 0:06:27.599 it eats into those profit margins until profit margins getting 0:06:27.600 --> 0:06:30.440 shrunk so little that nobody's making money. Then a few 0:06:30.480 --> 0:06:33.960 businesses go out of business, and somewhere the price stabilizes 0:06:34.520 --> 0:06:37.880 at just the right blend of profitability for the business 0:06:37.920 --> 0:06:40.719 to day in business and affordability for the customer to use. 0:06:41.040 --> 0:06:45.280 It's competition that eats into that. You see. It's impossible 0:06:45.320 --> 0:06:48.680 for a business to continue to over gouge without competition 0:06:48.720 --> 0:06:52.880 coming into get into that unless the government enables that. 0:06:53.200 --> 0:06:55.760 You see, it's the government that enables the monopolies to happen, 0:06:56.160 --> 0:06:58.320 and that's what prevents it. Now, in the case of food, 0:06:58.320 --> 0:07:00.919 that's not the case. In the case of food shrink inflation, 0:07:01.520 --> 0:07:04.719 it's because of inflation, and it's because the cost of 0:07:04.720 --> 0:07:07.760 their commodities have gone up so much they've had to 0:07:07.920 --> 0:07:10.000 lower the amount of goods and services that you receive. 0:07:11.040 --> 0:07:14.080 I have a friend who has a restaurant, and he 0:07:14.160 --> 0:07:16.400 said that he's not able to sell steaks anymore. As 0:07:16.440 --> 0:07:18.120 a matter of fact, he's having to change his whole 0:07:18.160 --> 0:07:20.720 menu because he can barely stay in business anymore, and 0:07:20.760 --> 0:07:23.880 he has to start serving lower quality food. He said, 0:07:23.920 --> 0:07:26.200 I can only raise my prices so much, and I 0:07:26.240 --> 0:07:28.960 can't raise my prices because customers will stop coming in. 0:07:29.040 --> 0:07:32.240 I can't raise my prices high enough to offset the 0:07:32.320 --> 0:07:34.760 cost my input costs that have gone up. And so 0:07:34.800 --> 0:07:37.880 my only option is to start serving lesser quality food 0:07:37.880 --> 0:07:40.360 that I have higher profit margins on. So it's another 0:07:40.400 --> 0:07:41.760 way that you can do it. You can serve a 0:07:41.800 --> 0:07:44.360 lower quality food. My friend safety and who wrote the 0:07:44.360 --> 0:07:47.520 Bitcoin standard, talks about Fiat money, Fiat food. A big 0:07:47.560 --> 0:07:50.240 reason why our food has gotten so bad is because 0:07:50.240 --> 0:07:54.480 of inflation forcing manufacturers to try to make food cheaper, cheaper, cheaper, 0:07:54.720 --> 0:07:58.600 substituting for lesser quality of ingredients. Now, let's put this 0:07:58.680 --> 0:08:02.239 into some practical terms that you can understand. So Biden 0:08:02.320 --> 0:08:05.240 did this right at the Super Bowl. So right when 0:08:05.320 --> 0:08:07.840 everyone's thinking about buying snacks for the Super Bowl party, 0:08:07.920 --> 0:08:10.480 they're seeing the sticker shock at the pump or at 0:08:10.600 --> 0:08:13.680 the snack food check out. I guess in this case, 0:08:14.000 --> 0:08:16.480 and he did it specifically when you had the largest 0:08:16.520 --> 0:08:20.120 audience in the world but certainly in America at that time, 0:08:20.160 --> 0:08:24.240 watching the Super Bowl, and he used it specifically to 0:08:24.280 --> 0:08:27.600 go after businesses to divide. He's supposed to be the 0:08:27.680 --> 0:08:29.680 one that brought us all back together, but he constantly 0:08:29.720 --> 0:08:32.200 attacks the MAGA, the right, and then this case the 0:08:32.240 --> 0:08:35.440 business is But again I've explained that why that's false. 0:08:35.679 --> 0:08:38.000 But let's talk about some actual numbers in regard to 0:08:38.040 --> 0:08:40.480 the Super Bowl. So in the first super Bowl, super 0:08:40.520 --> 0:08:43.360 Bowl one, which was nineteen sixty seven, a ticket cost 0:08:43.640 --> 0:08:46.719 ten dollars ten bucks for a super Bowl ticket in 0:08:46.760 --> 0:08:51.400 ninety sixty seven. It took until nineteen seventy five, so 0:08:51.400 --> 0:08:54.680 it took about eight years and prices doubled from ten 0:08:54.720 --> 0:08:58.440 to twenty dollars. Then it took six years to double 0:08:58.800 --> 0:09:01.920 from twenty to forty doll Now we're talking about one 0:09:02.000 --> 0:09:04.800 hundred percent increase here, Okay, we're not talking about a 0:09:04.920 --> 0:09:07.600 five percent or two percent, Like if you're an employee, 0:09:07.720 --> 0:09:10.840 what is your annual increase in your pay two percent, 0:09:10.960 --> 0:09:14.360 three percent? We're talking about one hundred percent increases in 0:09:14.400 --> 0:09:16.360 Super Bowl tickets. If you're just tune in, you're listening 0:09:16.440 --> 0:09:19.640 to the Mark Moss Show. We're talking about shrinkflation and 0:09:19.720 --> 0:09:22.320 how it's eating into your wealth. I'll be right back 0:09:22.360 --> 0:09:26.760 talking more about inflation, shrinkflation and breaking down the real 0:09:26.840 --> 0:09:28.640 root cause on what you can do. Don't go away, 0:09:28.640 --> 0:09:30.880 I'll be right back. All right, Welcome back. If you're 0:09:30.880 --> 0:09:32.559 just tune in, you're listening to the Mark Moss Show. 0:09:32.600 --> 0:09:36.200 We're talking about shrinkflation. We're talking about the government's gas 0:09:36.320 --> 0:09:39.959 lighting us on what shrinkflation is, what the true causes are, 0:09:39.960 --> 0:09:42.120 and just to highlight it, we are going through how 0:09:42.160 --> 0:09:45.360 Biden made an address to the nation right before the 0:09:45.360 --> 0:09:48.200 Super Bowl saying he's fed up with shrinkflation and he 0:09:48.240 --> 0:09:51.000 wants the companies to stop doing it. But we're just 0:09:51.040 --> 0:09:53.240 talking about the real root causes inflation, and we're talking 0:09:53.240 --> 0:09:55.439 about specifically. The Super Bowl tickets are a perfect way 0:09:55.440 --> 0:09:58.200 to see this. The very first Super Bowl tickets were 0:09:58.240 --> 0:10:00.559 ten bucks. It took eight years for the to double 0:10:00.600 --> 0:10:02.360 to twenty bucks. It took six years for them to 0:10:02.400 --> 0:10:07.280 double to forty bucks. Then it took three years to 0:10:07.320 --> 0:10:13.280 go to sixty bucks. Then it took sixteen years to 0:10:13.360 --> 0:10:15.520 double to one hundred and twenty five dollars. That was 0:10:15.600 --> 0:10:19.520 nineteen ninety. Then it took six years to double to 0:10:19.640 --> 0:10:23.199 three hundred and fifty that was nineteen ninety six. Then 0:10:23.240 --> 0:10:28.720 it took twelve years to double to seven hundred. That 0:10:28.800 --> 0:10:32.360 was Super Bowl two thousand and six, seven hundred. Then 0:10:32.400 --> 0:10:37.120 it took another five years to double to fifteen hundred. 0:10:37.320 --> 0:10:41.079 That was in twenty fourteen. And then it only took 0:10:41.559 --> 0:10:44.480 another five years to double to forty three hundred. That 0:10:44.520 --> 0:10:47.520 was Super Bowl twenty nineteen. And then it took one 0:10:47.679 --> 0:10:51.319 year to double from forty three hundred to seventy one hundred. 0:10:51.400 --> 0:10:53.840 That was twenty twenty. And then this year tickets were 0:10:53.880 --> 0:10:58.400 about twenty five thousand dollars. So that's what we call inflation. Now, 0:10:58.720 --> 0:11:01.719 it's not shrink flation shrink inflation. They're basically the same thing. 0:11:01.720 --> 0:11:04.080 It's strengthflation is a way to hide the actual inflation. 0:11:04.360 --> 0:11:06.280 But if there's no better gauge than that, there's also 0:11:06.360 --> 0:11:08.120 like the Big Mac index. I'm not going to read 0:11:08.160 --> 0:11:10.160 that off to you, but like the same Big Mac 0:11:10.200 --> 0:11:11.839 you can see how it costs more and more and more, 0:11:11.880 --> 0:11:13.480 the same gallon of gas, how it costs more and 0:11:13.559 --> 0:11:17.520 more and more, and that is inflation hitting you and 0:11:17.640 --> 0:11:22.440 everybody feels it. But why is the American government going 0:11:22.520 --> 0:11:25.280 out on a full scale campaign to tell us that 0:11:25.320 --> 0:11:30.520 it's not real. Well, part of it is because they 0:11:30.800 --> 0:11:32.920 are facing an election ear and part of it is 0:11:32.920 --> 0:11:35.240 because they're getting ready to do something that's going to 0:11:35.360 --> 0:11:37.400 cause inflation to get even worse. We'll cover that in 0:11:37.440 --> 0:11:40.280 a minute. But what really hit me was actually seeing 0:11:40.360 --> 0:11:43.240 this Biden commercial. Obviously that was a pretty shocking to me, 0:11:43.679 --> 0:11:46.720 and more shocking how everybody seems to fall for that. 0:11:47.120 --> 0:11:50.319 And then at the gym, I said, they have TVs 0:11:50.320 --> 0:11:51.840 on at the gym in the morning. I go there 0:11:51.880 --> 0:11:54.200 before before I come to the studio, and they had 0:11:54.240 --> 0:11:57.800 one on talking about how Americans are feeling it but 0:11:58.080 --> 0:12:01.320 they're not really understanding not as bad as they think 0:12:01.360 --> 0:12:04.280 it is. That was yesterday I saw. And then this 0:12:04.320 --> 0:12:07.040 morning on the gym I saw Janet Yellen was on 0:12:07.120 --> 0:12:11.240 CBS again talking about inflation and how it's not that 0:12:11.360 --> 0:12:13.560 bad and how it's getting better and all these things. 0:12:14.040 --> 0:12:16.720 And so like we have this like full scale media 0:12:16.800 --> 0:12:19.200 blitz going on right now, from Biden addressing the Super 0:12:19.240 --> 0:12:23.280 Bowl to being on mainstream media yesterday to now Janet 0:12:23.320 --> 0:12:25.439 Yellen going on and addressing the nation. When you have 0:12:25.559 --> 0:12:28.760 the president. When you have the Secretary of the US 0:12:28.920 --> 0:12:33.599 Treasury and you have mainstream media running these all consecutively, 0:12:34.480 --> 0:12:37.040 they're trying to get a message out. But what is 0:12:37.080 --> 0:12:42.120 the message? Well, in this exclusive interview, because Janney Ellen 0:12:42.160 --> 0:12:44.440 doesn't do a lot of interviews, and this exclusive interview, 0:12:44.840 --> 0:12:46.920 she tells us what's going on. As matter of fact, 0:12:46.960 --> 0:12:49.040 let's go ahead and play this clip here. 0:12:49.559 --> 0:12:53.280 Do you think the president can win in Michigan in November? 0:12:54.080 --> 0:12:55.439 Well, I certainly hope. 0:12:55.480 --> 0:12:55.560 So. 0:12:56.640 --> 0:12:59.520 I think the economy is going to be good and strong. 0:13:00.000 --> 0:13:03.040 The Michigan economy is critical for Biden's re election campaign. 0:13:03.720 --> 0:13:06.200 So there you have it, right. As I said, money 0:13:06.200 --> 0:13:09.040 should not be political. But yet here she is saying 0:13:09.120 --> 0:13:12.520 it's critical for Biden to win the election. She's sure, 0:13:12.520 --> 0:13:14.760 hope so, And what's critical for Biden to win the 0:13:14.760 --> 0:13:18.319 election is to get the economy under control, get inflation 0:13:18.559 --> 0:13:21.280 under control. And there you can hear it. Now. I 0:13:21.320 --> 0:13:23.920 love it when people say that the FED is independent 0:13:24.120 --> 0:13:26.240 and the Treasury is looking out for the American people, 0:13:26.240 --> 0:13:28.560 But here you can say hear it directly that they 0:13:28.600 --> 0:13:33.040 are working specifically for Biden's re election campaign. Now, when 0:13:33.080 --> 0:13:36.520 you understand that, and you understand that it's a political motivation, 0:13:36.920 --> 0:13:39.640 then it's much easier to understand what it is that 0:13:39.679 --> 0:13:43.080 they might be doing and why they might be doing it. Now, 0:13:43.120 --> 0:13:45.360 you see a lot of people constantly tell me over 0:13:45.400 --> 0:13:47.680 and over and over, you don't understand Mark. The Fed 0:13:47.800 --> 0:13:50.640 can't pivot off their position, the Treasury and the Fed. 0:13:50.679 --> 0:13:53.680 They can't continue to ease the monetary situation because inflation 0:13:53.760 --> 0:13:57.160 will rage. But as you hear it right there, it's 0:13:57.320 --> 0:14:01.120 critical for the reelection campaign. They would much rather have 0:14:01.200 --> 0:14:05.360 inflation than the opposite, which is deflation. Let's go ahead 0:14:05.360 --> 0:14:08.040 and play this next clip so you can hear exactly 0:14:09.240 --> 0:14:10.440 she's saying it. Let's go ahead. 0:14:10.800 --> 0:14:15.599 Americans should feel confident that inflation will come down to 0:14:15.800 --> 0:14:21.240 levels that will no longer really be noticeable or worrisome 0:14:21.720 --> 0:14:23.440 to them. 0:14:23.440 --> 0:14:28.320 So Americans should be confident that it will come down. 0:14:28.400 --> 0:14:30.200 So look, I get it, I get it. I get it. 0:14:31.160 --> 0:14:32.560 You can't afford the same quality of life that you 0:14:32.600 --> 0:14:35.240 had before, and you know you have to eat hamburger 0:14:35.280 --> 0:14:37.440 meat instead of steak now, and you can't drive to 0:14:37.440 --> 0:14:39.160 go see your mom on the weekend because you can't 0:14:39.160 --> 0:14:40.800 afford the gas. I get it, I get it. But 0:14:42.120 --> 0:14:45.240 be confident knowing that it's going to come down. It's 0:14:45.240 --> 0:14:47.560 going to be better. And the best part that she 0:14:47.640 --> 0:14:49.240 said here towards the end, I'm going to play it 0:14:49.280 --> 0:14:50.000 back one more time. 0:14:50.680 --> 0:14:55.440 Americans should feel confident that inflation will come down to 0:14:55.680 --> 0:15:01.120 levels that will no longer really be noticeable or worrisome 0:15:01.560 --> 0:15:02.160 to them. 0:15:02.720 --> 0:15:06.280 So she said it will come back down to levels 0:15:06.320 --> 0:15:10.680 that are no longer noticeable. So what does that mean. 0:15:10.840 --> 0:15:13.360 Let's think about that for a second. So she is 0:15:13.400 --> 0:15:19.600 basically saying that inflation is stealing your wealth, it's eroding 0:15:19.640 --> 0:15:23.440 your purchasing power. People are upset about this, rightfully so, 0:15:24.120 --> 0:15:26.240 and their goal is to get it down to a 0:15:26.320 --> 0:15:28.920 level that you don't really notice it, like the frog 0:15:29.000 --> 0:15:31.200 that's in the boiling pot of water, so to speak. 0:15:31.400 --> 0:15:34.800 You see, the Fed has a target of two percent inflation. 0:15:34.920 --> 0:15:37.920 That's their target. So that means they only want inflation 0:15:38.000 --> 0:15:41.760 to go up by two percent, right, But what that 0:15:41.880 --> 0:15:45.400 means is that they're stealing two percent of my wealth. 0:15:45.880 --> 0:15:49.880 So if I have if I have one hundred thousand 0:15:49.920 --> 0:15:52.320 dollars in the bank, I could buy one hundred thousand 0:15:52.360 --> 0:15:55.440 dollars worth of goods today. But at two percent inflation, 0:15:56.000 --> 0:15:59.040 over five years, I can only buy ninety thousand dollars 0:15:59.080 --> 0:16:01.040 worth of goods and services, even though I still have 0:16:01.160 --> 0:16:04.200 the one hundred thousand in the bank. It only buys 0:16:04.240 --> 0:16:06.560 me ninety thousand worth of goods, so they didn't actually 0:16:06.600 --> 0:16:08.960 steal my money. As in currency units, I still have 0:16:09.000 --> 0:16:12.280 one hundred thousand units of currency. It's the purchasing power 0:16:12.320 --> 0:16:14.560 of that. And what she's saying is we want to 0:16:14.600 --> 0:16:16.640 slow it down to a point that the people, the 0:16:16.680 --> 0:16:19.880 American people, don't realize how much we're stealing from them. 0:16:20.240 --> 0:16:22.960 You see, if people get too much stolen from them, 0:16:22.960 --> 0:16:26.080 they become very angry. We see this happening in other 0:16:26.120 --> 0:16:29.480 countries all over the place, and it quickly erodes the currency. 0:16:29.520 --> 0:16:31.520 So she says that exactly, let's go ahead and play 0:16:31.520 --> 0:16:32.080 this next clip. 0:16:32.120 --> 0:16:35.440 Here, are you and President Biden happy with where inflation 0:16:35.560 --> 0:16:36.120 is right now? 0:16:36.400 --> 0:16:42.280 Well, look, we know that Americans are experiencing discomfort because 0:16:42.360 --> 0:16:48.280 some important prices are hires than they were pre pandemic. 0:16:48.400 --> 0:16:52.359 But what I think is really important is that wages 0:16:52.520 --> 0:16:54.720 have gone up along with prices. 0:16:55.800 --> 0:16:59.000 So she said that it's not really a problem. She said, 0:16:59.360 --> 0:17:02.960 some Americans feel it, you know, some Americans because some 0:17:03.040 --> 0:17:04.880 of the important things they need to buy have gone 0:17:04.960 --> 0:17:07.080 up some of them. But the important thing to keep 0:17:07.119 --> 0:17:10.240 in mind is that your wages have gone up. Okay, 0:17:10.880 --> 0:17:14.320 so that part is true, But the question is have 0:17:14.480 --> 0:17:19.960 wages gone up enough to offset the price is going up? Right? 0:17:20.000 --> 0:17:22.760 So she doesn't say that part, and that's the part 0:17:22.800 --> 0:17:24.880 that's the most important piece. So I want to break 0:17:24.920 --> 0:17:26.840 down this data for you. As a matter of fact. 0:17:26.880 --> 0:17:29.960 We'll look at how much prices have gone up, We'll 0:17:30.000 --> 0:17:32.560 look at how much wages have gone up, and we'll 0:17:32.600 --> 0:17:35.919 start to look at the fracturing going on in the 0:17:36.160 --> 0:17:39.320 economy in people's lives like you. We'll hear from a 0:17:39.359 --> 0:17:42.000 couple people they interviewed in this segment afterwards to hear 0:17:42.000 --> 0:17:44.320 what they have to say, and then of course we're 0:17:44.320 --> 0:17:45.879 going to talk about what you could be doing to 0:17:45.880 --> 0:17:47.879 protect yourself from this. If you're just tuning in and 0:17:47.880 --> 0:17:49.760 you're listening to the Mark Mas Show, of course we're 0:17:49.760 --> 0:17:52.199 talking about the way the world is changing as we 0:17:52.200 --> 0:17:54.760 look at through lens of politics, finance, and technology. Today 0:17:54.800 --> 0:17:58.240 we're talking about inflation, shrinkflation and why the government is 0:17:58.240 --> 0:18:00.200 gaslighting on it. We're back with more minute to oka 0:18:00.200 --> 0:18:03.159 away I'll wear back. All right, welcome back. So if 0:18:03.160 --> 0:18:05.000 you're just tune in, you're listening to the Mark Mass Show, 0:18:05.000 --> 0:18:09.440 we're talking about inflation or shrinkflation and why the government 0:18:09.480 --> 0:18:12.000 is on a full court press to gaslight you. We 0:18:12.040 --> 0:18:14.080 just listened to a clip from Janet Yellen going and 0:18:14.119 --> 0:18:18.200 addressing the nation on CBS News saying that, well, you know, 0:18:18.280 --> 0:18:20.080 some people might notice that some of the important things 0:18:20.119 --> 0:18:22.320 have gone up, but the important thing that they should 0:18:22.320 --> 0:18:26.200 know is that wages have gone up as well. Okay, 0:18:26.840 --> 0:18:30.240 so again that's true, but we have to dig into 0:18:30.240 --> 0:18:32.680 the data to find out is that true or not. So, yes, 0:18:32.840 --> 0:18:34.679 prices have gone up, and yes, wages have gone up. 0:18:34.720 --> 0:18:38.760 The question is have wages gone up more than the 0:18:38.760 --> 0:18:41.760 prices so or have they gone up less? Because at 0:18:41.760 --> 0:18:43.680 the end of the day, we're trying to figure out, 0:18:43.720 --> 0:18:46.240 if we cut through all this noise, is is our 0:18:46.400 --> 0:18:50.680 quality of life going up or down? Am I able 0:18:50.720 --> 0:18:53.240 to buy more goods and services in the future or 0:18:53.320 --> 0:18:56.840 less goods and services? Can I work less hours to 0:18:56.920 --> 0:19:00.879 achieve the same quality of life or less? Inflation has 0:19:00.880 --> 0:19:03.120 been taken that away as a matter of fact, inflation 0:19:03.359 --> 0:19:10.360 added was it three hundred dollars per month of increase. 0:19:10.520 --> 0:19:12.240 The for the average meetia and income in the United 0:19:12.240 --> 0:19:14.280 States at about three and twenty seven dollars a month 0:19:15.040 --> 0:19:17.960 just to maintain their average quality of life. And so 0:19:18.000 --> 0:19:20.760 if you make thirty two dollars an hour, that's ten 0:19:21.000 --> 0:19:24.880 extra hours per month you have to work in order 0:19:24.880 --> 0:19:26.760 to maintain the same quality of life that you had 0:19:26.800 --> 0:19:31.160 just a month before. So the question is are they 0:19:31.200 --> 0:19:33.760 going up? And the key there's a couple things that 0:19:33.760 --> 0:19:34.840 I want to dig into. We're going to go through 0:19:34.840 --> 0:19:37.680 these numbers. A couple things is, first of all, the 0:19:37.720 --> 0:19:42.119 price is going up. The CPI, the consumer price and 0:19:42.720 --> 0:19:45.960 inflation is given to us. That number is given to 0:19:46.040 --> 0:19:48.920 us by the BLS, the Bureau of Labor Statistics, which 0:19:48.960 --> 0:19:52.040 is the government. And it's important to understand that they 0:19:52.280 --> 0:19:55.480 change that the way they calculate that number all the 0:19:55.520 --> 0:19:59.239 time through since the eighties, since they started calculating that, 0:19:59.480 --> 0:20:03.840 there's been multiple occasions where they've overhauled it dramatically. They 0:20:03.920 --> 0:20:07.840 constantly manipulate the basket to get different types of outcomes. 0:20:07.880 --> 0:20:10.359 Will break that down for you, and so the number 0:20:10.400 --> 0:20:14.240 that they're telling us is the official government number, but 0:20:14.280 --> 0:20:17.080 it's not the real number. And this is why it's 0:20:17.240 --> 0:20:20.639