Deflation Is Not Your Enemy — But Inflation Targeting Is a Declaration of War on Your Wealth
We’re constantly told to fear deflation. That’s the gospel. If prices fall, the story goes, people stop spending, businesses collapse, jobs vanish, and the economy grinds to a halt. The so-called “solution”? Always the same: print more money, inflate the currency, and make sure your dollars buy less tomorrow than they do today.
It’s the central planner’s favorite bedtime story — and it’s dead wrong.
Let me tell you the truth: deflation — real, organic deflation — is not the threat. The threat is what central banks do to prevent it. The real danger is the deliberate destruction of your purchasing power through inflation targeting, and now, even higher inflation targets.
This isn’t just a technical policy shift. It’s a systemic betrayal of anyone who saves, works, or invests in anything with real value.
What Deflation Actually Is — and Why It’s Good for You
Forget the academic fog. Let’s talk common sense.
Deflation — when it happens naturally — is what occurs when an economy gets more productive. Think about it: if businesses can produce more for less, prices fall because efficiency is rising. That means you, the consumer, get more for every dollar. Your money goes further. Your savings grow in real terms.
That’s not a crisis. That’s progress.
We’ve seen it already. Look at tech. A smartphone today outclasses a $10,000 supercomputer from twenty years ago. A flat-screen TV costs a fraction of what it did in the early 2000s. Did falling prices destroy those industries? No — they supercharged them.
This is what the Austrian economists call deflationary growth — the kind of growth that actually improves your life without burying you in debt or pushing the dollar closer to zero.
But here’s the kicker: central banks don’t like that kind of progress.
Why the Elites Hate Deflation
The financial establishment doesn’t care about your purchasing power. It cares about debt — and the ability to service that debt with ever-cheaper dollars.
That’s why deflation terrifies them. Not because it hurts people. But because it helps savers and punishes reckless borrowing.
The economists who dominate the Fed and IMF are stuck in a flawed model: they treat “the price level” like a single balloon that has to rise forever, lest the whole economy implode. That’s fantasy economics. Prices don’t move in unison — they move like a swarm. Some go up, some go down, based on supply, demand, innovation, scarcity. That’s reality.
But if you accept that falling prices in productive sectors are healthy, the central bank narrative collapses. You realize they’re inflating on purpose, not by accident — and they’re doing it to protect a rigged system.
Inflation Targeting: The Official Scam
Now we get to the heart of the matter.
Central banks openly admit they aim for “2% inflation” per year — meaning they deliberately destroy 2% of your purchasing power annually, forever. That’s not a bug in the system. That is the system.
And now, they're floating 4% to 5% inflation targets — a quiet but radical escalation. Why? Because it gives them more room to slash interest rates in the next crisis without being blamed for runaway inflation. In other words, they want to burn your savings faster, just to make monetary policy more “flexible.”
Make no mistake: this is a premeditated assault on the middle class. It’s legalized theft dressed up as economic management.
If you’re holding dollars in a savings account, you are the mark.
What This Means for Gold and Silver Investors
Here’s where the fog clears — and the opportunity emerges.
If you understand that inflation is a policy, not an accident, then hard assets like gold and silver stop being speculative. They become defensive.
Let’s break it down:
- Deflation rewards prudence. When prices fall due to productivity, your savings and your metals gain real value.
- Inflation protects the debtor class. It’s not about helping workers — it’s about devaluing debt obligations by stealth.
- Higher inflation targets are economic warfare. A 4–5% annual inflation goal is an admission that the dollar will be sacrificed to keep the debt game going.
- Narrative control is monetary control. They label deflation as “bad” to justify inflation. But that narrative is crumbling — and they know it.
This is not a drill. It’s not an abstraction. If you're holding physical metals, you're already a step ahead. You're opting out of a system designed to fail.
The Path Forward: Protect What’s Yours
Dr. Joseph Salerno’s insights are vital, but the implications are even bigger. We’re entering a stage of economic history where inflation will no longer be treated as an emergency — but as policy.
If you're not prepared, you'll be steamrolled.
If you want to understand how to insulate your savings from the next engineered crisis, I strongly recommend grabbing a copy of Bill Brocius’ free guide:
👉 “7 Steps to Protect Your Account from Bank Failure”
Better yet, join Bill’s Inner Circle for $19.95/month and get direct insights from the man I consider the most lucid financial mind of our time. You'll get real strategies, not establishment talking points.
And if you haven’t read it yet, Bill’s book End of Banking As You Know It is essential reading for anyone who wants to escape the dollar death spiral.
The system is not broken. It’s working exactly as designed — to drain you slowly while convincing you it’s helping.
Don’t be the last one holding the bag. Prepare now. Diversify into assets that hold real value — and opt out of the monetary manipulation that’s coming down the pipeline.
— Eric Blair
