Total Federal spending for fiscal 2023 stands at over $6 trillion with a projected deficit of $2 trillion by the nonpartisan Committee for a Responsible Federal Budget (CRFB). This marks a reversal from last year’s drop, increasing concerns over deficits, inflation, and spending. The proposed budget for FY24 is $6.9 trillion, fanning the flames of the debate over allocations and deficit levels. The 19% inflation experienced since January 2020 is permanent. There are no deflationary plans to bring back price levels to what they were in 2020. Our best hope, therefore, is only to slow the amount that inflation continues to increase in the future. At the long-term average inflation rate of 3% since the formation of the CPI index in 1919, a dollar depreciates to 74 cents in a decade, and to 22 cents in 50 years.
The dollar has lost over 96% of its value since the Federal Reserve was founded in 1913. Investors are encouraged to strategize for long-term preservation and growth amidst the prevailing economic inflation scenario.
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