What if inflation isn’t a policy mistake\u2014but the policy itself?<\/strong><\/p>\n For decades, Americans were told rising prices were temporary, manageable, and necessary for economic growth. Yet every trip to the grocery store, every insurance bill, and every housing payment tells a different story.<\/p>\n According to renowned economist Mark Skousen, the United States has quietly entered an era of permanent inflation<\/strong>\u2014a structural reality that neither politicians nor central bankers seem willing to reverse.<\/p>\n And despite optimism surrounding potential changes at the Federal Reserve, Skousen believes even a new Fed chair may struggle to stop what’s already been set in motion.<\/p>\n For retirees, savers, and anyone relying on the purchasing power of the dollar, the implications could be profound.<\/p>\n The Federal Reserve was originally tasked with two primary objectives:<\/p>\n But somewhere along the way, the definition of “price stability” changed.<\/p>\n Historically, stable prices meant prices remained relatively unchanged over time. Today, the Fed openly targets approximately 2% inflation annually.<\/p>\n That may sound insignificant.<\/p>\n But over time, 2% inflation becomes a silent wealth confiscation mechanism.<\/p>\n Consider the math:<\/p>\n As Skousen points out, central bankers rarely wait for inflation to return to target levels before discussing rate cuts.<\/p>\n The modern monetary system has become conditioned to easy money.<\/strong><\/p>\n And easy money inevitably creates more currency units chasing the same goods and services.<\/p>\n The result?<\/p>\n A slow but relentless decline in purchasing power.<\/p>\n While many investors focus on stock indexes reaching new highs, the bond market is telling a different story.<\/p>\n Rising bond yields often signal growing concerns about:<\/p>\n The uncomfortable reality is that America now faces a debt burden exceeding levels once considered unimaginable.<\/p>\n Every percentage point increase in interest rates translates into hundreds of billions of dollars in additional financing costs.<\/p>\n This creates a dangerous dilemma:<\/p>\n Politicians overwhelmingly prefer the second option.<\/p>\n And history suggests central banks often do as well.<\/p>\n One of the most intriguing developments discussed by Skousen is the growing attention surrounding Kevin Warsh as a potential Federal Reserve leader.<\/p>\n Warsh has historically criticized:<\/p>\n His reputation as an inflation hawk has led some investors to believe he could become a modern-day Paul Volcker.<\/p>\n Volcker famously crushed inflation during the early 1980s by pushing interest rates to painful levels.<\/p>\n But today’s environment is dramatically different.<\/p>\n Back then:<\/p>\n Today:<\/p>\n This raises a critical question:<\/p>\n Can any Fed chair truly fight inflation when the entire financial system depends on perpetual monetary support?<\/strong><\/p>\n Many analysts remain skeptical.<\/p>\n Mainstream headlines often point to:<\/p>\n Yet beneath the surface, warning signs continue to emerge.<\/p>\n Skousen notes that smaller businesses remain under pressure while large corporations capture an increasing share of economic activity.<\/p>\n This creates a two-tier economy:<\/p>\n Meanwhile, productivity gains from artificial intelligence may not immediately translate into broad-based prosperity.<\/p>\n History offers a warning.<\/p>\n During the late 1990s dot-com boom, investors assumed revolutionary technology justified virtually any valuation.<\/p>\n The technology was real.<\/p>\n The bubble was real too.<\/p>\n Today’s AI revolution could produce a similar dynamic.<\/p>\n If inflation becomes a permanent feature of the financial system, investors must ask a simple question:<\/p>\n What happens to savings held entirely in dollars?<\/strong><\/p>\n The answer is straightforward.<\/p>\n Every year inflation remains positive, the purchasing power of cash declines.<\/p>\n That is why central banks themselves have become some of the largest buyers of gold in recent years.<\/p>\n Gold offers characteristics fiat currencies cannot:<\/p>\n Silver offers many of the same benefits while also benefiting from growing industrial demand.<\/p>\n Skousen himself noted that despite short-term fluctuations, he is not rushing to sell his gold holdings.<\/p>\n That observation speaks volumes.<\/p>\n When lifelong economists remain committed to precious metals despite market volatility, it reflects deeper concerns about the long-term direction of monetary policy.<\/p>\n For decades, Americans trusted the dollar as the ultimate store of value.<\/p>\n Today that assumption deserves scrutiny.<\/p>\n The dollar remains the world’s reserve currency.<\/p>\n But reserve currencies throughout history have eventually faced the same challenge:<\/p>\n Too much debt. Too much money creation. Too many promises.<\/strong><\/p>\n Physical gold and silver exist outside that system.<\/p>\n Unlike digital balances:<\/p>\n This is why many financially conservative investors continue allocating a portion of their portfolios toward tangible assets.<\/p>\n Not because they expect catastrophe tomorrow.<\/p>\n But because they recognize that permanent inflation steadily erodes paper wealth over time.<\/p>\n Mark Skousen’s warning is not about hyperinflation.<\/p>\n It’s arguably more concerning.<\/p>\n It’s about a future where inflation never truly disappears.<\/p>\n A future where central banks consistently choose monetary expansion over monetary discipline.<\/p>\n A future where purchasing power declines gradually, year after year, while official narratives insist everything remains under control.<\/p>\n Whether Kevin Warsh becomes the next Fed chair or not, the deeper issue remains unchanged:<\/p>\n The financial system has become dependent on inflation.<\/p>\n And if inflation is now permanent, investors must rethink how they protect their wealth in the years ahead.<\/p>\n ITM Trading has over 28 years of experience helping clients safeguard their wealth through personalized strategies built on physical gold and silver. Our team of experts delivers research-backed guidance tailored to today\u2019s economic threats.<\/p>\n Get expert guidance from our team of analysts with 28+ years of experience.<\/p>\n
\n<\/div>\nThe Fed’s Quiet Acceptance of Permanent Inflation<\/h2>\n
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\n<\/div>\nWhy the Bond Market May Be Sounding the Alarm<\/h2>\n
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Option 1: Fight Inflation Aggressively<\/h3>\n
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Option 2: Protect Economic Growth<\/h3>\n
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\n<\/div>\nKevin Warsh: Inflation Hawk or Future Fed Insider?<\/h2>\n
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\n<\/div>\nThe Illusion of Strength: Why Markets May Be Sending Mixed Signals<\/h2>\n
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Winners<\/h3>\n
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Strugglers<\/h3>\n
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\n<\/div>\nWhy Permanent Inflation Favors Gold and Silver<\/h2>\n
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\n<\/div>\nGold vs Dollar: The Wealth Preservation Debate<\/h2>\n
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\n<\/div>\nConclusion: Inflation May Be the New Normal<\/h2>\n
\n<\/div>\nAbout ITM Trading<\/h2>\n
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