'Yet another Fed decision that just reminds me of why I love Bitcoin in the face of endless monetary debasement.
The Federal Reserve just voted to keep interest rates unchanged, even as inflation remains elevated.
Their stated objective remains 2% inflation, measured using the Personal Consumption Expenditures (PCE) price index.
I want everyone to understand what this actually means over a generation.
At 2% annual inflation, the U.S. dollar loses 32.7% of its purchasing power over 20 years.
That's a 48.59% cumulative increase in consumer prices. A basket of goods costing $100 today would cost $148.59 in 20 years.
And that's assuming the Federal Reserve achieves its inflation target perfectly, every single year.
Now consider where we actually are.
The latest PCE data shows prices increased 2.43% during the first eight months of 2026.
Annualized on a compounded basis, that's 3.67% inflation.
This is the Federal Reserve's own preferred inflation measurement, running at an annualized pace substantially above its stated target.
Now consider the consequences if that rate persisted.
At 3.67% annual inflation compounded over 20 years, the U.S. dollar loses 51.37% of its purchasing power.
The cumulative price increase would be 105.62%.
Your $100 basket of goods would cost $205.62.
And here's where the mathematics becomes extraordinary.
The median existing American home currently sells for $417,500.
If home prices appreciated at the same 3.67% annual rate, that home would cost approximately $858,467 in 2046.
That's nearly $441,000 in nominal appreciation.
And the real, inflation-adjusted appreciation?
Zero.
A house could more than double in nominal price over a generation without increasing in real value whatsoever.
We spend our entire lives accumulating dollars, negotiating raises, building home equity, and measuring our financial progress using nominal figures.
Meanwhile, the purchasing power of the unit we use to measure that progress continuously deteriorates.
And even if the Federal Reserve achieves exactly what it considers price stability, that still means nearly one-third of the dollar's purchasing power disappearing over 20 years.
At the current annualized PCE pace, that hypothetical loss exceeds half.
These aren't exotic assumptions or complicated financial models. They're the mathematical consequences of compounding inflation, calculated using the Federal Reserve's preferred price index.
Debasement is terrifying.
Thank God for Bitcoin.
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