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The quiet erosion: How inflation policy masks a systemic devaluation of the dollar
- October 1, 2025: Vol. 18, Number 9

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The quiet erosion: How inflation policy masks a systemic devaluation of the dollar

by Geoffrey Dohrmann

The Federal Reserve’s long-standing inflation target — currently set at 2.0 percent annually — is often framed as a pillar of economic stability and prudence. But beneath this seemingly benign figure lies a deliberate and systematic policy that slowly erodes the value of the world’s reserve currency: the U.S. dollar.

While the Fed claims this target fosters higher employment and price stability, the real-world effect is a quiet but persistent devaluation of our currency. And this policy is not accidental — it is deeply intertwined with the federal government’s ballooning debt and its need to refinance it perpetually.

Let’s be clear: when the cost of goods and services rises by 2 percent each year, the purchasing power of your dollar falls by the same amount. Throughout a decade, that’s nearly a 20 percent loss in value. This is not a bug in the system — it’s a feature. Inflation, in this context, is not a side effect of economic growth, it’s a too

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