The New 2026 Inflation Is Making Salaries & Savers Poorer

[00:00:00]We just got the latest inflation report which says that we have now the highest inflation that we have seen since 2023.

[00:00:08]And in response, President Trump said, quote, "I love the inflation." Why?

[00:00:13]Because according to President Trump, this inflation is due to the conflict in the Middle East. And as soon as the war ends, President Trump says, quote, "Inflation is going to come down like a rock." But there's a lot of things here that I think people are overlooking when it comes to inflation. the inflation rate and where our economy might be moving. So, in this video, I want to break it all down because there's a lot of different things that I want you to understand. Let me start by explaining what's going on with inflation because the latest inflation report says that the prices of things are going up by 4.2% a year. This is the highest number that we have seen since April 2023. And the biggest driver here is oil prices.

[00:00:55]Surprise, surprise. And the reason why oil prices are so high is because after the United States attacked Iran, then Iran closed something called the straight of Hormuz. That is this area in the Middle East where a lot of oil would pass through. And as that straight was shut down, the supply of oil around the world fell because oil could not transport from one part of the world to the other. So supply of oil goes down.

[00:01:17]People still need oil. So the demand for oil is still here causing the prices of oil to go up. Well, oil prices are used for everything. gas, diesel, groceries, fertilizer. And that's one of the reasons now why we are seeing these elevated inflation rates. But even if we remove energy costs, what you'll see is that inflation is still a problem. If we remove the energy cost and food costs completely, what you'll see is that inflation is still right around 3%, which is a lot higher than what the Federal Reserve Bank wants. And now the question is, if the war does end tomorrow and oil prices fall, does that mean inflation is going to fall? And this is where you have to be able to understand the difference between inflation and inflation rate because these are two completely different things and they mean two different things for your wallet. By the way, this is one of the reasons why on June 16th, I'm hosting my live free and virtual investor workshop right around the corner now. June 16th at 12:00 p.m. Eastern time, I'm going live to explain where investment opportunities are changing because under Trump's economy, with the changes with AI, with the changes that we're seeing with China, with the changes that we're seeing all around the world, this is creating some of the biggest investment opportunities that we have seen in a very long time. On this workshop, I'll be going over where those opportunities are. So, if you're an investor and you want to see how you can invest your money better in 2026, I invite you to join me on this live workshop for free.

[00:02:48]I have the link for you down in the description below. And when you sign up, you're also going to get access to Market Briefs, which is my newsletter for investors, completely free. Just a side note that our software has a limited number of people that can actually join live. So, if you are interested, please register soon and make sure you show up at least a few minutes early because yes, it is live at 12:00 p.m. Eastern time, noon, and there's a limited number of people that can actually join live. Now when we talk about inflation versus inflation rate, if something goes up in price from $100 to $110, that is the inflation.

[00:03:21]And if this happened over the period of one year, that means the inflation rate was 10%.

[00:03:28]Well, what happens if the inflation rate falls from 10% down to 2%. A lot of people would be celebrating. The inflation rate is falling. It has crashed from 10% to 2% and things are better. But that doesn't mean that the inflation went away. It doesn't mean that the prices of things are falling.

[00:03:46]It means that the prices of things are rising less fast. This was a big shock to many people over the last 5 years because after the pandemic hit, we started to see inflation in late 2020, 2021, 2022, 2023. And we were told that this was transitory inflation. The idea is that this inflation was just temporary due to all the stimulus with all the pandemic stuff. Well, when inflation rate started to fall, we started to hear this news that the inflation rate is falling. We are seeing inflation fall from 9% down to 3%. And people were celebrating this great news.

[00:04:26]But the average person did not feel that win. The reason is we'd already seen this huge runup in prices, right? This inflation had happened and then the inflation rate fell from 9% down to 3 or 4%. Which means that the prices of things were still rising. They just weren't rising as fast as before. So when you hear that the inflation rate is falling, it doesn't mean that the prices of things fall. It means that the things are rising in price less fast than before. So now the question that a lot of people have is what's going to happen once this war ends in the Middle East whenever it ends. Are we going to see inflation fall or are we just going to see the inflation rate fall? And we don't know because we know that if oil prices fall, yeah, we'll probably see gas prices fall, diesel prices fall, but for the prices of things otherwise in the economy, is that going to also fall?

[00:05:26]because we know that it's not just energy prices causing this high inflation. There's many other things as well that are partially due to the energy and partially not due to the energy.

[00:05:39]And so there's a chance that sure we've seen this big run up in prices in the last few months, but will the prices of things actually fall? And that's the part that we don't know because if businesses get used to or have higher costs, they get used to selling stuff at higher prices, it can be harder for them to want to actually reduce that cost.

[00:05:59]And that's where we don't know what's going to happen. But this is where we're starting to see more and more people feel the pain because of this. Let me start by talking about social security.

[00:06:06]Because this year, if you are on social security, you received a raise. Your raise is 2.8%. This is called COLA, the cost of living adjustment. So, you're making 2.8% more money this year than you were last year. It's about $56 more a month. Well, remember what I said just a minute ago. Inflation is 4.2%.

[00:06:31]So, your income went up by 2.8% but the prices of things on average grew by 4.2%. So, you are effectively poorer.

[00:06:38]But that's not all. Do you want to know what's interesting about Social Security? And this is really unfortunate actually. If you're also on Medicare, well, your Medicare cost, which comes out of your Social Security check, has gone up by 9.7%.

[00:06:55]This year, you on Social Security got a 2.8% raise.

[00:07:00]Inflation is 4.2%. Your Medicare costs are up 9.7%, which means you are effectively poorer.

[00:07:07]Why does this matter? Well, for one, while you don't want to rely on social security to be able to live any sort of retirement, I mean, it's very unfortunate because we were sold to this idea that every time you go to work to get paid, the government's going to take some of your money called social security and they're going to invest it for you. That way, you can retire comfortably.

[00:07:28]Unfortunately, that doesn't seem to be the case because the government wasn't very good with money for a lot of reasons. And now that social security check doesn't have as much buying power.

[00:07:37]Now, you can say, "Well, can't the government just give you a bigger social security check?" And sure, they could, but then they'd either have to raise your taxes so you can pay for somebody else's retirement because social security is drying up, or the government's going to have to print that money with the Federal Reserve Bank and then give you a bigger check, but now you just got a bigger check, but you're going to have a bigger inflation problem. So, yeah, you got a bigger check, but it doesn't buy you a thing of bread or eggs. That's the concern. And so we're seeing now more and more people start to face this pain of inflation.

[00:08:09]Not to mention wages. Let's say that you're still working and you're not on social security. Well, what we have seen is that real wages over the last year did not go up. They fell 0.7%.

[00:08:25]This is according to the United States government data. That over the last year, yeah, wages went up. The amount of dollars you're getting have probably gone up. But if you compare that to the reported inflation numbers, not the real inflation that a lot of people feel, but the reported government inflation numbers, wages in the United States have actually fallen relative to inflation by 0.7%.

[00:08:49]Why? Because of the higher cost of living. And then we have to take a look at savings. Because if you have your money in a savings account, well, now your savings accounts that are generating interest are less valuable.

[00:09:03]Because if inflation is 4.2% and your savings are paying 1%, well, that means every day that your money is sitting in the bank, it is losing value to inflation and you are slowly becoming poorer. Because if your money grows by 1% but your groceries are going by 4%, well, you're losing value. Your savings are going to buy you less groceries in one year than they could now. And now you might say, "Well, does PPA have a high yield savings account?" Good. I'd recommend you have a high yield savings account if you have one. But even the best high yield savings accounts in America today are not paying 4%. And then when you generate that 3 and a half% on your high yield savings, you still have to pay taxes on it as well.

[00:09:46]I'm not saying you shouldn't save money.

[00:09:48]You need to know how to save your money strategically. What I'm saying is if you are relying on a paycheck, whether it's from the government and social security, whether it's from your hard work in your job or you're relying on your savings, you are effectively becoming poorer because of this inflation problem. The way that you get out is by being an investor. Because if we take a look at now how investments have performed relative to inflation, investors get richer when inflation happens. If you're relying on social security, I can show you the numbers.

[00:10:23]You're becoming poorer because of inflation. If you're relying on your paycheck, the average person is becoming poorer because of inflation. If you're relying on your savings, the average person is becoming poorer because of inflation. Well, let's take a look at how the stock market has done relative to inflation. Between 2019 to now, the stock market has gone up by around 155%.

[00:10:46]Cumulative inflation over those last seven years about 30%. Which means people working jobs became poorer, savers became poorer, investors became richer. This is why it is so important for you to understand what's happening because this inflation problem is not temporary. Inflation is not something that started in 2020. It's not something that started in the 201s. It's not something that started in 2020. It has been happening for a long time.

[00:11:13]And throughout these many decades of us seeing inflation, the same trend has emerged.

[00:11:20]Investors get richer because of inflation. The average person who is relying on a paycheck or their savings is becoming poorer. This is why you need to become an investor. This is why I have my workshop on June 16th. If you haven't registered for it yet, again, I have the link for you down in the description. But this is why you need to build your financial education and become an investor. Because in our economic system, it's kind of weird.

[00:11:43]We're taught to go to school to get a good job so you can earn a big income and then you can save money. I mean, this is what we're taught to do. I was taught the same thing.

[00:11:53]Well, what's so ironic about it is when you follow that system, you are working so hard to make everybody else rich except you.

[00:12:03]And this is where people get upset. They say, "Oh, you shouldn't worry about money. Just do things that make you happy." And that's all good, but why do you go to work every single day? You go to work to get paid. I mean, you want to have some freedom, but there is a disconnect between that freedom and your work. Because we think that if I work hard and I save money, I do the right things, I'm going to have that freedom. Except that freedom comes from owning the right assets. And owning those right assets come from financial education. But that job came from your formal education. And this is that disconnect that there is this formal education that you get to get your degree, to get your job, to get your income. But the financial education is what makes you wealthy. And the freedom comes from your financial education. And in this system, you were rewarded for being financially educated and you were punished if you are not financially educated.

[00:12:59]And anytime we hear about this inflation, there's always these talks about how it's just a temporary problem.

[00:13:05]Don't worry about it. It's going to get better very fast. And maybe the inflation rate falls. But the reality is what we have seen time and time again is that the inflation problem doesn't go away. It just gets worse at a shorter speed or at a slower speed.

[00:13:20]And that's what I want you to understand is that in this economic system, the person that becomes wealthy is the financially educated, not the person that has the smartest degree or the person that has the best job or the highest income. It is the person that understands how to use their money.

[00:13:36]That's why investing in money is so important because in this system, it is the investor that becomes wealthier. And stocks are one way to go about it. Real estate is another way that you can invest. Gold is, I mean, it's a way you can save hard money. I don't like to call that an investment. But there are many ways you can invest your money. You don't need a million dollars to start.

[00:13:54]You don't need $100,000. You don't even need $1,000.

[00:13:58]What you need is some money. And then you have to stay consistent. I call it ABB. Always be buying every week. Put aside $10, $100, $1,000, whatever you can afford. You start by putting some money aside every week. That way you can invest that money and do it consistently. Not a one-time investment, but you do this consistently for weeks, months, years, decades. And that's how you become wealthy. Because guess what?

[00:14:26]10 years from now, inflation is not going to suddenly go away. It's going to continue happening. And what we know based off of history, if history is any indication of the future, that inflation that we're going to see is going to make investors wealthier. Well, which side do you want to be on? The side that the paycheck has not kept up with inflation or the side where investors got richer because of inflation. It's the way that the system works. It's unfortunate. Hate it or love it. This is what's happening.

[00:14:54]So, I want you to learn it and be able to use it because most people are just getting abused by it. I want you to understand what's happening. That way, you can use it to your advantage.

[00:15:06]And now what you can start to see is how you can build wealth in the system and actually have that freedom because you started investing your money. Now there are ways to amplify your returns. This is what your researchbased investing is all about. This is what my workshop is going to be going over investing more money having more time to grow your money to let it compound. That's where the wealth is built. And I'm not saying that markets don't go down or that investors don't have down periods.

[00:15:32]That's a part of our system. Recessions are a part of our economy. Market crashes are part of our economy. They happen. They have happened in the past and they will continue to happen. But if you're a long-term investor, what you'll see is even if you invested your money at the worst times in history, you invested your money before the 2022 market crash, you invested your money before the 2020 market crash, you invested your money right before the 2008 market crash, and you invested your money right before the 2000 market crash, you would still be rich today if you just held on. And that's what you need to understand. is that it's not about trying to time the market. It's about owning the market for a long enough period of time and then when markets go down, you buy even more aggressively because you were a longterm investor.

[00:16:17]That's where the wealth is built. So, we don't know where inflation is going to be in a month or six months, but what we know is that inflation is starting to become a bigger problem and people are starting to become concerned about it.

[00:16:29]And what you want to understand is how inflation impacts the economy, how it impacts your paycheck, how it impacts your savings, and how it can make some people wealthier. Because inflation makes some people wealthier while making most people poorer. And if you don't understand what inflation does to your wealth, you're probably the one that's paying the price. And that's why now after this video, you understand how it works. That way you can use it to your advantage instead of being the person that's screwed over by it. If you got value out of this video, the best thank you was a referral. So, if you could please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education.

[00:17:10]Thank you. President Trump is now unleashing the biggest AI push the world has ever seen.

[00:17:16]>> America is the country that started the AI race. And as president of the United States, I'm here today to declare that America [music] is going to win it. In plain English, that means hundreds of billions of your tax dollars are