As Donald Trump prepares to retake office on January 20th, the United States faces an economic crisis that’s been building for years. While official reports tout falling inflation and a “booming” labor market, alternative data from ShadowStats reveals the grim truth: inflation is eroding wealth, economic activity is contracting, and we’re already in the midst of an inflationary recession.
This isn’t just another downturn. It’s a systemic crisis rooted in decades of unsound monetary policy, reckless government spending, and the erosion of fiscal discipline. But it’s not too late to turn things around. At Citizens for Sound Money (C4SM), we’re already working on solutions that can pave the way for recovery—and we’re calling on Trump and state leaders to join us.
The Numbers They Don’t Want You to See
Inflation: Worse Than Reported
The Consumer Price Index (CPI) for November 2024 claims inflation is just 2.75%, but ShadowStats, using the pre-1980 calculation, puts it at 10.5%. This isn’t just a statistical difference—it’s a deliberate distortion designed to mask the true cost of living.
Consider this: since February 2020, the official CPI shows prices have risen 22%, but ShadowStats reveals a staggering 69.5% increase in real purchasing power losses. This manipulation allows the government to suppress Social Security cost-of-living adjustments (COLAs) and understate the financial pain Americans are enduring.
Jobs Data: A House of Cards
Official labor market data paints a rosy picture, but deeper analysis reveals cracks in the facade:
- The U.S. Labor Department admitted overstating job growth by 818,000 jobs between April 2023 and March 2024.
- ShadowStats’ broader unemployment metrics show far higher rates than reported, reflecting underemployment and declining labor force participation.
Consumer confidence confirms what the manipulated numbers can’t hide. The University of Michigan’s January 2025 Consumer Sentiment Index is still 26.7% below pre-pandemic levels, showing widespread economic anxiety despite the headlines.
Economic Growth? A Dangerous Illusion
While GDP growth is officially reported at over 3%, key metrics tell a different story:
- Retail Sales: Falling in real terms, signaling weaker consumer demand.
- Housing Starts: Declining as interest rates and affordability issues crush the market.
- Industrial Production and Freight Activity: Contracting year-over-year, reflecting reduced economic output.
- Consumer Sentiment: Persistent pessimism across demographics.
ShadowStats confirms these trends, pointing to an economy in contraction, not expansion. The combination of rising inflation and slowing growth—stagflation—is already here.
Trump’s Day One To-Do List
- End Capital Gains Taxes on Gold and Silver
Gold and silver are not speculative investments; they are sound money. Yet Americans are penalized with capital gains taxes when they sell these assets, even though the “gains” are often just inflation adjustments. Eliminating federal capital gains taxes on gold and silver would:
- Restore their role as a hedge against inflation.
- Encourage Americans to protect their wealth with real assets.
- Lay the groundwork for sound money reform.
States like Wyoming, Arizona, and Utah have already removed sales taxes on precious metals, and some are moving to eliminate capital gains taxes as well. Trump should make this a federal priority.
- Champion Sound Money Legislation
At Citizens for Sound Money, we’ve developed model legislation to help states transition to sound money principles. These bills focus on:
- Making gold and silver legal tender.
- Removing sales and capital gains taxes on precious metals.
- Introducing electronic gold- and silver-backed currencies as legal tender.
- Requiring state governments to allocate a portion of their reserves to gold and silver.
Six states already recognize gold and silver as legal tender, but more must follow. Trump can support this movement by encouraging state legislatures to adopt C4SM’s model legislation. States can contact us directly for assistance in drafting and implementing these bills.
- Audit the Federal Reserve
The Federal Reserve’s unchecked power to manipulate interest rates and inflate the money supply has created a boom-and-bust cycle that disproportionately harms the middle class. An audit would:
- Expose how its policies have fueled wealth inequality and systemic instability.
- Increase transparency and accountability in monetary policy.
- Lay the foundation for long-term reform.
- Slash Deficit Spending
Unrestrained government spending is one of the primary drivers of inflation. Trump must:
- Implement aggressive spending cuts, targeting wasteful programs.
- Push for a balanced budget amendment to impose fiscal discipline.
- Address entitlement reform to ensure long-term sustainability without breaking promises to retirees.
- Educate the Public on Sound Money
Trump has a unique ability to communicate directly with the American people. He should use this platform to:
- Expose the flaws in CPI, GDP, and employment data.
- Highlight the benefits of sound money policies, including gold and silver-backed currencies.
- Rally support for state-level sound money initiatives.
What Citizens for Sound Money is Doing
At C4SM, we’re leading the charge to restore sound money principles in America. Our efforts include:
- Drafting and advocating for model legislation that states can adopt to legalize gold and silver as tender, remove taxation on precious metals, and implement electronic sound money systems.
- Educating lawmakers through our Legislative Education Program, which focuses on the history of sound money and its role in a stable economy.
- Engaging the public through campaigns, educational materials, and events to build grassroots support for sound money policies.
If your state is ready to take action, contact us at Citizens for Sound Money. Together, we can make sound money a reality across the nation.
The Time for Action is Now
The U.S. is at a crossroads. Inflation is eroding wealth, debt is spiraling out of control, and the economy is cracking under the weight of bad policy. Trump has the opportunity—and the responsibility—to address these challenges on day one. But lasting change will require action at every level, from federal reforms to state-level initiatives.
At Citizens for Sound Money, we’re ready to help lead the charge. If you’re tired of manipulated metrics and empty promises, now is the time to act. Share this article, demand real solutions, and join the fight for sound money.
Call to Action
Here’s what you can do:
- Support Sound Money Legislation: Contact your state representatives and urge them to adopt C4SM’s model bills.
- Invest in Gold and Silver: Protect your wealth with assets that hold value during inflationary periods.
- Stay Informed: Follow alternative data sources like ShadowStats to see the real economic picture.
The truth is out there. Let’s make sure everyone knows it.
2 Comments
Do you have a contact in Kentucky yet? I want to see what I can do.
Steve
Hey Steve,
We do not have a contact for the Sound Money Act in Kentucky. Feel free to contact me at ddiaz@citizens4soundmoney.org and we’ll see what we can do in Kentucky to make gold and silver legal tender.
Daniel