Tom Daney

The man who turned $100 into $100 billion just said the Fed is lying to you. The Federal Reserve has one sacred rule, every single year, they allow prices to rise 2%. They have run the entire global economy on this principle since 2012 and Buffett called it a compounding disaster. His exact words: "Once you start saying you're going to tolerate 2%, that compounds pretty dramatically over time." Buffett made the math brutally simple. If you are earning less than 2% on your money, you are not breaking even. You are going backwards every single day. Most Americans with a basic savings account are earning nowhere near 2%. The Fed calls this price stability while Buffett calls it a policy that punishes anyone responsible enough to save. Buffet wants a 0% inflation target which means prices stay flat and money holds its value but no major central bank on earth currently operates that way. The 2% rule was never born from science or rigorous research. It started in New Zealand in the 1980s, spread as a convenient benchmark, and eventually became untouchable global doctrine never seriously challenged, never put to a public vote. Meanwhile the Fed is not even holding their own floor. US inflation is running above target right now, with projections pointing higher through the rest of 2026. The bar they set keeps moving, and the people paying the price are the ones who saved. Buffett has been warning about this for decades but this time he went further. He said the banking system carries risks most people do not see, that fragility is hiding inside the financial structure, and that a currency the government permits to lose value every year is the foundation underneath all of it.