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Economy

Hyperinflation

AOC and 51 of her cohorts are pushing for the $2,000 checks to be a monthly event. Doing this will cost an astounding $10 trillion a year. This would be on top of the already massive $4 trillion Federal budget.

The amount of US dollars in existence is currently about $19 trillion. This would increase that amount by 50%. Having an additional $10 trillion in the system, most of which would be inserted directly into circulation like some kind of ghetto lottery, would be devastating to the dollar.

With the added stressors of rising petroleum prices and the increased minimum wage that is likely to pass within the next few weeks, we are likely to see a LARGE increase in prices across the entire economy. That will quickly be followed by the Fed moving to increase interest rates in an attempt to cool the economy. All of this adds up to bad, bad news for the US economy.

The policies that have already been put in place are bad enough, but increasing the US money supply by 50% means a straight up financial disaster. Even if the monthly checks don’t happen, there is some bad stuff coming down the road.

My wife and I discussed the situation this morning. The best defense at this point is to put your money in any vehicle that will insulate you from a falling US dollar. Stocks and bonds are a no go. In fact, this leaves only hard assets that have intrinsic value. In our minds that means precious metals or real estate.

I would suggest that anyone who is reading this take steps to secure your finances from the inflation that will happen.

3 replies on “Hyperinflation”

Whenever “the market,” writ large, is telling you to do something, because of external events, be they political events or economic/business events, you are likely to be better off doing the opposite, or, doing nothing, which, in itself, is an action.

These last few days of apparent chaos and turmoil are exactly what the Powers that Be and the Big Money rely upon, every single time, to facilitate whatever it is that they want to happen.

Yeah, I am concerned, too, about financial security, but, I have also seen this show before. The 1970s oil shock. Early 80s super-high interest rates. The October ’87 crash (which gave us “greed is good,” from the movie, “Wall Street,” which came out at exactly the same time). ’92 Clinton Healthcare, which tanked healthcare stocks. The dot-com bubble. The 2008 financial crisis. Seeing a pattern, here? Ever notice who always (yes, always) comes out on top? The Powers that Be and Big Money. In particular, the ruling elites and the globalist banksters. Like clockwork. There may a generational rotation in the names and professions of the key players (used to be bond traders and industrialists, now, it’s hedge funds and tech titans), due largely to changes in technology, but, otherwise, the story is the same.

There’s no beating this game. Only recognizing it and learning not to fight the tape (a reference to the old, paper ticker tapes that reported stock prices, in the days before Bloomberg terminals). Also, don’t fight the Fed. Stay away for the elephants. Whenever they move, they crush the ants.

A currency crisis has been an inevitability since at least 2008 and arguably earlier. Given the machinations that I have seen over the last year, I suspect that we are nearing that point.

You are correct that other assets like stocks and bonds are a no-go. It is also futile to try to diversify into assets denominated in other currencies as the rules in the US tightly restrict what we mere peasants can do.

And, I think precious metals are a fools errand. First, when the crisis strikes you will be making your target – meaning that you are going to risk your life for a thing. Second, it is not worth much for day-to-day transaction. I am aware of several who accumulate gold bars and coins. You cannot simply shave off parts of the bar for doughnut, and you are almost invariable going to get a lot less for the coins than it is worth.

Honestly, your best bet is to accumulate tools (like hand tools) and skills (like gardening) and to start operating like the crisis has already occurred. One of the best things that you could do for yourself is to make a garden. You would be surprised what you can make even in a very small space.

None: Full agreement about accumulating practical tools and skills. Command your own destiny. Plus, people pay to have stuff fixed, whether that stuff is a broken light fixture or a broken tooth.

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