How to avoid inflation

All the articles about inflation are so incorrect.

  1. Central bank causes inflation by creating more money and lending to gov’t. They know exactly how much inflation there will be because they create the money. Anyone can search for M3 Federal Reserve to see the increase in the money circulating.
  2. This is why many of the top banks/investment banks increased starting salaries by THIRTY percent. 30 ! They know the value of the money has declined about 25%.
  3. To avoid inflation, at least some of it, simply do not store any wealth in the US dollar. Own any stock. Any investment. Any crypto. Any real estate. Doesn’t matter. The dollar is sinking, so limit your exposure. Do you own the Turkish Lira which has decline 50% this year? No. See that’s how you avoid inflation.
  4. Now, your salary. Well that has declined 20%. The only thing to do here is to generate discussion at your company about the M3 federal reserve chart or any price chart of a single commodity to show that things are amiss and the value of the salary has declined. The company needs to do TWO things – (1) raise their prices and (2) raise internal salaries. Just as the banks note above have done.

We pass around FedReserve units, not dollars.

The term ‘dollar’ used to mean a one ounce silver coin. Then it meant a silver or gold coin. Then it just meant a gold coin. Now it means nothing. When Nixon took us off the gold standard, what he really did was steal all the real money – the gold – that were using as money. Biggest heist in history? Possibly. From good old sweet nice Uncle Sam (yeah right).

Think bitcoin is nothing, well so is the US ‘dollar’. It’s not actually a dollar. It’s nothing.

Why did they do this? Because they can create ‘nothing’ anytime they want.

I just don’t want to call it a dollar, because it gives credibility to something that is nothing. Maybe even bitcoin shouldn’t have the word ‘coin’ in the term, since it’s not a coin.

I’m calling them FedReserve units.

Dear Journalists: I want to be your advisor on inflation!

I would like to be your resource on inflation.

What is the quantity of money circulating? What has been the annual change? 
THESE ARE THE MOST IMPORTANT QUESTIONS FOR THE ECONOMY 
And no one reports on it. Because of a conspiracy or because I’m not reaching journalists. Let’s go with the latter. 

Here is a Fed Reserve chart of the increase in the quantity of money (please don’t call it the money supply). Notice the hockey stick rise on the right. A 33% increase!

In Jan 2020, there were 15 trillion dollars circulating. 
In June 2021, there are now 20 trillion dollars circulating.
In just 18 months, the banks increased the quantity of money by 33% !!!
This means the value of the dollar will fall by about 33% (all other things being equal).
And consequently prices will rise by about 33%. Not 5%, not 10%, but 33%. 
Want a hot stock tip? By options that bet the stock market (which is a price) will rise 30%. 

And the gov’t just passed a bill for another one trillion of NEW money and there are plans for another 3.5 trillion of new money. We’re going to be looking at 50% increase in prices over three years. So sad. America was such a nice place for so long. 

Please, please please write one article about this massive, unprecedented increase in the quantity of money and how it will lead to rampant price increases and lower purchasing power for our salaries. This is why the big banks just increased starting salaries by 30%! They know what’s happening to the dollar. And they’re protecting their own. 

A dollar is not a green piece of paper. It’s a one-ounce silver coin.

What you think is a dollar, isn’t a dollar. That green piece of paper in your wallet is a note. A Federal Reserve note.

What’s a note? It’s a promissory note. What’s a promissory note? It’s an IOU.

You’re holding a promise from the Federal Reserve to pay you a dollar.

What’s a dollar? A dollar is a one-ounce silver coin. They used to be called Thalers for the German region where they were once minted. Thaler became ‘dollar’ in English.

That green piece of paper is a promise to pay you a one-ounce silver coin. But really it’s not even that. Because Federal Reserve won’t ever pay you that silver dollar. So it’s really just a promise to do nothing.

We pass around Federal Reserve promises (to do nothing) as money and the term ‘dollar’ in this case is just a measurement of the buying power of that note.

If you think bitcoin is odd, I think you’ll see it’s less odd than federal reserve promises (to do nothing).

A one-ounce silver coin is currently worth 25 federal reserve dollars. This means that since the inception of federal reserve, the value of the federal reserve promises/notes has decreased by 96%! They used to promise to pay you the equivalent of 25 dollars, whereas now they promise to pay you one dollar.

I know this might seem confusing, but the point is that if you had a federal reserve note for one-dollar in 1913., you had actually 25 of today’s federal reserve dollars. Now you have one of those federal reserve dollars.

And this is why the system was created. To take your wealth. Every time they create more notes/promises, they take the value of your notes/promises. It’s like stock fraud where a company issues more stock but does not provide more stock to existing stockholders.

The solution is to allow people to use anything they want as money.

New spending is a new tax

The new “Save America” $1.9T spending bill is also a $1.9T tax (as in an immediate tax). Why? One, the U.S. government is already over budget so it must “borrow” money from Federal Reserve. Two, Federal Reserve does not have any funds, as I’ve stated, and Federal Reserve only creates money for loans. The value of the new $1.9T dollars comes from the dollars everyone has in their bank accounts. It’s as if you own stock in a company, and the company issues more stock. Your stock is worth less.

So the government, in essence, just passed a $1.9 Trillion tax. You’ll notice the impact gradually over the next months as prices rise because your dollars — your paycheck — are now worth less.

Is it a “Save America” bill? Well maybe for part of America, the unions with squandered pension funds, over-budget blue states that shut down their economies to increase the change of ousting Trump, and less-needed transit systems, that will get most of the money.

Note, this tax is not like others you can see on paper when you pay them. This tax is pulled out of the money you have in your bank account — a much more effective and stealth system. You have the same amount of money, but it’s worth less.

You made $100,000 on your home sale. Are you richer?

2010 - You bought a home for $100,000 and your favorite sandwich costs $5.

10 years later…

2020 - You sell the home for $200,000 and your fav sandwich costs $10.

(1) Did you make any money?
(2) Did you increase your wealth? Are you richer?

Answers:
(1) Yes
(2) No

2010 - $100,000 is worth 20,000 sandwiches ($5/each)
2020 - $200,000 is worth 20,000 sandwiches ($10/each)

You made $100,000 dollars so you made 100,000 more money/dollars.
But you cannot buy more sandwiches. Your money still buys the same number of sandwiches: 20,000 sandwiches. Your wealth did not increase.

But you actually reduced your wealth because the gov't will tax you at maybe 20% on the dollar profit.
Your dollar profit is $100,000, which means you pay $20,000 in taxes. You're left with $180,000 which can buy 18,000 sandwiches.

Your wealth was reduced by 2,000 sandwiches, even though you had a dollar profit (after taxes) of $80,000.

It's the consequences of inflation (devaluation of the dollar).

Postage stamps to cost 10 percent more, due to lower-value dollar

The dollar-price for a first-class postage stamp will rise 10 percent next year! That means the dollar will be worth 10 percent less than in stamps. If the dollar is worth 10 percent less, will thou get a 10 percent salary increase? Thy employer is paying out dollars that will be worth 10 percent less, at least in stamps.

Of course if thou uses something other than dollars as a store of value, then the dollar-price may not be important.

A headline from AL.com, says, “Stamps set for largest-ever price increase in January 2019”. It may be the largest increase in cents, but is it the largest percentage increase? No. Later, the journalist reveals that the 1991 increase was 16 percent.

As the dollar continues to be debased/diluted, the net increases will be larger, but the percentages may not. As this continues, at some point, the price of the stamp will rise from $1.00 to $1.10, a whopping eight cent increase, but really just an eight percent rise.

Similar journalistic shenanigans occurs with stock market rises and falls. A 300 point increase or decrease sounds like a lot until the article reveals it is a one percent change.

One must quickly acclimate to the new larger numbers tossed around or focus on percentage changes.

Still, the postage stamp price is going up 10 percent. That is quite a jump. The rampant increase in dollars during the past five to 10 years is finally hitting us, hard.

What’s the solution, store thy wealth in non-dollar assets. Before a purchase, convert into dollars.