Economics/Class Relations

One Thing We Must Remember about Inflation

What you can do to protect yourself in these uncertain times! Published 10/28/22

One of the more prominent self-evident truths when it comes to the government is that they will blame everyone and everything for what goes wrong except themselves.

Inflation is one of the most sinister plagues that can ail any society. It is the hidden taxation that hurts us all, especially the poor. So of course, when turmoil is being inflicted on people, and fixing the problem is out of their control, they will look for any solutions they can while also looking for who they can point their fingers at.

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So what solutions does our beloved mainstream media offer?

And who do they want us to blame?

These “solutions” are really just sick and twisted means towards the end of crushing our human souls, and while corporations do not give a damn about society (and many of them are in bed with the government) they themselves are not to be blamed for inflation. It should also be noted that implementing price controls would just make our economic situation worse.

All these are lies put forward by the mainstream media who are covering up who is really to blame for inflation: the government. It is their endless money printing, provided by the Federal Reserve, that is the cause for inflation.

We have been taught in public schools and universities that inflation simply means a rise in prices. If that were true, then yes the corporations would be the ones to blame. However, this is another flat out lie that is trumpeted by the mainstream media as well in order to play cover for the government. Rather than inflation being caused by higher prices, higher prices are caused by inflation. This is because money printing causes an expansion in the money supply. This expansion causes all the money that is already in circulation to lose its value, which then causes the demand for more money in order to buy anything.

Inflation only benefits the government themselves, who use the newly printed money to tackle their endless endeavors that require endless spending. It also gives them a useful scapegoat to hide behind and blame all kinds of issues on, as well as a boogeyman to create senseless laws and regulations around.

With all this being understood, there is one thing that should be made clear about inflation: it is not our fault. Therefore, why should we pay the price? There are measures we can take to protect ourselves from the threats of inflation, and unlike the media’s solutions, none of these require making ourselves worse off.

In terms of what we can do financially, economists such as Jerome F. Smith and Jim Rickards preach investing in such a way that ensures capital preservation. This means turning your fiat money into tangible assets. These assets of course include precious metals, mainly gold and silver because those have proven to be sound money throughout history; and real estate, especially residential real estate  because it has skyrocketed due to Coronavirus hysteria, as opposed to commercial real estate which has been falling because of the same hysteria. However these assets also include collectibles, such as fine art, antiques, numismatic coins, jewelry, etc. Jerome F. Smith does offer a warning about collectibles in The Coming Currency Collapse: “it is essential that one be an expert, or at least have reliable expert advice, in selecting and accumulating collectibles. Further, most collectibles are not liquid, i.e., it may be impossible to find a buyer when you want to sell.”

Another asset would be cash, which may shock some readers. This is mainly because of the war on cash. On this Jim Rickards writes in The New Case For Gold:  “An all-digital system sets up the economy for negative interest rates. The government could try to force people to spend money by confiscating part of whatever is left in a bank account under the guise of a ‘negative’ interest rate. Instead of the bank paying you interest, they take it out of your account. Cash is an easy way to defeat negative interest rates. Anyone holding cash would have the same amount at the end of every time period and would not be subject to negative rates. Eliminating cash and forcing everyone into an all-digital system is the first step toward negative rates….

The war on cash is more than just a prelude to negative interest rates. Eliminating cash also makes it easier to force bail-ins, confiscations, and account freezes. To lock down depositors’ money, it is helpful to herd everybody into one of a small number of megabanks (Citi, Wells Fargo, Chase, Bank of America, and a few others) that take orders from the U.S. government. Then the stage is set…People are accepting digital substitutes for paper currency because it’s more convenient. Only later, when paper money is completely out of circulation, will the government start to confiscate the digital wealth. There will be no recourse to cash at that point. People won’t notice until it’s too late.”

Cash can also be utilized in some handy and beneficial ways. On this Rickards writes in The New Great Depression: “In a deflationary world, other asset classes are likely to be losing value, while cash can yield in the low single digits in real terms. That’s a winning allocation.

Another underrated advantage of cash is optionality. When you make an investment, it may work or it may not, but either way there is a cost to exit if you want to reallocate your assets…cash has no exit fee…cash is your call option on every asset class in the world…

Finally, cash reduces your overall portfolio volatility. The nominal value of cash is unchanged in all states of the world. A diversified portfolio contains volatile assets, including stocks, gold, and bonds. Cash reduces portfolio volatility compared with the volatility of those separate asset classes. Functionally, it’s the opposite of leverage, which increases portfolio volatility.”

In 1980, Jerome F. Smith even recommended turning US Fiat money into Swiss Francs as a way of capital preservation, due to how the Swiss Franc was performing against all other currencies in the world at the time as well as because of Sweden’s political stability. Currently, the strongest currency in the world is the Kuwaiti Dinar due to its involvement in the oil and gas market. However, it is not a very stable country in terms of politics. This is an investment option that deserves due diligence in regards to the research that goes into it. You want a currency that has good future prospects and belongs to a politically stable country, according to Smith.

Another avenue that needs to be taken as a means of protecting ourselves against inflation is embracing a lifestyle that will help keep us prospering during times of inflation. This means things like farming and growing food so we can ensure our food security and also have an in demand resource that could be sold or traded; being frugal with our money by purchasing items from thrift stores, garage sales, etc., so we can get the bang for our buck that we desperately need in times like these; knowing and practicing skills such as medical treatment, equipment repair, and even self defense. The reason for this is so we can be as self-sufficient as possible at all times and be prepared for whatever may happen to social stability due to high inflation; and even going out and building relationships as a means of creating a strong community or network of people you can call on in times of need. Not only is this beneficial in regards to protecting ourselves from disaster in general, it also helps create high trust within society, which makes a society healthier and more likely to prosper.

In short, we should adopt a sort of prepper mindset and apply it to our lives as a means of keeping our lives stable during uncertain times. Self-sufficiency allows us to be more free; and the more we do in regards to it, the more likely we are to be in charge of our own destiny during our time on earth.

While the days only seem to be getting darker and more dire, it is essential for both our lives and liberties that we hold onto hope. We can make our hope happen only by taking our lives into our own hands. If we don’t, we may suffer due to circumstances not created by us. Let us not become collateral damage at the hands of these fools in power. Instead, let us “ride the wave”, as Julius Evola says, and revolt against this modern world so full of lies and deceptions that cause chaos, both calculated and uncalculated, for us all.

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