Hey Jessavers
I've lived my entire life under an inflationary monetary policy or let me put it this way we all have lived under it, even on a gold standard as more gold gets mined, but it was set.
Under a fiat fake inflation monetary system, things started to get out of wack pretty fast. Manipulating any currency through interest rates, debt, and new inflation at will is always going to be a balancing act that requires less self-serving ideals.
Unfortunately, the monetary policy today is a Molotov cocktail that is aimed at the poor and middle class. It may have started slow, but as each decade passes, it speeds up faster and faster. The exponential growth of inflation doesn't allow us to slow down as we need cheaper currency to service the issued debt in a competitive race to devalue the currency as fast as possible without people losing confidence.
The communist creeping closer
As you can see from the narrative of the federal reserve targetting above 2% inflation each year in one of the biggest market cap economies in the world, they keep moving the goalposts slowly. They know whats going on but need to manage expectations, so the rest of us don't pull what the Romans did and refuse to accept a devalued currency.
Things aren't getting expensive; you're getting poorer
We live in a world of technological abundance, we've been able to create more for cheaper costs, and it continues to go down. No business goes into business, thinking we can't do this cheaper and faster to generate a profit. In fact, prices should be falling year on year, but since we measure things in a currency backed by debt, it needs to go up to pay back the debt.
Inflation needs to be created, to keep interest rates low and inflate prices of everything. The more expensive things are, the easier it is to pay back the nominal debt value.
The savings you are stolen through inflation and given to these borrowers to return capital to debt holders. An inflationary monetary policy of THIS KIND trickles up at its most effective.
No one wants high prices
For the average consumer, we don't want high prices, the lower prices, the more we can afford with our money. The more we can afford, the better our standard of living. The better the standard of living, the less you need to work to maintain it. The less you need to work, the more time you have to enjoy yourself.
High prices though inflation is a thief of time, and people don't realise it. We're all working harder and trying to keep up with inflation but something that can artificially be increased you're never going to outwork it, no matter how much you earn or save in that currency.
Labour and selling your time has a ceiling, and once you reach it, you will only see yourself robbed more and more by inflation in a losing game.
Embracing high prices
Since we're not going to be leaving an inflationary monetary policy backed by debt any time soon, you need to get out of cash and into something that benefits from high prices. Assets like precious metals, like Bitcoin, stocks and real estate will continue to rise as long as we keep pumping inflation into the economy. An asset that absorbs the new inflation seems to do well as it doesn't seem to be going into production, which is where it should go. It's an unfortunate situation, but doing so will somewhat protect your savings.
We cannot change the policies we can only get on the right side of it. Yes, it's going to hurt many people who don't get on the right side of it, but for me, I cannot do anything about that, I can only protect myself, which is what I am doing.
I also share this information freely hoping others will do the same and protect themselves, but as I see from daily life people don't seem to care and will be willing to accept anything the government tells them, even things that hurt them.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
Let's connect
If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase
| Browse & Earn Crypto | Stack Sats For Free | Earn Interest On Crypto |
|---|---|---|