America, Japan and other developed countries owes more than trillion dollar. They own these moneys to the savings and investment which we do. The thing is we do investment thinking it will help us in the future, we can get good returns from it and be wealthy. But at the same time, the countries print so much money that the value of money is going down.
PC: Pixabay.com
So in simple terms government borrows money from the public, print more money and the inflation rises and pay back the public with the cheaper money. So say you invested $100 10 years back, and your money has risen to $200 but the value of that $200 as of today is only $120. So basically in the last 10 years your money has risen only $20.
And that's why the countries whose debt is increasing is not worried because the savers as well as investors like us will pay it on the behalf of the government through the inflation. In the last 5 years alone the debt is increasing rapidly and at the same time if you see the inflation is rising like anything. So yeah there is a direct relation between the debt rising and the inflation.
And that's why Bitcoin is the future. Government is just increasing the debt today so that they can spend today. And that's why the rich is getting richer day by day and at the same time middle class is living paycheck to paycheck. To break this cycle we have to own the hard assets like Bitcoin, Gold, Real Estate and other assets which are not directly tied to the dollar or any other currencies.
Even investing in Stock Market is good because most of the money is flowing there. But if you are someone who is investing in FD, Bonds etc then you are the real loser.
This post was inspired by the post by Robert Kiyosaki.
