Mike Maloney's post on currency vs money is enlightening
1. There is inflation - rise in prices not because of unknown forces causing increase in cost of inputs. There is inflation because of rise in money supply, something beyond the control of producers (farmers, contractors, manufacturers) The goods absorb like a sponge the increase in money supply by way of higher prices.
2 Increase in money supply comes and initiated by the central bank of federal reserve system through various ways:
1. Printing of more paper currency
2. Pump priming, stimulus checks, ayuda
3. Quantitative easing - purchase by Central Banks of debt instruments from banks
4 Lowering of bank reserves - more money is made available for lending (which accounts for more than 90% of money created in the economy)
5. Lower tax rates tax exemptions
While this is seen as pro masses, this increases money supply in circulation Inflation is the inevitable aftermath.
3. Money is a store of value which remains constant inspite of passage of time Currency which has no basis for value eventually ends up being zero Even crypto has failed in this aspect as there is no real stuff of value to peg its prices on
4. The store of values can be in:
1 Precious metals like gold and silver
2 Real estate
3 Commodities which are in constant use: toothpaste, other well preserved foodstuff, soap
(all the stuff of survivalist)
Andrew Tobias was right in saying that household stuff are the stocks that you need to buy
4. Your own education, especially financial literacy
5. Inflation, or more currency in circulation means the value of your nest egg, your savings can be taken away without your consent. It is thievery at highest level
This post is doubtful as to whether insurance, ctd, stocks are real store of values. This post stayed away from a well known educational plan, which eventually closed shop
I am wondering why a US citizen is in a hurry to sell his inherited real property in the Philippines
