How Your Future is Being Stolen From You: Inflation, Rates and Fiat

GET RICH WITHOUT GIVING UP YOUR LIFE:

Inflation Solidifies the Wealthy Elite

Inflation: We’ve stated since early last year that the numbers are cooked and even-though they are saying it is 7.5% it is easily closer to 20%.

We’ll take an aggressive stance and say that anyone who believes 7.5% is simply not living life. Food, utilities and housing costs are all up much more than 7.5% for anyone who pays their own bills.

In simple terms, inflation means the rising cost of anything you buy. If you used to spend $100 a month on something, it will now cost you $107.5 in the following year. Scale this up and if you spend $100,000 a year in total expenses, it means next year you will be paying $107,500. All of these numbers are *after* taxes which means if you want to live the exact same life next year, you need to pull in 7.5% more money after taxes.

Doesn’t That Impact Everyone the Same? Nope! That’s the entire scam. While many may read the prior paragraph and say “well everyone rich and poor has to make 7.5% more!” it simply isn’t true. The reason for this is low-interest rate debt.

Simple Maths: You get the chance to borrow money at 3%. This means you can borrow say $100,000 at 3% for the next 30 years and lock in the interest rate. Sure you have to pay $3,000 a year, however, you can take that $100,000 and invest in anything that goes up with inflation over a 30-year timeframe (such as a home or even the stock market).

Inflation is 7.5% and your payments are 3.0% so if you simply buy an inflation hedge you *made* 4.5%. While you are borrowing money, the interest rate is so low that inflation gives you a bigger and bigger valuation. IE. You buy a home worth $1M US Token and it is now worth $1,075,000 while you paid only $30,000 in interest (probably less!)

Each year asset owners get wealthier relative to the middle class (even if you are a high earning person) since wealth is not the same as income. If you’re a rich institution you can borrow more money and get a lower rate as well (how the game works). While the rich guy feels like he’s getting ahead, the mega-corporations are getting even *further* ahead.

Need for a New Financial System

Until the creation of Bitcoin (post housing crisis), there has been no alternative to the current financial system. The ideal store of value would purchase the same amount of goods and services this year as it will in 10 years. While this is practically impossible as demand for goods and services go up and down (trendy products etc.) it should be a possibility for necessities: food, water, electricity and rent.

New Economic System: If you tried to exit the current financial system… there was no alternative. In fact, if you try to protest or crowdsource money in Canada they will even block you with no civil penalties!

Now? There is no excuse. You can use cryptocurrencies as an insurance policy against the constant money printing. If you think that governments will continue to print money and potentially take you out of the financial system, you need at least some insurance against that. If protecting your hard-earned money is not important to you then we don’t have time to convince you.

You don’t even need to believe in crypto to invest in it. Simply take a step back and look at how many users the industry has and ask yourself “Are users going to go up or down?” If you answered “up” then you’re forced to buy since the supply is capped. If you believe users of crypto will go *down* then you shouldn’t buy them (enjoy ze bugs!)

Keeping It Simple

Take a step back and ask yourself what the guiding principle was for every single good investment. It wasn’t “P/E ratio” it wasn’t “Value Investing it was the following: will more people use this?

When Google purchased YouTube they were laughed at. Now it does around $20B in annual revenue (SEC filing page 33) and they don’t even make the videos. They guessed correctly that more and more people would be watching videos and created a monopoly around it.

Back when Facebook bought WhatsApp and Instagram they were also laughed at. Once again, the herd was wrong. User growth exploded and the deals were a steal.

Up To You! We know the following: 1) inflation is higher than the interest rate that rich people pay; 2) we know that more restrictions are coming - see Canada - which means your account could be locked; 3) we know that the 94% of crypto buyers are the younger generation and the boomers currently control 53% of the wealth and 4) we know that governments are printing tons of money with no way to repay it and you don’t even get to vote on it!

Should you buy financial insurance? Your call anon.

#BANKSAREZEROS #Crypto #Inflation

[ccc]

All these bots in the comments are NGMI. Absolutely ridiculous.

[maxthevalue]

Awesome stuff. Good for people to self educate themselves about finance.

[cameronpoe]

Boomers are usually more apt to be generous as a generation.

[santiagosuarez]

Why is it better to have crypto if you could also have assets? Is it because gvmnt could take that away too?

[daneilpatro]

Hello

I read somewhere,
Crypto is like - you will own nothing and you'll be happy

(No physical possessions like land or gold)

Can you please counter reply