There is Only One Way to Lower the Cost of Goods

I wanted to clarify my thoughts on the buying power of the dollar discussed in the previous post.

The purchasing power of money will always decline and that’s the nature of it. The only way to keep pace with inflation is to invest money into real estate, stocks, collectibles. The people who always get left behind are those without means to invest, stagnant wages barely keeping pace with the rise in prices. I hear people talk about solutions to this problem and pretending that Trump, somehow, will be able to fix it. He cannot.

The only way to reduce the price of things is through massive deflation. In order to achieve deflation, we’d need a Great Depression styled collapse in the banks and employment markets, creating a scarcity of money which in turn would increase the value of your money. The problem with periods of deflation is that people don’t have incomes to enjoy the cheap prices, akin to not having anywhere to go or drive during the COVID lockdowns to take advantage of the negative $36 crude prices.

If you want to fix the inflation problem the entire monetary system need to be uprooted and changed. The Fed would need to cease to exist and the dollar would need to be restructured and the ability to print greatly limited via backing it by assets and/or gold. Presently the dollar is a debenture, not really backed by anything other than the ‘full faith and credit’ of a corrupt government. You can see where this will eventually go; but we’re not going to willingly swallow these pills. The way prices will come down, eventually, will be through the destruction of markets, the global monetary system, and the government. The best hedges for this eventuality, which might take place during or after our lifetimes, is to own property, gold, $BTC.