The Inflation Problem

The Inflation Problem!

This tax the rich and the wealth thing.

Just let's just run through a basic situation. Forget about high wealth. Let's just say a thousand pounds,you got a thousand pounds in your bank account. It's there, you can see the £1000. If you do nothing with it, it will stay in your account as 1 0 0 0. If I leave it a year, it will still say 1 0 0 0. But the amount I can buy with that £1000 is less than the previous year. And another year, I leave it there. It still says £1,000 but that year, I can buy even less than the year before that. Because that’s #inflation.

The more money that they introduce into the economy, it might say a thousand pounds, but it's not worth the same thousand pounds it was the year prior, and the year prior to that, and the year prior to that. Because the value of that £1,000 is eroding over time.

So if you got a million, the same applies. If you got 10 million, the same applies. So what do you do?

You don't want that to happen because you've managed to achieve that. So you wanna try and lock up that value as best you can. That’s why housing is so expensive. Our basic need for shelter, our security. People sussed out that if they put it in real estate and housing, it increases in value over time. Because everyone’s figured that one out, that if you put it in the house, it’s actually gonna hedge against the inflation.

So you're locking away your productivity and value in something that's going to appreciate, because the government and the banks are debasing your money.

So you are incentivised to do that. Otherwise, if you don't, you just have to keep on that treadmill, running faster just to stay in the same position, in the same spot. And that’s the system’s failure. That’s the system’s flaw.

You got to ask yourself, whose fault is it?

Is it the people who are trying to secure their wealth?

Or is it the constant debasement of our money by central planners, central banks, banks, printing money, giving out debt to other people that have to work harder for longer to pay it back? That’s the real problem?

Stay Curious!

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