One-Way TICKET: Inflation COMING!
It’s kind of hard to imagine how a country, which makes up less than 5% of the world’s population, has been able to become the largest economy on the planet, but also the biggest debtor nation in history.
The U.S. has a population of 326 million people, compared to over 7.6 billion human beings globally.
That’s 4.2% of demographics, but in terms of wealth, the U.S. is still No.1.
The sheer power of the nation, which was built on the foundations of a free market society, has unleashed unprecedented wealth, but in recent decades, growth has stalled, while globalization made the U.S. less competitive and debts have mounted.
Like any militaristic power of the ancient world and the middle ages, the U.S. has presence in over 180 countries, but its defense expenditures aren’t their largest concern, as it stands.
The promises made to its retirees and to its lower-income classes have become an enormous, uncalculated mistake. The size of the liabilities to the beneficiaries of Social Security, Medicare, Medicaid, food stamps, disability, veterans, government pensioners, and unemployed is well above the tax-collecting ability of the Federal government, so they borrow, relentlessly.
The world’s largest and most vibrant economy is also home to the world’s most inefficient government – that’s a massive problem.
In recent years, I’ve seen the wealth gap in America become more visible than ever – the rich and the poor have never been this far apart. On top of that, out of a population of over 326 million, there are only 100 million taxpayers, which means that all the burdens of 100% of the people reside on the shoulders of only 33% of the population.
We’ve been, for the most part, living in an inflation-free environment for many years. Sure, tuition, healthcare, and rents have gone up considerably, but many other items have not changed meaningfully in price and even dropped in price, while their quality has increased tremendously.
This period is largely behind us. I expect the roosters to come home to roost. Debt burdens for the Federal government will force them to cut their obligations or entitlements. This translates to either lowering the benefits paid or postponing the age of eligibility to these programs.
Another solution is to run even bigger deficits and erode the purchasing power of the USD even more noticeably than today.
In either case, while the free market economy, made up of global leaders, such as Microsoft, Apple, Amazon, Intel, Coca Cola, Wal-Mart, Johnson & Johnson, and many other dominating U.S. brands, keep making their shareholders wealthy and our society more efficient, the government is creating a shit-storm, which will impact each and every one of us.
You see, at the end of the day, most transact in U.S. Dollars and save in fiat currencies.
If you want to save yourself from the insidious impact of inflation on your savings and from the dangers of a loss of confidence in the all-mighty buck, you should diversify both to precious metals and cryptocurrencies.
Personally, I keep right around 24 months of living expenses in USD terms, set aside in gold and silver coins.
Then, on top of that, I hold the leading coins for daily usage away from the trading platforms, for safekeeping: BTC, DASH, LTC, XMR, and ZEC. These are coins I hold because they can become legitimate mediums of exchange someday soon.
Above all that, I make sure that my portfolio is also aligned with cash flowing opportunities, such as private lending platforms online and rental real estate.
Diversification is key.