Before we crash into the wall that is marked with the warning-hyper inflation on the horizon and it’s effects on your savings.
According to Graham Stephen a well known real estate investor inflation has the following definition.
“This is the rate that products and services increase in price over time, lowering the VALUE of the money that we have today. It’s generally thought that the more money gets printed into our economy, the more we devalue the existing currency in circulation, and over time…the more dollars it costs to buy the same thing.”
He goes on to warn the consumer of the perils that await the faint-of- heart. He mentions,
“In MODERATION…. a STEADY, CONSISTENT inflation rate is generally seen as a healthy indicator of our economy, because people know what to expect, businesses can plan accordingly, and it’s slow enough that most of us won’t notice any major change day by day. That’s why the United States tries to aim for as close to 2% annual inflation rate as possible. The PROBLEM, however, is when inflation begins to eat away at the purchasing power of your money, FASTER than you’re able to make it…and, right now…WAGES simply can’t rise fast enough. On the ONE HAND: The Federal Reserve believes that the inflation we’re seeing is TRANSITIONARY, caused primarily by supply chain and shipping bottlenecks which TEMPORARILY increase our own costs…but, others believe that it’s a direct result of excessive spending and stimulus packages, leading us closer and closer to a point of no return..”
HMmm. Sounds scary. But, not so fast. We should have seen this coming. The rich have been exploiting the poor with low wages for as long as I have been alive. And, will continue to exploit the low-wage earners with higher prices when the wages are increased.
Remember this. Just because you wear a suit does not mean your not working in a coal mine. The company stove is digital now.