Left-Wing Politics With a Fiat Monetary System equates to Price INFLATION and economic DEFLATION: Is Rampant price Inflation a sign to become a dividend investor? – November 30, 2021

We are currently in an era in which there are open discussions about having Central Bank Digital Currencies (CBDC), now for many of us who study the teachings of Ludwig von Mises, we can clearly see why CBDC’s won’t work. Some people who imagine CBDC’s imagine the monitoring of digital transactions as a means for central planners to know how to deploy capital, but I think people who like the idea of CBDC’s forget the criminal elements and nefarious actors, who will inevitably find chinks in the armor and will inevitably, possibly intentionally become INEFFICIENT as a means to have central planners deploy capital their way.

If you imagine CBDC’s a cure, I think you ignore why Big Businesses welcome regulations on the economy in the modern era. The only thing big businesses don’t like are labour unions because labor unions deny them the flexibility of being PRODUCTIVE with resources as labor unions imagine end goal is to SOCIALISE a profit-driven enterprise.

Even the Chinese Communist Party(CCP) doesn’t allow labor unions in their economy, it always makes me laugh when people ask why China is kicking America’s ass economically? The answer is simple, the socialists in America, regulate everything, if you own a business in America, not only do you have to worry about labor unions, you have to worry about Left-Wing politics, this is, of course, is why American businesses end up in China. In China there’s actually less government, the CCP merely wants to dominate the globe and they’re narrowly focused on achieving that goal.

Politicians don’t know it yet, but more and more people are realizing how truly dumb many of these politicians are. Most politicians don’t understand that a lot of younger people are using the internet for educational purposes. Sure not all are, but enough that, future generations are going to be 10x smarter than previous generations, and what this equates to is the world being reshaped while inflation is running rampant.

Bitcoin as an example is for some people a way to get ahead of inflation. ow, if you were to ask me what I think of Bitcoin, I’d tell you its play on the fiat U.S dollar, there would be no means to value Bitcoin without fiat money. Nobody in their right mind would exchange Gold and Silver for Bitcoin if Gold and Silver were LEGALLY allowed to be used as money.

As we know rule by fiat money is a decree made by governments that people MUST use a currency to purchase things. But it’s not like the world needs fiat money, governments need fiat money, the world would still be fine WITHOUT fiat money, Gold and Silver have been money for years, I even argue that there could be an Oil-based currency.

When most people purchase a Canadian fiat dollar, they imagine that Canadian dollar to be linked with the natural resources in Canada and Canada’s EFFICIENT ability to extract those resources for a profit. So if governments would be imagined to be failures any money system could replace the fiat monstrosity that exists today and actually the only thing that would prevent it, is the ignorance of people who imagine that the world can’t function without government money.

The only problem with Gold and Silver money system are the people who will want SOMETHING FOR NOTHING. The welfare state is why we have fiat money, the demand for fiat money comes from lazy people, thieves, con-artists. Some of us imagine that laziness is a modern problem, this is a lie, laziness has existed since the dawn of time.

What the real problem is, is that humans haven’t figured out how to EVOLVE democracy to cater to a market economy. Democracy is an auctioning off of other peoples’ stuff. That guy over there is rich and I deserve a portion of his wealth, that’s political democracy and it’s the main reason why financial education is committed from public schools.

Prior to education being CENTRALIZED, you went to the school of hard Knox and the reality of the school of Hard Knox is that you had to find your way into the marketplace or you didn’t eat. Sounds cold right? Well, if a person is on welfare while others are working to provide said welfare recipient with resources is the welfare recipient not being cruel?

How to combat Government created Price inflation

Welfare or democratic socialism leads to price inflation and in order to combat price inflation, you MUST make sure you have some form of POSITIVE cash flow coming in your direction from as many sources as possible. One of those sources is dividends, yes dividends paid in fiat dollars. Some of us imagine that austerity measures are inevitable, others imagine inflation is inevitable, but positive cash flow along with the skills to pay the bills is all you need to survive when inflation destroys the money supply.

When the standard of living declines, and the money is debased, you’ll have to start imagining the world without fiat money. It’s a good idea to study countries like Venezuela and Zimbabwe and how some people are able to flourish even with a worthless currency. When a currency becomes worthless, you must find your way towards the RESOURCES.

It’s not about the money it’s about what the money can buy and even when money becomes worthless, human ingenuity and the ability to create things becomes the new wealth and it’s at this point that you see how powerless governments are. Because like the white farmers in Zimbabwe or South Africa, you can’t replace the knowledge of how to be productive with government propaganda.

A protestor is a protester, they’re pro-something, but protestors are usually not innovative people, because if you’re innovative you wouldn’t waste time protesting, you should be able to PROFIT from this world if you’re an innovative person. It’s the non-innovative people who need to steal in order to become profitable.

How this relates to dividend investing is that a company that can pay a dividend is showing you that it has the ability to generate PROFITS. Now with public companies, you do have the ability to look at the numbers and at the very least imagine how this company is able to pay you a dividend. Maybe the dividend-paying company owns the land that Amazon Fulfillment centers occupy? Well based on where a lot of money is going, that could equate to that company being able to pay you a dividend even if the fiat currency is losing value.

In closing one of the reasons I recommend dividend investing is because it puts you in the right frame of mind. You don’t only want to purchase things for the hope of capital appreciation because capital appreciation is less frequent without fiat money, you want to purchase or work with companies or individuals who are profitable based on simple math.

Governments are indebted, most people invest in governments because governments RULE BY FIAT and people put their trust that this will continue. For me, when any entity can’t make a profit, I don’t want to make it a habit of investing in it, if the government is deeply in debt, that’s a sign to me that I should invest in Gold and Silver and profitable business relations. Because although the government might not fail in my lifetime, it’s headed for failure, and when institutions fail what’s left is your knowledge and how you communicate with other people, meaning your relationship skills.

If you’re unaware of how wealth is created you won’t know what to do or where to go if the only system you know of fails. The person or company that can pay you a dividend is promoting to you that their company is profitable. Once you understand the numbers or understand the basics of running a business you’ll be able to look at the numbers and see if this dividend-paying entity is sustainable.

Without government as an example, real estate prices wouldn’t be going up, most would be coming down because real estate has maintenance-related costs, that have their own expenses even without government. So just because someone buys a house that house isn’t necessarily profitable, in fact it might be a liability and if a person can’t borrow against their house or sell their house for more than it cost them to build and/or maintain, in a world without fiat money, that house would be a money pit.

In fact for many, renting an apartment is beneficial because as a tenant possibly an aging tenant a person could avoid paying certain maintenance costs they have to pay as a homeowner. Now, when the government debases the money supply instead of having to work to pay to fix their house, a person could instead borrow money against their home and use that free fiat money to pay someone to fix it and on top of that be assured that in the future they can sell their home for a fiat money profit.

The aforementioned paragraph is an example of how fiat money distorts the economy and makes people imagine they’re smarter than they really are. With dividend or cash flow investing, making money is slower and you’d have to time the market because it’s a MARKET economy, not a centrally planned economy in which central banks try to make sure politicians don’t look like idiots.

Rampant inflation is a sign that a centrally planned economy is headed for destruction. Now, solving rampant inflation is easy, normalize interest rates, but most voters in a democracy will vote to keep the party going, so this is where the delay comes in, this is why you’ll want to have cash flow, because this delay of austerity measures could take decades, during these decades the economy will be deflating but prices might be increasing.

Fiat money allows governments to hide DEFLATION. Economic and financial deflation are the same thing under a Gold and Silver standard. When money is attached to commodities money and economics are the same, but when you have a fiat money supply, money is detached from the real economy as the government ruling by decree look to save or protect entities they deem as essential from failure.

The hope fr the central planners is that their intervention will inject confidence in the markets and in time things will return to normal or they’ll be a new acceptable normal. This new acceptable normal typically means that a segment of the population will be impoverished to save the section of the population the government wanted to save from failure.

Getting paid dividends or cash flow puts you in a good position to profit from the stupidity of democratic socialism.

Interesting times ahead!