Inflationary Prices in a Deflationary environment? Why U.S Dollars Will Be good for some and devastating for others – January 28, 2021,

When it comes to the 2021 economy, it’s important to comprehend that the real economy is deflationary, however, the central banks of the world, as well as overleveraged governments want to give you the WEALTH EFFECT of inflation.

I’ve written in the past why I prefer fiat money of a Gold Standard, primarily because 95% of the world are money morons and would rather the wealth effect over the reality of what a deflationary means to their lives. As an example, the minimum wage law gives a wealth effect, but what the minimum wage really does is it makes the cost of living higher for everyone.

Now, if you have financial education, you can see the minimum wage as an opportunity as you can avoid being a wage earner altogether and become a private contractor or if you’re fortunate enough to have a family you can start a family business and avoid the minimum wage altogether.

But if you’re a money moron, you’d prefer to imagine the wealth effect the minimum wage brings and you’ll actively look for an employer willing to pay you a wage you’d otherwise never earn without experience in a market economy. The government creates inflationary prices and inflationary wages via regulatory laws like the minimum wage, the government also creates a wealth effect by creating the illusion of social security.

All of these government welfare programs are creating artificial inflation now that the future will have to pay for. Now, obviously, eventually, this pyramid system fails, but when t does fail, the only losers are the people that didn’t recognize it for what it was all along.

Because the wealth effect does allow those that comprehend what’s going on to accumulate assets, now, the reality of the situation is that physical assets shouldn’t be what you’re trying to accumulate, what you should be accumulating is the knowledge that will serve you when this system fails.

Throughout history, people during periods of desperation seek out easy answers and this often will result in dictators confiscating private property and attempting to create enemies or villains that need to be destroyed. To prepare for this you should be smart enough to know when and how to blend in.

In many Arab countries, the richest members of society dress in the exact same manner as the poorest people in the society. You’d never know who is who, what separates most of the people when they look at act the same is what they know about generating wealth.

The number one way to create real inflation is innovation, innovations that the government can’t steal or redistribute often to voters, like your knowledge of money as an example will help you profit during deflationary times. During the supposed great depression, a lot of people were getting rich, the problem during the great deflation, was that the government was unsuccessful in creating a wealth effect, primarily because there was a Gold Standard and just like today, there were a lot of money morons, who wanted unearned benefits and entitlements.

Marco Bragadino was a Venetian confidence man who claimed to be an alchemist, Marco Bragadino is an inspiration for most politicians, He convinced the government of Venice to finance his research into producing gold from base metals, in the modern era, Marco Bragadino would be a central banker and the governments of today would mirror the governments of Venice.

Nothing changes, only technology, why work hard when someone else can do the hard work for me, right? That’s often how money morons think and that’s why if you’re smart enough you can use the U.S dollar to enrich yourself by simply recognizing that where deflation will be and how you can benefit from inflation. In simple easy to understand terms, expect inflation to occur wherever the government will be involved in most and position yourself be the beneficiary of where inflation will be going.

As an example, during the covid-19 lockdown, obviously, video game sales would go up, right? So all of a sudden GameStop which is nothing more than an Electronics retail company saw its stock soar, now common sense would tell you that most people are money morons and instead of educating themselves during a deflationary cycle, they’d instead prefer to entertain themselves.

Now, when many of these retail buyers are punished for financially for not benefiting from GameStop, they will turn to the modern-day Marco Bragadino’s to give them a wealth effect, meanwhile, the people who invest in GameStop would have long taken their profits to invest in more things that will be inflating during deflationary periods.

You can’t cure stupid, so don’t try, focus on protecting yourself and your family! Let the confidence-men tell people the sweet little lies their hearts desire!

Interesting times ahead!