A Word Of Warning On Preserving Your Wealth

At the risk of sounding repetitious, I’m issuing this brief warning to SurvivalBlog readers:

The average American income is not keeping pace with inflation. This chart says it all. Take a look at that chart. The brief positive blip in 2020 is attributable to the combined effect of people reducing their expenses by staying at home and receiving the veritable helicopter drop of economic stimulus checks. But since then, we’ve been collectively blindsided by inflation.

Do not expect inflation to get back under 5% for a decade or more. The Federal Reserve”s recent credit tightening has been insufficient to stem the flood of inflation. If the U.S. Dollar becomes disfavored on the Forex, then we could see a flip-over into mass inflation. All that it would take is a net outflow of foreign investment, to trigger that.

Here is a statistic that few folks have ever read: As of 2019, there were more than $14 billion in $100 Dollar bills in circulation, mostly overseas. And in fact, there are now more $100 bills in circulation than there are $1 bills. A quote from the IMF report:

“According to the Federal Reserve Bank of Chicago, nearly 80 percent of $100 bills—and more than 60 percent of all US bills—are overseas, up from roughly 30 percent in 1980. “

This is attributable to the cash hoards that are held by narcotraffickers and good old-fashioned “mattress money” consistently held by the citizens of more than 200 nations.  For more than 70 years, foreigners have recognized the U.S. Dollar as a safe store of value, even as their own national currencies suffered inflation.

Robbery in Slow Motion

Remember: Inflation in effect is a hidden form of taxation. We are being robbed, folks. It used to be robbery in slow motion. But now, it has become more blatantly expeditious.

If you haven’t done so already, then start shifting part of your liquid net worth out of Dollars and into durable tangibles–both productive farmland or ranchland and compact high-demand items that are suitable for barter. I lean toward silver coins and “seven-six-two” – JWR