The US dollar is going to collapse in the next few years. Yes, I suppose it could be argued that I am an “alarmist.” That’s fine as long as we should be alarmed.
So are you alarmed? Or, more importantly, is your financial planning disaster proof? It should be. Read on to learn why inflation is one of the biggest threats you’re money will have in the next few years.
If everyone had a million bucks, a million bucks wouldn’t be worth much. Major inflation would kick in, and the dollars would be worth less. Inflation makes your money worth less and less. There’s a reason penny candy doesn’t exist anymore.
Inflation is caused by a lot of stuff, but the biggest of inflation is the government printing more “dollars.” The way money gets printed is that the Federal Reserve “loans” money that doesn’t exist to banks. The more “loans” the Fed gives, the more money is printed.
Printed money from the government is literally pretend money. It doesn’t represent anything of value. The only reason dollars are “worth” anything is because there aren’t too many of them. If there are more dollars, then the dollars become worth less. There are about to be a bunch of “new” dollars.
What’s Happening Right Now
The Federal Reserve is lowering interest rates down to almost 0%. This means banks can get more “loans.” This means more pretend money is going to get printed…inflation. Note that a Fed “loan” is more dollars getting printed. Every new dollar that is printed lowers the value of the other dollars on some level.
In the past few months, the Federal Reserve has issued more new US “dollars” than the past 18 years combined. This, in and of itself, means you should get ready for major inflation. It’s coming.
Over the past few months, Bush has spent a trillion dollars to “help” the economy. A trillion dollars. Read that a couple of times.
Obama has already pledged at least another trillion dollars towards his economic “stimulus.” Read that again. Note that that’s just the stimulus… not his other policy ideas.
Obama also wants to increase the size of government almost exponentially, spending even more money. Health care, etc, etc. You know how it goes. Regardless of whether you agree with the policies or not, they require spending more money.
What Will You Do?
Inflation is going to happen. Inflation doesn’t care that we have a “rock star” for president. It’s coming. Are you ready? Make sure to subscribe below, as I’ll be writing more about what you can do to prepare against the inflation in the near future.