What are your assets?
What are your liabilities?
In troubled times, and make no mistake, we are living in troubling times, you need to increase your assets and decrease your liabilities.
The latest American inflation number just came in; 8.5%. That’s the good news. Yes, 8.5% consumer inflation is the good news. The bad news is twofold.
First, it’s a lie. If inflation were calculated today using the same methodology as the 80s, inflation would be kissing 20%. If I remember my first year macroeconomics course (and there’s no guarantee that I do), this would put us in the orbit of hyperinflation.
Second, it’s the CPI, the Consumer Price Index that is showing 8.5% inflation. The PPI, the Producer Price Index is already into the double digits, something like 11 or 12%. Just a couple of months ago, when we were being lied to that the CPI was 4.9%, the PPI was (I think) 8.5%. So, grab your butts, by the summer, we’re likely to see an official inflation number in the double digits, with the real number coming in well above 20%.
Again, my memories of that 35 years ago macroeconomics course are fuzzy, and the difference between high inflation and hyperinflation is a matter of opinion, not definition, but 25% inflation? Yeah, that’s hyperinflation.
So, I’ll ask again. What are your assets, what are you liabilities?
Assets: stocks, bonds, IOUs, rental properties, precious metals, intellectual property…anything that generates revenue or holds value.
Liabilities: your residence, your car, any interest bearing loan, your possessions…anything that costs you money or loses value.
In short, you need to take a hard look at your life, and determine what costs you money, and what makes you money. Reduce the former, increase the latter.
We’re only on the front edges of the storm; economic troubles. They will be followed by hunger, and if the neocon dipshits who hold sway in the western democracies get their way, war.
Are you prepared?