By NOT saving money!
Savers are losers in this economy!
Let me explain:
- The rules of the game were changed in 1971 when President Nixon broke the Bretton Woods agreement.
- That’s what decoupled the US dollar from the gold standard!
- The rules of money changed when the US dollar ceased to be money (supported by gold) and became a debt.
- After 1971, savers became losers!
Here’s the depressing truth:
Millions of people still believe that wealth is created by saving money.
- Millions are trying to reduce their spending to save money, while the federal government is printing billions of dollars, destroying the purchasing power of savings!
Here’s how it works:
Have you heard of quantitative relief?
What about QE1, QE2, QE3?
When central banks create money out of nowhere, they call it “quantitative relief“.
Why is it called quantitativerelief?
It’s just a nickname for “print money“.
It sounds more complex and interesting. It is a fantastic way to deceive millions of people who will try to work harder and save even more, while this has terrible inflationary effects on the economy.
Fortunately, quantitative relief has temporarily ceased, but the result is this:
Your purchasing power decreases over time…. and it still falls very quickly!
- but…. I saved “millions”!
- Nice for you!
- Better start spending your money in invest !
- but…. I make interest on my investments!
- That is not good enough!
- Do your interest rate investments help you feel financially safer or not?
Most likely not!
To answer your question:
You need to invest in assets to protect your assets from the inflationary impact on your money!Assets that maintain their intrinsical value over time, such as real estate.
A car is NOT an asset because it loses value over time…. unless it’s a 1962 Ferrari 250 GTOthat sold for a record amount of ‘34.65 million dollars!
How is money made in the information age?Here’s what I wrote a few days ago: How can I get rich?