Hard Times

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Hard Times

Hard times are coming. Of this, I have absolutely no doubt. Some of you will justifiably say, “Man, what the hell are you talking about? Hard times are here!”

With unemployment actually running in the 20% range and some 40% of the population needing some type of subsidy from the government I have to agree, hard times are here.

Worse times are coming, though.

Inflation Is A Tax To Benefit Friends of Government

Industrialists, aka assholes masquerading as capitalists, love to talk about the wonders of free enterprise all the while funneling campaign funds to their whores in Congress.

If there is anything to be done about this as it sits, I don’t know what it is.

I just find myself thankful there is still room for an individual to claw his way up with hard work to healthy six and seven figure incomes.

Inflation is a weapon against those of us who want to make it to retirement before we are too old to enjoy it.

See, when the government prints money, or adds zeros to a bank account for the benefit of its friends, they have what is called first use.

Those worse times I said were coming? That is due to this government not having enough money to pay its bills. Printing money for the government is similar to you and I continually borrowing more money to pay bills.

At some point you and I run out of credit. At some point people will lose faith in the dollar. While I don’t believe it will happen tomorrow I do believe it will happen.

That will be a very bad day.

If you do not have preparations for that day you and yours will suffer. The rich are getting ready for it, believe it.

First Use of Money, What It Means To You

That new money is worth more to the person who first gets to spend it. By the time it reaches the end consumer,  the average citizen, by way of having been used to buy goods and services on the way down it has made each dollar worth less. This is inflation.

To put it another way, if the money supply goes up by 4.9% as it did in 2014, then the rate of inflation is at least 4.9%, not the claimed 1.5% which everyone who does grocery shopping knows is a lie.

Here is one source that, based on CPI calculations for 1990, shows inflation to be truly moving towards 15%.

How can you retire by making 10% on your money when inflation is eating away at its capital worth at the rate of 15% per year?

You can’t.

The way you get wealthy is you make money faster than inflation can degrade its worth.

That means living on less than you earn and earning more than you need.

Earn More

If your job does not have the ability to allow you to do that then you need another job, a second job or a side business that will provide you with cash flow so that you can buy assets that produce more cash.

A home based business that allows you to work from home has the most flexibility. It interferes the least with your job which in these days you really don’t want to lose until you are confident your cash flow is steady.

Best Regards,

Tim and MaryJane

 

 

 

 

Tim Singleton

(with the love of my life, Mary Jane Singleton)

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