What to do when inflation rages

I love all the anon cunts who aren't brave enough to actually register..

Armed conflict is the only outcome of hyperinflation.

Get ready.

Its all fun and games until you are dealt the same hand those under you are dealt

I see many friends struggling to keep going about their daily lives. Increased costs are slowly eating away at their weekly capabilities.

Yes, plenty of people are able to shell out some big $$$ and make money in the process. BUT how far can this go? I mean eventually the prices will be so astronomical that even the rich will struggle to keep up with their expenses

Somehow, the morans always think that high IQ or education has something to do with sexual orientation.

The insults are a bit tiresome, but I don't take those ACs seriously.

If they insult people IRL like they do on the internet, someone will teach them manners.

I have always wanted to distill the most important thing I ever learned in years of Econ classes for my peeps on GLP.

The most important equation you will ever learn:

GDP (summation of all goods and services produced in a year)

is what we all bought, right? So, that is the average price of an apple times all the apples sold, the average cost of doctor visits times the number of medical visits, etc. Each transaction is in currency whether that is greenbacks, digital, or credit card. So it is the summation of Quantity (Q) times Price (P).

We used MONEY to buy those goods and services

So, GDP is equal to Q*P = money supply (M) times the Velocity (V)

That is the mill pays the farmer for his grain, the farmer buys food, seed, diesel, etc. The baker sells bread and uses the money he gets to pay mortgage, kid's college expenses, etc.

So, the actual amount of money in circulation is multiplied by V, the number of times it changes hands.

So, GDP = Q*P = M*V

If quantity goes up but prices stay stable, then either M or V must go higher. If Velocity, V, is stable, then M must go up. That is why economists generally agree that the Fed must increase the money supply to a growing economy.

What happens when people are worried? They hang onto their money longer so V goes down. If they anticipate inflation, they spend it faster, so V goes up. That throws gasoline on the inflation fire.

What happens when gold and silver are used as currency? That means the money supply is almost stable, so M never changes.

In the 1800s, that is what happened in the USA. The money supply was fixed but the economy was growing.

They had price DEFLATION. People waited to make purchases because they anticipated that prices would be lower in the future. It also rewarded savers.

Our current system penalizes savers as inflation robs them of purchasing power.

What of our current world? M has been increased tremendously. That means that unless production goes UP (Q), then prices WILL rise (P).

I hope that was clear. It is easier with chalk on a blackboard.

Questions from the class?

If any of you are caught copying answers from other students during the Final, I will send them to the Biology Dept. to be neutered.

The best protection against inflation, and meddling by society in general, is minimizing consumption in fiat by becoming as self sufficient as possible. This generally falls under op's category of acquiring productive assets but the end goal is not income generation or wealth preservation. Instead, it is freedom from both monetary and legislative oppression by eliminating unnecessary consumption.

This produces a more resilient and federated society and should be a major initiative for civil defense in a just world imo

Anyhow, good advice about preserving purchasing power during inflation in general, op. I appreciate it.

I have a Masters in Econ and Finance. Like I always say, With that degree and five bucks I can get a latte'.

However, look back at other inflation eras and consider how to survive the devaluation of our currency.

1. Buy property that pays something whether that be rent, farm crops, timber resources, or whatever. I was working the medical field in the latter 1970s. There were doctors buying Iowa farmland sight-unseen and watching it double in a year.

RE is a haven for the middle class or small investor who simply wants to protect his hard earned savings. Don't lose your principal even if you don't make great returns for a while. And usually, you can purchase it with a small down payment or even owner financing.

I sold my ancient motorhome to my next door neighbor a few months ago. This afternoon I was chatting over the fence with his new renter.

My neighbor is renting out the motorhome while it is parked in his driveway for $650/month, and the renter was thrilled to find a place so cheap. All he did was run water, an extension cord, and a flex pipe to the sewer connection.

2. Buy what you will need in the next couple of years. Beans, bullets, and bandaids. Don't you wish you had purchased primers for reloading ammo over two years ago? You could make a tidy profit right now. People are paying high prices and not even complaining.

3. Buy productive equipment. I own a small manufacturing company and a small farm. Last week I purchased $100K in brand new equipment at zero percent interest and zero down.

Hell, it will be worth more as USED equipment next year than I paid for it. Not to mention, I intend to use it and make money with that equipment.

4. Precious metals, hell YEAH! As I was watching silver, I told everyone, "Back up the truck; it is time to buy more silver".

5. Get a side hustle and build new skills. I made a huge mistake when I retired and bought an existing manufacturing company. I should have started small time in my garage and learned the business before I spent all of my savings.

The first company I bought was a total disaster. Sometimes I only learn the hard way.

I am old enough to remember the 1970s, however, what we are headed for is more like 1920s Germany or Argentina. Most countries in the world have defaulted or devalued drastically at some point.

Read the book, This Time It's Different. A couple of Harvard economists writing about devaluations and defaults going back to Rome.

I hope you all survive what is coming.

Armed conflict is the only outcome of hyperinflation.

Get ready.

I have always wanted to distill the most important thing I ever learned in years of Econ classes for my peeps on GLP.

The most important equation you will ever learn:

GDP (summation of all goods and services produced in a year)

is what we all bought, right? So, that is the average price of an apple times all the apples sold, the average cost of doctor visits times the number of medical visits, etc. Each transaction is in currency whether that is greenbacks, digital, or credit card. So it is the summation of Quantity (Q) times Price (P).

We used MONEY to buy those goods and services

So, GDP is equal to Q*P = money supply (M) times the Velocity (V)

That is the mill pays the farmer for his grain, the farmer buys food, seed, diesel, etc. The baker sells bread and uses the money he gets to pay mortgage, kid's college expenses, etc.

So, the actual amount of money in circulation is multiplied by V, the number of times it changes hands.

So, GDP = Q*P = M*V

If quantity goes up but prices stay stable, then either M or V must go higher. If Velocity, V, is stable, then M must go up. That is why economists generally agree that the Fed must increase the money supply to a growing economy.

What happens when people are worried? They hang onto their money longer so V goes down. If they anticipate inflation, they spend it faster, so V goes up. That throws gasoline on the inflation fire.

What happens when gold and silver are used as currency? That means the money supply is almost stable, so M never changes.

In the 1800s, that is what happened in the USA. The money supply was fixed but the economy was growing.

They had price DEFLATION. People waited to make purchases because they anticipated that prices would be lower in the future. It also rewarded savers.

Our current system penalizes savers as inflation robs them of purchasing power.

What of our current world? M has been increased tremendously. That means that unless production goes UP (Q), then prices WILL rise (P).

I hope that was clear. It is easier with chalk on a blackboard.

Questions from the class?

If any of you are caught copying answers from other students during the Final, I will send them to the Biology Dept. to be neutered.

Since covid began, 80% of all the dollars ever created came into existence. You don't think that is inflationary?

Where does such ignorance come from?

Holy shit.

interesting. :)

However, there are some factors that cannot be controlled.

1. evolution in technology vs current amount of humans.
2. normal change in environment vs change in the actual ability to live in certain areas of the World.
3. payback of all previously growth in the current situation, from nature itself, through novel diseases.
4. luck factor, because we certainly depend on luck mostly, if you take under consideration that Earth is not alone outthere.

The above factors, change the whole perception on the whole subject, simply because it is not just another inflation.

This inflation is only a distraction.

They will use us, abuse us and in the end, kill us.

No matter where you invest or what you do, you only buy time, which is so precious at the current moments of truth, that simply cannot be bought.

I made a post, earlier, where I wrote the name of that German republic that had the infamous inflation and IT WAS BLOCKED. I had to re-write the post and say "German republic". What do you make of that?

There is NO inflation you moron

Oh wait you went for the “covert brag no wait I’m humble” strategy

Nice one

There is NO inflation you moron

I have a Masters in Econ and Finance. Like I always say, With that degree and five bucks I can get a latte'.

However, look back at other inflation eras and consider how to survive the devaluation of our currency.

1. Buy property that pays something whether that be rent, farm crops, timber resources, or whatever. I was working the medical field in the latter 1970s. There were doctors buying Iowa farmland sight-unseen and watching it double in a year.

RE is a haven for the middle class or small investor who simply wants to protect his hard earned savings. Don't lose your principal even if you don't make great returns for a while. And usually, you can purchase it with a small down payment or even owner financing.

I sold my ancient motorhome to my next door neighbor a few months ago. This afternoon I was chatting over the fence with his new renter.

My neighbor is renting out the motorhome while it is parked in his driveway for $650/month, and the renter was thrilled to find a place so cheap. All he did was run water, an extension cord, and a flex pipe to the sewer connection.

2. Buy what you will need in the next couple of years. Beans, bullets, and bandaids. Don't you wish you had purchased primers for reloading ammo over two years ago? You could make a tidy profit right now. People are paying high prices and not even complaining.

3. Buy productive equipment. I own a small manufacturing company and a small farm. Last week I purchased $100K in brand new equipment at zero percent interest and zero down.

Hell, it will be worth more as USED equipment next year than I paid for it. Not to mention, I intend to use it and make money with that equipment.

4. Precious metals, hell YEAH! As I was watching silver, I told everyone, "Back up the truck; it is time to buy more silver".

5. Get a side hustle and build new skills. I made a huge mistake when I retired and bought an existing manufacturing company. I should have started small time in my garage and learned the business before I spent all of my savings.

The first company I bought was a total disaster. Sometimes I only learn the hard way.

I am old enough to remember the 1970s, however, what we are headed for is more like 1920s Germany or Argentina. Most countries in the world have defaulted or devalued drastically at some point.

Read the book, This Time It's Different. A couple of Harvard economists writing about devaluations and defaults going back to Rome.

I hope you all survive what is coming.

I have a Masters in Econ and Finance. Like I always say, With that degree and five bucks I can get a latte'.

However, look back at other inflation eras and consider how to survive the devaluation of our currency.

1. Buy property that pays something whether that be rent, farm crops, timber resources, or whatever. I was working the medical field in the latter 1970s. There were doctors buying Iowa farmland sight-unseen and watching it double in a year.

RE is a haven for the middle class or small investor who simply wants to protect his hard earned savings. Don't lose your principal even if you don't make great returns for a while. And usually, you can purchase it with a small down payment or even owner financing.

I sold my ancient motorhome to my next door neighbor a few months ago. This afternoon I was chatting over the fence with his new renter.

My neighbor is renting out the motorhome while it is parked in his driveway for $650/month, and the renter was thrilled to find a place so cheap. All he did was run water, an extension cord, and a flex pipe to the sewer connection.

2. Buy what you will need in the next couple of years. Beans, bullets, and bandaids. Don't you wish you had purchased primers for reloading ammo over two years ago? You could make a tidy profit right now. People are paying high prices and not even complaining.

3. Buy productive equipment. I own a small manufacturing company and a small farm. Last week I purchased $100K in brand new equipment at zero percent interest and zero down.

Hell, it will be worth more as USED equipment next year than I paid for it. Not to mention, I intend to use it and make money with that equipment.

4. Precious metals, hell YEAH! As I was watching silver, I told everyone, "Back up the truck; it is time to buy more silver".

5. Get a side hustle and build new skills. I made a huge mistake when I retired and bought an existing manufacturing company. I should have started small time in my garage and learned the business before I spent all of my savings.

The first company I bought was a total disaster. Sometimes I only learn the hard way.

I am old enough to remember the 1970s, however, what we are headed for is more like 1920s Germany or Argentina. Most countries in the world have defaulted or devalued drastically at some point.

Read the book, This Time It's Different. A couple of Harvard economists writing about devaluations and defaults going back to Rome.

I hope you all survive what is coming.