Afternoon! I’m writing to you from the “Castle At the Sanctuary”, in the Dominican Republic (a further, longer post to follow about that).
I’m here at the Financial Summit with Tone Vays and 50 other Bitcoin traders, investors, the founders of family offices (and their partners). They are all very nice, only one other Brit to be found and she’s an artist. Find Abi Fantastic’s website here.
My suite is gorgeous and my only complaint is that it’s quite hard to clamber up onto my huge princess bed last thing at night! Then when I’m in there, I can’t reach the bedside light switch from the middle!
The reason I’m writing this post is that I’ve just popped back into my room for an unexpected lunch break to find two wildly differing headlines rotating on social media.
First a tweet from the Bank Of England:
“We expect inflation will be close to our 2% target in around two years. It’s our job to make sure that inflation returns to our 2% target, and that is what we will do”.
In the same batch of messages, I find GBNews discussing the shocking news in Thursday’s Independent that inflation will be running at 15% next year.
So which is it? 2% or 10% (which is the official inflation rate in the UK). Everyone in the know says the real figure is nearer 20% by the way. So this new ‘official’ figure of 15% is likely to be more like 25-30%.
UPDATE: Now, just a month later, they are predicting 18% by next year so that’s a bit of a shocker.
Energy bills are largely being blamed for this. Russell Brand has been banging on about this, and while I’m usually a big fan, he’s got it completely wrong. He’s making an absolute tit of himself in public, which is a shame.
Now, let’s discuss what nobody is saying, which is that inflation is NOT caused by rising prices. Inflation is caused by Central Banks printing money, or in other words, inflating the money supply.
If you introduce more currency to the system without also adding more value, the value of the existing currency in that system goes down. Prices and wages go up to compensate for that loss of value (or purchasing power) and so are a CONSEQUENCE and not a CAUSE of inflation.
If you would like to find out more about how inflation works here’s one of my favourite macroeconomics on YouTube, Mario from Maneco64 outlining why Russell is so completely wrong.
If you would like to educate yourself about what money (and currency) really is, I highly recommend Mike Maloney’s video series “Hidden Secrets Of Money“. That’s a link to Part 1, the world is currently on Parts 7-8.
Meanwhile, the White House is busy redefining the actual meaning of ‘recession’ (just like all governments did with the word ‘vaccine’).
So while our Governments redefine terms and gaslight us about what’s really going on, I want to know if you are paying attention to what’s going on and if so, what are you going to DO about it?
Now, I know you can’t do anything about the government gaslighting you, or the lack of growth in our country’s gross domestic product or GDP.
But there are things you can do to protect your family from the worst of the consequences most people will experience in the next few years.
If you have any savings, then by next year you’ll be losing the value (the purchasing power) of those savings at the rate of inflation – officially 15%. So how are you going to make more currency to invest in inflation beating assets in order for your savings to keep pace with inflation?
If you don’t have any savings, how could you start growing your own food, keep yourself warm without using central heating and seriously think about how to make more money, in order to invest in real stuff like food, fuel and then assets, ideally assets that will grow at more than the projected rate of inflation?
The Governor of the Bank Of England predicted in the Telegraph recently (also reported in the Guardian) that there are going to be ‘…apocalyptic food shortages’ and while I have been stocking up with dried stuff, I actually find it really hard to imagine anything too bad. However, I was very shocked to see the state of the shelves in the Shoreham Co-Op when I came back from Greece the other day.
Luckily we were only shopping for an informal garden picnic, but imagine you are a busy mother of 4 who only has this lunchtime to do the weekly shop?
In that article, the Governor said “80% of the inflation target overshoot was caused by factors outside the Bank’s control.”
It’s 100% caused by factors inside the Bank’s control.
Also in the article “Amid growing concern about Britain’s cost-of-living crisis, the head of the CBI, Tony Danker, called on the chancellor, Rishi Sunak, to offer immediate help to those struggling to feed themselves at a time of rising food and energy prices. The director-general of the employers’ organisation said there was a “moral imperative” on the government to act.”
“To act” means to print more money to give away.
Governments don’t ‘make money’ from anything except taxes. So in order to give money out, they either have to tax us more or print more money. Which devalues the value of the money already in circulation, which causes more inflation. Maybe even into hyperinflation.
All was predicted back in April 2020, by my wealth creation mentor by the way.
What is hyperinflation?
Google says “If you were living in a country gripped by hyperinflation, you’d know about it. It refers to a situation where the prices of goods and services rise uncontrollably over a defined period of time. In general, the term is used when the rate of inflation increases at more than 50% a month.”
The price rises are caused by people panicking and then buying real-life goods and services because they are worried about the buying power of their money going down and/or the producers and providers putting their prices up because things cost more for them to produce and provide.
Hyperinflation has happened to several countries recently, the most recent of which is Sri Lanka. Many countries teeter on the brink of hyperinflation, but often not the West, so we don’t hear about it. Now it’s happening in the West, especially when it comes to energy costs, so we ARE hearing about it.
Coming back to the here and now, you might be wondering what you can do to prepare?
Well, I’m going onto El Salvador, then Mexico, but after that I’ll be back in Shoreham and I’ll be hosting a webinar to talk about what most ordinary people can do to prepare for what’s coming.
I’ve been shouting about this to my friends and family for two years now, but I think they are finally noticing that some odd things are happening.
None of which are a surprise to me, one of my mentors laid out a step by step timeline on what would happen when, as a result of the actions the Governments were taking, in lockstep, globally, back in April 2020.
Would you like to join us?
You’ll get to ask your most pressing questions about your own situation, so do feel free to sign up under an assumed name.
Just indicate in the comments below whether you are interested and if you there is enough interest, I’ll set the webinar up.
Right, now back to the conference room!