Anyone know what this pic represents?
Scary stuff… gotta protect ourselves against this.
Hyperinflation in Venezuela has this chicken costing over 14 million bolivars about $2.22 USD… thats crazy imagine carrying your wheel barrel of money to the grocery store. Hyperinflation happens when inflation reaches 50% per month… that means the $1,000 in groceries you spent last month is going to cost you $1,500 for the same groceries this month and $2,250 the next month.
People like the CEO of Square say Hyperinflation is real and it’s happening.
Hyperinflation is going to change everything. It’s happening.
— jack⚡️ (@jack) October 23, 2021
There’s 3 main causes of hyperinflation and 3 solid ways you can insulate yourself against it!
Hyperinflation can happen due to an excessive money supply ($850 billion in stimulus), global shortages in supply chain inventory (China power outages), and the lack of confidence in the economy (watch the DOW and the dollar index).
How do you protect yourself against it? Well, this is a tough question because it’s hard to escape especially for the consumer. So the best thing to do is start there! Instead of being a consumer you should start a business! This allows you to grow with inflation and absorb some of it from affecting you. For example, as your expenses start to increase, you can simply increase your prices.
Another way to protect yourself is to buy land! Land increases with the cost of inflation which is why you see a general increase in home prices over time, no matter where the home is located. Being a landlord allows you to buy and hold property that also produces monthly income from rent payments as well. As the average rents increase in an area, you can take advantage of the higher standard of living.
There are a few more ways but on thing that cannot be missed is eliminating debt and working on your credit score! It’s much easier to negotiate and get access to money now while inflation is low than later when everything is much more expensive. Choosing between your rent and credit card bill is already a common dilemma for some Americans, imagine when your rents double! By eliminating debt now and increasing your credit score, you will be in a much better position to ride out a price storm. Another thing to consider is being able to use your credit to take advantage of assets going on sale like foreclosures and store closings, without using your cash.