This is NOT a political letter.
Please don’t reply with some comment about politics.
I think most of us watched the debate the other night.
You know what WASN’T mentioned, once?
The currency.
The US Dollar.
This is shocking to me, because this is the ONE issue that will determine the majority of the Economic consequences over the next 4 years but also the next decade, World-Wide.
Maybe, they didn’t mention it because they CAN’T CONTROL IT….
And yes, I know there are MANY issues in our World right now. But I think we can all agree that a majority of these issues all come down to one thing… MONEY.
I’m going to keep this high level, particularly because I just started this letter a few days ago and I don’t want to scare anyone off.
But here’s a brief history of how your money has been devalued about 99% over the past 50 years.
Don’t believe me? Here’s McDonald’s menu in 1970.
How did this happen? Obviously burgers have likely gotten CHEAPER to make (because of technology) yet the price has gone up exponentially.
It all started in 1971 when the US decided to BLOW UP the “Gold Standard”.
The gold standard literally just meant that you could turn in your dollar bills for a certain amount of gold.
IT MEANT THAT THE MONEY WAS ACTUALLY BACKED UP BY SOMETHING.
It was like if I loaned you 100k.
But I took your car and your house keys.
If you paid me back, I gave them back.
Otherwise I kept them.
OBVIOUSLY, that made the currency MUCH more stable, because there was ACCOUNTABILITY on the side of the government.
However, that all ended in 1971.
From then on out, we have been under this “Fiat” system.
That’s just a fancy word for “nothing is backed by anything”.
All the world currencies ->
Euros, dollars, yen, whatever
Are just valued based on what each other is valued.
You’re smart, so you can clearly see, that something is a little messed up about that, right?
Where does the value actually come from?
What is it based on?
Honestly, the short answer?
BELIEF.
People BELIEVE that dollars have value, which is why they have value.
That’s it, that’s ALL that holds our money together.
Which is pretty scary considering the government printed about $3 TRILLION DOLLARS out of thin air in the US alone, this year.
It will probably be over $5 TRILLION by the end of the year.
When I say “printed” again, I can go into details on how that is done.
But in essence, the “Federal Reserve” just hits a few buttons and magically, new dollars are created.
It’s pretty messed up, to be honest.
All it does is make the rich richer.
Jeff Bezos Got a LOT richer this summer.
Elon got a LOT richer.
Gates got a LOT richer.
Why?
Because they own ASSETS.
Companies, homes, gold, bitcoin.
Anything that is SCARCE and actually has intrinsic value immediately recognizes that oh, the government just made 3 trillion more dollars, that means each dollar is worth less, which means that because I HAVE VALUE MY PRICE GOES UP.
Read that sentence above one more time if you don’t understand that concept because it’s really important.
So, people like me, who own assets, make a killing during all this money printing.
And we have been making a killing for the past 50 years.
That’s why 3 people
Bezos
Gates
Buffet
Have more money than 50% of all Americans.
Hey, I’m not here to judge, it is what it is.
I’m just telling you that it’s PRETTY SHOCKING that the two people running for president didn’t even MENTION this craziness that’s going on.
(yes I know they talked about V vs K shaped recovery, but they didn’t mention the SOURCE of the problem, the “money printer”)
And here’s the KICKER, the real problem.
There is NO STOPPING THIS.
Governments AROUND THE WORLD are ADDICTED.
Seriously addicted like a crack or meth addict, to money printing.
They literally HAVE to do it, and speed it up more and more and more.
Or we will all go into a DEEP DEEP depression.
We can go into the details about why this is true in a future letter.
But I just wanted to let you guys know this, because, it seems, no one else will tell you.
If you are wondering what to do upon learning this information, here’s what I’d suggest.
1) do more research (or simply subscribe to this letter, I’ll send it to you daily)
2) start a business (instead of getting mad at people like Bezos and Musk, why not start a business and reap the same rewards as them?)
3) Buy Bitcoin. it’s the scarcest asset in the entire world. Imagine a mona lisa, but much more useful.
4) Buy Gold, if you can’t get your head around bitcoin.
Have a great day, thanks for reading.
Kale
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