Inflation – No Longer A Threat To Your Savings
- The word ‘inflation’ has pretty much disappeared from today’s economic / investing discourse. Or, maybe it’s just being ignored.
- In times of inflation, economic activity and peoples’ savings weaken as the cost of living goes up – a double assault on everyone’s standard of living.
- The government encourages inflation through deficit spending and debt build up.
- The U.S. dollar continues to benefit from being the reserve currency of the world, but that status and responsibility requires a high level of fiscal integrity.
- The U.S. has thus far avoided the inflationary consequences of piling up huge public debt and quadrupling the money supply (quantitative easing) since the Great Recession of 2008.
- Investors’ collective attention is being deflected away from hidden inflation, now just beginning to emerge.
- Modern Monetary Theory (MMT) – today’s version of an economic perpetual motion machine is seriously flawed.
- It remains important to protect your savings from inflation by including ‘real assets’ (that keep pace with inflation) in your portfolio.