To Be Rich During Inflationary Times, You Need Assets. But, What Is An Asset?
What is an asset?
Well, according to Robert Kiyosaki, it is something that puts money into your pocket. And this was a good definition during the times of Monopoly (the game, become reality), during the times of inflation via money printing to the extreme.
During this coming financial collapse, an asset may be considered anything that doesn't lose its value. Most would consider gold to be in this class, however, a new pair of gloves may be even more so.
But, is just holding its value good enough? Or do we want things that will rise in value?
We are so used to living in an economy where prices continue to go up. And so, we look for things that beat inflation. But, what if we move into a world with real money, and very little inflation? Or even, deflation?
Our assumptions of the future will change what we think of as assets.
All the olds die
The things we call "investments" today are only such because of money printing.
The stock market goes up because of money printing.
The real estate market goes up because of money printing.
Bonds are paid, because of money printing.
Without the money printer, all of these go down in price.
And one could say that the THING that the Fed does is manage rates so that these things do not deflate.
Unfortunately, we have entered the time when these things will deflate. First because the Fed is going to try to crash the market (so they can buy these things up cheap), but even more importantly is that these things are going to become worthless.
Stocks will be found to be WAY oversold. The entire stock market is fraudulent. They will "fix" this with on-chain stock trading, but this won't last for even half a century as all the big corporations are shuttered for the bad things they have done.
Real Estate is crashing. And then the demographic collapse, and die offs leave two empty houses for each person who would want a house to live in. People decide that the homestead life is where its at, and suburban housing becomes abandoned. You won't even be able to give them away.
Bonds cannot exist with real money. Usury is charging any interest, because it isn't long before the debt is larger than the amount of money. Like, it would become very apparent when the debt is over 30 million bitcoin, that we cannot pay interest.
What is an asset?
From a business accounting point of view, an asset is something that you have that allows you to do your business. And its value is usually denoted as its price you could sell it for. Of course, the value to you and your business can be much different than its resale value.
Today, most people (who are not entrepreneurs) think an asset is something that you can sell for money.
Of course, most everyone thinks that money in the bank is an asset. (although it is not your money, and it is losing value every day)
So, what will an asset be in the future? This is a really hard question to answer, because even accounting will change as we move into a more abundant future. Do we keep track of how many cubic feet of air that we have? Many things, like KwH of electricity, that we keep specific track of today, will be so abundant that we will feel no need to in the future. How much value to a tool that is extremely important to your work, but if it ever gets lost or broken, your friend will make you a new one, free of charge?
What will we keep track of in our ledgers after the Infernal Revolting Syndicate is gone?
Our homesteads and all the infrastructure might be considered an asset, but it is not for sale. And no "bankruptcy" shenanigans will dare touch it.
So, basically, the only asset in the future might be bitcoin. The problem with this, is there is no associated debit to be placed in our books. And accounting will be very different.
What we want to know is how to make the most from this monetary change
Well, if we go far enough into the future, nothing available today will be worth much. Needs will be met by you and your community. Wants will be met by exchange. Energy will be almost free. Gold is a pretty yellow metal used to make pretty yellow ornamentation.
Abundance mentality and advanced mining/extraction techniques makes things just a matter of time, not scarcity. We will have gotten away from zero-sum games, and learned to bargain for win-win solutions.
So, what is the things that will be valuable in the near future? Things that will carry us across this financial collapse, or make us rich?
Well, it is most everything new.
Bitcoin and silver.
Food and skills.
Homestead and "family".
Most things that are considered assets today are going crookedly to zero.
Stocks, bonds, city and suburban real estate are going away, but before then, they are going to crash hard.
Bitcoin will go up, way, way up.
FRNs (Federal Reserve Notes) are going to zero, but there will be a time when cash will be king. Not money in the bank.
Gold will go up and up, and then down and down and down.
So, if you have gold, be sure to trade it for something else while it is way up.
Silver will become the most important manufacturing element on the planet. Gold, oil, cobalt, lithium will all be blown away. Do not sell your silver until its over $1000 per.
Food, good food, will become a lot more expensive, and may not be available without you knowing a farmer. Become the farmer.