The popular story in the news is that people are suffering because everything is getting more expensive, and that the rich have too much money, while everyone else doesn’t have enough. This is true partially - the rich have too much money…
But so does everyone else.
Money is debt, and everyone who has money is expecting that debt to be paid. What comes next is that money, across the board, is going to be devalued. The reason is simple: Money is debt and there is way too much debt to be paid.
In short, society will default on this debt.
Think of it this way - Everyone who is holding money expects to be able to use it to purchase something. Right? This is also the concept of other types of debt. Money is a promise of something of value in the future, in exchange for giving something of value today.
Simple.
Now, all that money out there in the world today, regardless of who holds it, is expected to be changed into food, clothes, flights, entertainment, housing, property, and so on.
This is a big problem because there is a proverbial shit ton of money out there that needs to be converted into something.
While many talk about resource shortages, the concept of a shortage is really subjective. From a survival standpoint, there are more than enough resources to keep everyone on the earth alive and relatively well. From the perspective of the current global economic engine, there is a guarantee that many people will be deprived of what they need; this is because holders of money will demand that their money provide a return.
This can be called greed, but in the mind of the money holder it is simply getting what is owed to them.
Unfortunately, those people will be disappointed.
If history is any guide, the people without money who are slated to be doomed in the name of maintaining the value of money will not go quietly into the night. Instead, they will revolt in some way shape, or form, be in social, cultural, or violent.
However this plays out, the end result will be the same - value of money will decline sharply and fast.
There simply will not be a way to convert it into the expected goods or services.
Period.
This will affect everyone, but it will mostly affect people who have more money than they need to survive because they will see the purchasing power of their money plummet.
Meanwhile, those who don’t have money will not see their investments fail, and their modes of day-to-day life will remain largely intact. This will of course be because of government interventions, but those interventions will occur, because if they do not then the people will revolt and kill their leaders.
Either way, the have-nots are in the driver’s seat.
In this current economic climate, Jesus had it pegged when he said:
“Blessed are you who are poor, for yours is the kingdom of God. “
For the rest of us who depend upon money, we will need to make serious adjustments. Investing in cash is likely a bad idea, so the smarter thing is to purchase personal infrastructure that allows for sustainable living.
Buying planting pots that will last for years, books about crafts, a sewing machine to repair and make your clothes, and of course, a good education on how to prepare and cook food.
This is not meant to be a doomsday article, and I am not predicting the end. I am, however, predicting that those without money today will be far savvier at providing comforts and survival than those who currently depend exclusively upon the goods and services of others.
Desperate times call for thrifty measures.
You can quote me on that.
I kind of agree with you, Joshua, but an extra $20K a year wouldn't hurt me at all...
In the US, I’m hoping my savings will cover medical care.