Guns America: Why You Are Getting Poorer Every Year

You might think you are getting poorer each year because of inflation, mostly driven by out of control government spending financed by debt. But there may be more about it than that according to this article from Guns America: "Why You’re Getting Poorer Every Year." The author begins:

    Every once in a while, someone explains what you’ve been feeling… but couldn’t quite put into words.

    This is one of those times.

    In a recent sit-down with Peter McCormack, macro analyst Lyn Alden didn’t sugarcoat it. She didn’t hedge it, she didn’t dress it up in economist jargon, she just said it.

    “Do you believe we’re living through a slow financial collapse that the majority of people don’t even recognize is happening?

    Her answer, “I do.”

Sip on that for a moment. Because if you’ve been wondering why everything feels tighter (even when you’re making money) you’re not crazy. You’re just living inside the system she’s describing.

    First, inflation plays a role: "It comes from debt, money creation, and whether people realize it or not, debasement." Because that is what is inflation over time: debasement of a currency. And the reduction of your purchasing power. 

    Second: "This is where things go from uncomfortable to outright brutal. Alden explains that the real winners in this system aren’t the savers. They’re the borrowers. The ones who can take on debt, buy assets, and effectively 'short the currency.'"

    Third: It is a form of theft. "Not theft in the traditional sense. No one’s kicking your door in and grabbing your wallet. It’s quieter than that. It’s your dollar buying less. Your savings shrinking in real terms. Your future is getting more expensive."

     Fourth: Some suggestions:

     If the system is slowly eating away at your money, doing nothing isn’t a strategy. You don’t need to go extreme, but you do need to be intentional.

    Start by getting out of pure cash. If your savings are just sitting there, they’re losing value every year. Think in terms of hard assets (real estate, commodities, long-term equities) that hold or grow value over time, not just dollars in an account.

    Understand how debt actually works in this system. Used wisely, fixed-rate debt can work in your favor as inflation rises. But there’s a big difference between leveraging assets (buying something that pays you) and drowning in liabilities (buying something that drains you).

Related:  

• "What Caused Rome to Collapse?" Inflation/debasement of the currency, predatory levels of taxation, unsustainable government spending, and a contracting economy.