Digital Inflation

by | Apr 16, 2021 | Content Updates

Digital currencies will make inflation easier.

Our last message at this site told how three investors walked into a bar, one with a dollar, one a Bitcoin and one a with a digital Chinese yuan. That message looked at how central bank digital currencies (CBDC) , from a privacy point of view, were a portent of doom.

CBDCs are simply horrible when it comes to privacy.  So, what do digital currencies mean when it come to currency stability, purchasing power and inflation?

silver

My grandfather gave all seven of his children a silver dollar with their birth date.  My mom gave hers to me shortly before her passing. I carry it always to remind me of value. That last message looked at the fundamentals of real money which is a commodity that is durable, divisible, portable, desirable, defensible and rare. Anything that fits these tests can be used as money.

Historian Yuval Noah Harari, wrote in his book Homo Deus: A Brief History of Tomorrow, “Hierarchies serve an important function. They enable complete strangers to know how to treat one another without wasting the time and energy needed to become personally acquainted.

He points out that fiction within a hierarchy isn’t bad because without commonly accepted stories about things like money, states or corporations, no complex human society can function.  Money is the most successful fiction of all.

“Money is not coins and banknotes. Money is anything that people are willing to use in order to represent systematically the value of other things for the purpose of exchanging goods and services.”

Money must be rare and require effort (real production or work) to attain.  If you look at all of the qualities of money, you can easily see why gold and silver have been a popular form of money for millennia.  The precious metals have all of the qualities.

Gravel does also, except rarity.

If you compare gravel to gold, you will see that gravel has all of the qualities, except rarity.  Gravel is as common as dirt and if gravel were used as money instead of gold, the temptation to just pick it up on the road, rather than work for it, would be too great.

Money must offer an incentive to work and apply discipline.  Rarity creates this incentive. Reducing this quality of rarity creates inflation.  When a government reduces the rarity of its money, the action destroys the money’s purchasing power.

privacyprivacy

1 million papiermark postage stamp

The German Papiermark, was inflated so drastically. from 1914, that when it was replaced by the gold back Rentenmark, in 1924, the conversion rate was 1 trillion to 1.

Why would a government want to weaken its currency?

Governments as a whole might not.  Politicians as individuals do, inadvertently perhaps, because promising something for nothing to voters attracts votes.  The way politicians can come up with this defiance of nature is through deficit financing using fiat currencies.

Before deficit financing and fiat currencies, paper money came into being when honest jewelers stored precious metals for people and issued bearer certificates.  The certificates represented gold or silver in storage.  The paper represented real money and because the jewelers were honest, the certificates were as good as gold.

When governments become involved in issuing paper money, or awhile these certificates will be “as good as gold or silver too”.

Let the debasement begin.

But government involvement seems to always debase the currencies they issue (for the reason explained above). Even with coins they tend to change the link of the currency to a fraction of the gold or silver originally represented (or eliminate the precious aspect totally).

There is solid history in this fact. Let’s look at England’s early coins to understand this.  Around the year 1100 pennies were struck from pure fine silver.  Then in 1158, a new coinage was introduced by King Henry II that was only 92.5% silver. This standard lasted through Henry III, but Edward I began changing the weight of a pound. By around 1354, the pound sterling was only 80% of the pound weight. Henry IV carried on the tradition of debasing the pound so the pound sterling was reduced to two-thirds of a pound weight.  The pound sterling was adjusted in weight several more times subsequently, always made lighter as you can imagine.

Finally the abandonment.

privacy

Eventually, governments tend to abandon their currencies link to any precious metal.  This took place in 1971 for the US dollar, the fiction of a link to a precious metal was abandoned and replaced with the “full faith credit” of the government.

Once this happens the money became a total fiat money.  It’s only desirability is based totally on fiction.  Fiat money is money that’s good only as long as people want it because it is no longer backed up by anything of intrinsic value. So what’s the big deal about digital currency?

The US dollar is already very much a digital currency. If I pay from something with my Amex card, the company does not send paper cash to the merchant.  When I pay my Amex bill from my checking account, I don’t even send a check.  The balance is removed from my bank acct and ends up in one of Amex’s account.  All the transactions are digital.  No pieces of paper are moved at all.

If the Federal Reserve Bank wants to inject money into into the economy, it doesn’t print the pieces of paper and send them out by truck.  The bank simply digitally increases the money supply available to banks so they can distribute the money through loans which is also done mainly electronically.

All the parts for serious inflation are in place.  A post pandemic boom, low interest rates and  added costs in dealing with supply chain problems could all lead to inflation, but a central bank digital currency won’t automatically create inflation. On the other hand added productivity that comes from AI and other computer technology (that’s used in creating and manipulating a digital currency) may help keep costs down.

Crypto Currency just makes it easier on the government Once a currency’s link to gold or silver, or anything that is desirable and rare, is gone, the  government is in a position to steal the purchasing power of the currency. and a central bank digital currency just makes it easier for the government to issue more money and to control that money, see who has it and how and where it is spent.

privacy

Yuval Noah Harari  also wrote: “The governmental tortoise cannot keep up with the technological hare” so as crypto currencies become available to business and governments, we should expect them to misuse this new technology.

One area of special concern is how governments will deal with competition from open crypto currencies.   Past performance is no guarantee of future government malfeasance, but history suggests that when a government’s sovereignty  is threatened, it will create legislation (such as in in 1933, when the US made gold ownership illegal and punishable by up to ten years in prison) to eliminate the competition.

My business, when it started over five decades ago, was all about global investing and maximizing the profits in the most legal, private way possible.   Our seminars used to begin with “How to become one man multinational”.  We taught the six point command posture, “Live in one country, Bank in a second country,  Hold assets in a third country. Earn income in a fourth, through a company in a fifth with an office in a sixth country”.

This totally legal approach to privacy and asset protection was so powerful that over the years the US government (and others) passed a myriad of legislation to make it impractical to all but the wealthiest few.

From a practical point of view, financial privacy for the average person in most of the developed countries is long gone.

So when China’s digital yuan is met with America’s digital dollar don’t be surprised if the US (and Chinese) governments both create laws that prohibit holding one other digital currency.

Even worse watch out. The legislation could include bans on holding open crypto currencies such as Bitcoin (or the legislation will impose strenuous reporting regulations). Crypto currencies may be so good that governments can’t stop them… neither could governments stop drinking with prohibition nor could governments stop drug use with controlled substance regulations. Be warned!  Governments do some really stupid things when they feel they are losing control and open crypto currencies could threaten governments… a lot.

Gary

CHAOS CREATES MANY OPPORTUNITIES FOR YOU

Cash in on the new normal.

If the pandemic has taught us anything it’s that the so called “experts” really don’t have a clue how to solve this problem. We cannot rely on their information. Instead, we need to plan for and prepare for our own “new normal” if we want to survive.

The pandemic is not the only problem.

The global response to this viral outbreak is just one signal of a world that’s sliding into a devastation and disorder.  The worst turmoil is still to come because of the economic destruction.

With mounting debt, we are well into an economic collapse that will be worse than the pandemic.

The current social economic archetype has already killed millions and destroyed the finances and lives of far more.   Worldwide, unemployment is at an all-time high.  Many businesses have been destroyed.

Governments are trying to solve the problem by throwing money on the fire and are they are being crushed in debt in the process.

Yet, this is just a beginning. It is estimated that it will take 10-15 years to recover from the economic devastation.

To survive the coming economic downturns, you’ll need to learn the importance of adjusting how you live, work, invest and take care of yourself for the next ten to fifteen years!
You can’t rely on governments to bail you out.

Adapt!

That’s exactly what Merri and I have been doing for the last 50 years.

3 d

We have learned the power of being able to adapt to constantly changing markets all over the world and created a not-so small fortune while doing so.  That’s why we’re uniquely qualified to teach you how to not just survive but to PROSPER during the challenging times ahead. Chaos always creates many opportunities for those who know how to spot them and take advantage of them. A good example has been the mass exodus from urban areas to more rural areas.

Since many are working from home, they can live anywhere. There is a shortage of good housing in rural areas now. Merri and I are buying then rehabbing houses to full the gap.  We saw this opportunity coming and jumped in early.

We let readers know of the risks of a pandemic, back in 2016.

Many are already enjoying a safer more secure and financially stable lifestyle already despite the lockdowns and crumbling economy.

Instead of waiting for things to get better, start preparing for things to get worse, much worse.

You also need to learn how to spot opportunities which are all around you. As the economy changes, the opportunities will change too.

That’s why Merri and I keep a constant pulse on opportunities worldwide and report our findings to a special club of unique individuals that we started over 30 years ago. For decades, this club has been called the International Club, but this year we renamed it the Pruppie Club.

What is a Pruppie?

Pruppieism, the new economic and social realism.  Pruppies, like Yuppies, expect everything to expand. They take advantage of every new benefit and technology they can. Pruppies enjoy using the fruits of our ancestor’s deliberations and labors to earn in this advanced technological world.

Pruppies, also, like Preppers, engage in activity that they love that will sustain them when society and the incredibly intricate weave of our global economy and society let us down.

We need to be both, Yuppies and Preppers, Pruppies!

Take profit from the incredible new technology that gives us super powers to earn and grow wealth. Be safe and secure, when social economic tidal waves like plagues, stagflation fascism and communism overwhelm the world.

Pruppies are prepared in case everything, everywhere, or at least everything relating to their income and savings fails and the fabric that surrounds their lives disintegrates into an unknown veil.

Yet a Pruppie’s preparation is not a sacrifice, but a joy as you will see.

Learn how you can become a Pruppie.

gary-scott-orange-grove

I’m no farmer but grow citrus so I’ll always have food to swap. Let me show you how to lock in your food supply.

EARLY ACCESS! We are changing more than the club’s name and you can be in the unique position as one of a select few who are charter members of our new Pruppie Club.

You’ll be the first to know about opportunities and trends all over the world in our bi-monthly report and monthly conference calls which are exclusively for members.

You’ll learn how to:

  • Create a sustainable income without a job or a pension – just in case you lose your job or there is a disruption in pension payments.
  • Learn how to make money working from home – wherever home might be.  A location independent business gives you the flexibility to move to a safer or more affordable location if necessary.
  • Turn your passion in to a profit.
  • How to create quick cash and lasting wealth when you don’t have any money to get started. This strategy can help you build a nest egg fast.
  • Learn easy ways to grow food, including beekeeping, hydroponic and greenhouses (if necessary, food can be used to trade for other services or to sell)
  • Natural healing and lifestyle changes to make now to avoid expensive medications later.
  • Alternative water sources including rainwater collection – just in case the municipal supply is not available for extended periods of time.
  • Alternative Heating and Power. Solar, wood, wind, and hydropower.
  • Where the opportunities are now and the best way to profit from them.
  • Communication beyond internet – how to stay in touch if the internet or power goes down. Protect against government and businesses from snooping around what you wrote and say.
  • Learn about safe social media sites.
  • Precious Metals, Crypto Currencies, and stock investing diversification strategies.
  • International living to reduce costs and gain more freedoms

All this and much more will be EXCLUSIVELY available to you as one of the select charter members of our Pruppie Club.

The regular prices for the International Club was $497 per year, but during this time of crisis we are dropping member ship to $249 .

I invite you to join those few who will become healthier, wealthier and more fulfilled in the decade ahead.  Become a Pruppie, one of the core persons who will glide through the destruction and be able to help the world restore order.

Ecuador-beach-condos

I’m no builder nor carpenter, but was partly responsible for creating these condos on Ecuador’s coast (above) and in Ecuador’s Andes (below), a decade before this expat community boomedFind out the trick for spotting trends like this early.

Ecuador real estate for sale

As an Elite Pruppie Member, you’ll get INSTANT ACCESS To:

Live Anywhere, Earn Everywhere (a $39.99 value). This 250 page report published in 2016 reveals ways to gain fulfillment doing what you love but how to also include something that will be useful if society and the incredibly intricate weave of the global economy and society fail.

This report has already helped many readers prepare for the pandemic in advance, but it’s not too late. the incredible special opportunities for future profit still exist.

Natural Healing the Shamanic Way (a $59.97 value).  Learn about #1: Nutrition, #2: Purification, #3: Exercise These three reports show how to gain better natural health. The foundation of all fulfillment, contentment, happiness and success is good health. Yet when it comes to health care, we may well be on our own. The way to escape the dangers of the high cost, deteriorating health care system, is to not need it. Declare health independence… and create natural good health. There are dozens of simple, really low costs steps that can improve health… eating, purification, exercise, even the way we think and don’t think when we sleep.

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Because all shares in the Pi portfolio were in non USA stock markets, the return seemed to under perform due to a strong US dollar. Yet the return was still over 10% per annum. Now conditions are set for overperformance in the upcoming years.

 

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gary scott

I have no hatchery but learned how to raise trout like this, for fun, profit and a guaranteed protein supply.  Learn how to turn passions into protein.

THERE’S MORE…

BI-MONTHLY REPORTS. Exclusively for Pruppie Club members. Best practices to prosper, unique opportunities, and better ways to survive the economic collapse. The report will feature what other subscribers are doing too. We can all learn from each other.

MONTHLY CONFERENCE CALLS! I will talk about the latest news and trends to help you jump on opportunities. This will not be about the doom and gloom that surrounds you. These one-hour calls are your chance to ask questions and share ideas too. ONLY Pruppie members will have access to the replay of all conference calls.

TWO BONUS REPORTS: Five Ways to Make Money With Real Estate Even You Don’t Have Any Cash or Credit eBook. The techniques in this ebook could help you make $3,000 to $5000 per month without a job. 



This bonus is Jackie Lange’s ebook on how to generate cash without a big investment.

Jackie’s book is a step-by-step guide for making money with real estate with less than $10 invested, not buying the house, and no repairs….yet still making at least $5000.

She made $30,000 in three days on her last flip deal.

Even if people don’t want to make a business out of this, it is a fast, low-risk way to generate cash

Fund Your Freedom Overseas eBook – Learn how to make money working from your home anywhere in the world. These are all location independent business ideas.

jackie

GET READY!

Enormous, economic, social, political and productivity change was already in the process.  The pandemic however has accelerated and accentuated the process. You still have time to join the few who are left standing from the 2020 disaster.

You still have time to become one who will prosper during the 2020 decade. You can be one of a small elite group who will be able to help restore a healthy world order. The world will be very different from what we have known for the past seventy years, but when looked at in a framework of longer history… it’s the same old tale.

The last couple of millennia are filled with stories of empires rising and falling.  There are basic conditions in each of these tales.

  • First the idea of debt loses its real meaning and rising to levels that are unsustainable.
  • Interest rates charged for debt fall to extremely low levels so the idea of investing for a known amount stops making sense.
  • Central monetary authorities replace innovation and increased productivity as activators of the economy.
  • Disparity of wealth widens dramatically and the spread increases.
  • There is so much divisiveness in politics within countries that social and political conflicts spiral.

We’re seeing these changes rapidly happening now!

Fwd: gary-scott-tipis

I learned how to turn land into income producing property cheap and cashed in on the glamping craze a decade before the word was invented.  I want to share this trick with you.

Social and economic deterioration restricts safety, lifestyle, well-being and peace of mind. Social and economic shifts of this nature reduce the purchasing power of income.

Inflation, for example puts pensions and savings at risk. 

Growing deception allows manipulation of medical care, finances, the value of homes, how cars are bought, the price of gas, the education and raising of children, the food we buy and eat, the shows watched and the ways we work and play.

A very large and growing part of the public throughout the Western world no longer believes in the integrity of local or national government, law enforcement, health care, banking, pensions, legal systems, educational processes, media or church, just to name a few.

However, mistrust of anything authorities say has become so deeply rooted that even health assurances as serious as the pandemic have not been believed.

I invite you to join Merri and me in expecting the world to get better… to live and earn based on that expectation but…  to also prepare for bad times as well as good.  Just in case… the world goes sideways… we will still survive and prosper.

We do not give up anything much.  We can enjoy the good parts of the new economy, as we protect ourselves from what can be bad.

Let me be clear.  I expect that the world will get better, at least for the few who adapt and avoid the dangers that the changes from the COVID pandemic will bring.

The wealth of the world, albeit with inequality, will continue to grow.  This collapse of the global economy will bring an incredible new opportunity for those who know what to do.  These profit making avenues offer enormous income potential and even work well in disaster scenarios. Join the Pruppie Club so you can wake up every day knowing that you are prepared and in charge of your destiny.

gary scott

I’m no doctor but have learned how to avoid and survive the excessively expensive western health system and its hidden agendas.  See a simple $19.95 trick  used when the COVID-`19 symptoms appeared.

JOIN the PRUPPIE CLUB HERE.  $249  and $99 a year automatic renewal, but you can cancel at any time.