A HAWT GOOD MORNING!!! to you all! Yup, It’s boiling in Oregon so I flew down to So. Cal for cooler temps! Huh? It’s boiling down here to.
Free For All Friday Ed-vise today! No pizza tonight. Hanging with my Jitsu group and having some din din with them!
Missed Thursday due to flying. I know, it bummed everyone out. No worries though! More of My Two Cents…Whether You Like it or Not…today!
On the trip down I listened to a podcast that featured Chris Saylor. Saylor is an investor that put a bunch of money into Bitcoin. He brought up some amazing information about economics and cash. Along with what happened with the stimulus stuff and inflation.
See, inflation is about the price of stuff going up. Why are things expensive? Because of the value people place on it. That value goes up (the price) when the item becomes scarce. Why are diamonds expensive? People want them and there aren’t a bunch of them. So, during the lockdown people couldn’t travel (fly) so, the price of tickets went so low because nobody could or would fly. What did they do with that cash? Bought stuff from Amazon. Lots of it.
What was scary and fascinating was that the value of cash (actual dollars) is declining at about 7% a year (could be more. I’ll have to re-listen). What does that mean? It means what you can buy with a twenty dollar bill become less over time. So a mattress full of cash will eventually become, well, just that…a mattress. Why does cash lose its value? Because more gets printed. More cash; less value.
The solution: you have to invest your cash into an asset that will increase in value faster than the cash loses it’s value. So, if your cash is in a savings account at 3% interest (or the .2% interest from Bank of America) you can see it is NOT gaining for you. But the value of the banks stock IS gaining.
I’m just saying
That’s it for today. Take care of yourselves. Check in on each other and remember investing in stocks like beef, chicken, or vegetables will one day make you a bouilionaire. HAHAHAHA…get it?!?