A message to my friends.

We are all victims of the biggest wealth transfer in history. The regular person works their entire lives and saves, maybe buys a house if they try hard enough whilst the money they save in is constantly losing purchasing power. Right now, in 2025, people (Millennials especially) feel like they just ‘cannot get ahead’. This is because of the monetary system and inflation itself.

Saving dollars in cash or in your bank account really doesn’t make a difference. There isn’t ever going to be some situation where the banks ‘turn off’ the system and we cannot access our accounts etc. People for some reason think that this is what is going to happen and maybe they should save in cash and keep cash on them.

The system relies on us earning our pay checks, storing it in our bank accounts and using it in the system. They aren’t going to take our bank accounts away from us. And if there is a ‘run on the banks’, the government will just bail them out like in 2009. The most likely scenario that we will see in our lifetime is hyperinflation, which to be honest is even worse than the ‘computers turning off’.

In recent times both Venezuela and Zimbabwe have experienced hyperinflation, and it hurt the regular person the most. This saw massive immigration out of both countries, crime and violence skyrocket and just became generally a terrible place to be at the time.

The US dollar has lost 99% of its purchasing power since 1912 i.e. $1USD in 1912 could buy you the same amount of stuff as $99USD today. And the US dollar is probably the best performing FIAT currency of all time and has not experienced hyperinflation. Conversely, the price of a cow when bought with gold costs the same amount today as it did 7000 years ago (ancient Mesopotamia).

So, if a “good” FIAT currency loses 99% of it’s purchasing power over a hundred years. What hope do we have with the FIAT system we are in now.

Historically, what wealthy people do to escape inflation is to store their money in assets (houses, gold, fine art) because the dollar is constantly losing purchasing power. Saving money in dollars is never going to get you out of debt slavery, regardless of what job and/or career you have. Investing is the best way to use your money earnt for the future.

Okay but what to invest in?

Traditional finance suggests gold, stocks and houses. Take the S & P 500, Probably one of the best traditional assets that exists. Over the last 20 years it has seen an 11% annualised return on average.

In Australia the price of fuel has gone from $1.30 to $ 1.60 in the last ten years. A hike of 20% which is in line with government estimates of CPI (1.837%).

The Median house price in Australia was $604,700 in 2015. Now, in 2025 it is $1.1 million. That is an increase of 45% over ten years. Which is a 3.78% increase per year after compounding.

But simply put, our wage growth just cannot keep up with inflation (especially in Australia). The median house price is 16x the median income at the time of writing this by my calculations. Although actual experts say it is more like 20x after all expenses are taken into account.

And then something happened in 2020, and the governments around the world printed so much money out of thin air that this ‘acceptable’ inflationary system we lived in totally changed. They broke the system. And there will have to be a correction one day because of it.

If only there was something out there that existed that we could invest our money into that would protect our hard earned money against this inflationary system…

Just my 2c. Jesse.

8/10/25