Is the U.S. dollar losing value? To put it simply, yes. We have never really experienced monetary inflation quite like this before. The federal reserve used to be a sense of security, but how will they handle inflation in these unprecedented times? In this episode, Blake explains what monetary inflation is, what the federal reserve’s role in inflation actually is, and what we should expect to see in the coming months.
Is the U.S. dollar losing value? To put it simply, yes.
We have never really experienced monetary inflation quite like this before.
The federal reserve used to be a sense of security, but how will they handle inflation in these unprecedented times?
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Key Takeaways:
What is inflation? (1:06)
What is monetary inflation? (1:20)
The big question: What should I do with my money right now? (3:37)
What will the Federal Reserve do now? (5:23)
How does inflation affect asset prices? (6:46)
What kind of asset should you go into? (7:45)
Where is the wealth made in a time like this? (9:42)
When should you invest in a 3-dimensional asset? (10:27)
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-- Speak to our team to learn more: https://legacy.boroncap.com/free-call
-- Make sure to subscribe so you never miss an episode!
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- Is the dollar losing value and what does that mean for you? Hello and welcome to the Solomon Investor podcast. I'm your host Blake Templeton, CEO of Boron Capital and today we'll be discussing the Fed's move to stop managing inflation. Why would they quit trying to peg inflation low? And if you've been losing money in this financial chaos, how to have financial peace in this season and still make exponential wealth in return. And if you want the up to date how to navigate your investments like a billionaire, subscribe and hit the like button, for the YouTube algorithm so that we can get this message out to more people. Our mission at Solomon Investor and Boron Capital is to provide you with the most clarity and best investment opportunities in this chaotic world. Okay so a little education if you don't know what inflation is, is simply means that the money that you currently have becomes worth less in what you're trying to buy, because the things that you're buying the price goes up. There's two types of inflation. Let me explain. The first type is supply and demand inflation like where supplies low demand is high, so the price goes up. That's not what we're talking about right now. This is monetary inflation. Simply every single person, every single company in every single country has income, expenses and savings. In a pandemic, in a crisis, in a situation that's unprecedented, they start using income to actually fix those holes. Then their income starts depleting because they're not making enough, not selling enough, not making enough revenue. So now they start tapping into their savings. Unfortunately, they drain their savings. Now they have more expenses, no income, no savings and in comes the Federal Reserve, the Federal Reserve says, hey, everyone needs help. We need to actually help. So we're going to give everyone money. So they start printing money. Now they're not really printing money anymore. This is all electronic zeros, but it's real. And it actually has a consequence. It's called inflation. Now that money is sent out to go fill in all the holes of everyone's boat cause water's coming in. But what that means is is they now have a deficit and the deficit that they've now created creates an increase in the price of all goods and services. So how do you gain stability in your investments when the Federal Reserve has decided, you know what? We're going to let inflation happen. Not only will we let it happen, but we're going to let it happen fast. And then where should you put your money right now? There's been some huge moves in the financial market right now and that's not just the stock market going up and down. You've got Ray Dalio in an article in The Tail saying that inflation is going to rip through the economy like a tornado. Now, what that really means is is that this is unprecedented. This is something we haven't actually experienced before. I mean, the last time we had something substantial like this is in 1933. We had a similar piece of inflation in 2008 that got corrected, but this is something we've never seen before. He's calling this a lost decade, the next 10 years. now everyone, right now what I'm seeing is everyone's scared, panicking or they've numbed out. They've got their money in cash and they're looking, what should I do with my money? Now, the problem is, if you keep your money in cash, you actually are going to lose value, lose money. Why? Because inflation's happening. When your money is neutral and everything around it is going up in cost and you're not making money on your money your money's losing value, which means you're losing money. So that's never a good place to be for a steward and you've got to get your money working for you. So what do you do? Do you go throw your money back in the stock market and just hope everything goes well? Business insider came out with an article that said, you know what? It's overvalued, it's 10% overvalued. It's in a bubble. And it typically turns out to be tiers for investors. Now I'm telling you guys that for six months and multiple of you, when these articles started coming out, you're like, hey, you're right. You're right, you're right. But the market was overvalued. The stock market was overvalued before COVID even happened, 10 to 15% off and on it was already overvalued. So the market now is overvalued. And I would even challenge that it's even more than 10%, the stimulus money that was tossed into the market when GDP is low, when the company's revenues are low and the prices of those stocks are high, does not make any common sense. So no, you don't go throw your money in the stock market. Unemployment continues to be high and unfortunately people are not going back to work in general as they need to, to stimulate the economy, to keep the bubble from forming. Then the Federal Reserve came out and said they're not going to stop inflation anymore. This is a third, only the third policy adjustment in a hundred years. So this is huge. This is a big deal that we've got to actually process because the Federal Reserve used to be the cloak of safety, the protection, and it no longer will be there. So the dollar has been losing value. And the Fed again has said, you know what? We can't stop it. We're not going to try to stop it anymore. We're going to let it roll. So then what's that mean? Is the dollar going to continue losing value? Alright, so real quick I want to know what you think about this. If you think we're going into inflation, then I want to know in the comments. So like this video, and then tell me in the comments, why you think it's going into inflation. And then if you think it's going into deflation, like this video and tell me in the comments, I'm very interested if you think it's going to flip and go the opposite direction. Okay for us to understand what you should do with your money we've got to understand why inflation and the big picture is I'm going to keep it really simple, black and white so it's really easy to understand, but simplicity, the Federal Reserve is up over a barrel. I mean it is upside down. It is like literally against the wall pressed in nowhere else to go. And so when we go to inflation, it lowers the value in the US dollar and they have a lot of debt. So the easiest way for them to try to get out of a situation that they're in is to lower the value of the dollar to pay off their debts easier. So in short inflated dollars means it's cheaper to pay off debts. Inflation also raises asset prices. So when asset prices raised, hey, that's a good for the private market. That means that the values appreciate inside of our investments. So why do assets rise when the US dollar goes down, where should you be investing in those assets? And when should you make your move? So first inflation causes asset values to rise when the US dollar value goes down, because it takes more of the dollars to actually buy that asset. So the more dollars it takes to buy it, the price goes up. It's really good for you and me because we get in now and we buy assets now, and then the inflation value continues to go up. The appreciation continues to go up. So you got to think about where you're at. If you're in the bank again, you're not going to be making money. You're going to be losing money because the price of inflation is going up and the dollar value is still going down. So what kind of assets should you go into? Should you go into bonds? I mean like a fixed rate bond. Well, that's actually not a very good idea at all, because the interest rate is so low the inflation rate is above the interest rate, which means you're at a negative interest rate. You're actually losing money. You're paying taxes on that and then you're losing money in return. You'd be better off sticking it under your mattress. We've talked about the stock market. Is there still some good plays in the stock market? And the answer is no it's volatile, remember, it's over valued. There's already a bubble. I mean, that would be like you going to the store and saying, you know what? This is overvalued. I think I should buy it because, hey, it's going to go up. No, that's a terrible idea. So going into the stock market, it's never a good idea in an inflationary market, especially in an unprecedented one like this, where there's so much volatility and so many things that can actually happen that are not going to be good for a investment that's not tangible. So stock market, eh. What about the bonds? Eh. So then what should you do? Should you go into gold? Again on my last video, if you haven't seen it, go check out my last video. I talk about gold in depth of what you should do with it, and why a Warren Buffet was actually making a move into gold. But in short, no, he was moving into gold for sustainability, not to actually make any money, but he was actually betting that the dollar value would even lose faster than what it's going to. So he was just literally looking somewhere to sit money, to literally go place the money in a holding tank, in a store hold of wealth. Now, is that a good idea for you and me? The answer's absolutely not. We got to make money right now. Inflation's going up. He's looking just to not lose billions, you and I, this is the moment. This is a silver lining moment. This is when the largest wealth transfer will take place and you have got to be a part of it. So what about real estate? All real estate is not equal. However, Solomon Investors invest into the private market, into real estate, into three dimensional assets. Three-dimensional assets in a market like this are pivotal. It's where the wealth is all made. Again, number one, it's God directed. Number two, it's collateralized where we own the territory we control the price, the expenses and the traffic. And then number three, it creates exponential wealth, cashflow and equity. Putting all your eggs in one basket is actually a solid plan for security. If you actually control the actual asset, if you have control of the traffic, the expenses and the income, it is the actual only place you'd want to put all your money. So the question is, when do you actually take your money out of the bank and put it into three dimensional assets? The answer is now, you don't wait. You actually do it now because three-dimensional assets are always ready and the values are always going up and then your US dollar is always going down. So sitting in the bank will not benefit you. You need to put your mind at work right now. Proverbs 11:14 says where there is no guidance people fall, but where there's an abundance of counselors there is safety. Right now is not a time that you should actually be leaning on your own understanding and I'm going to go against the public market, the stock market mentality of advisors and say that those are actually good counselors. That's the volatile market. The councilors that you need to actually be listening to are one, namely those who have a kingdom perspective, who are godly directed, who are listening to the wisdom from the King of Kings. It has nothing to do with me, but all about Him and you need to actually be hearing from the wisdom of God. Solomon Investors listen to the wisdom of God, where God directed and our investments go into a direction that God directs. So that's where the safety comes from. That's where the abundance, that's where the prosperity comes from in the middle of chaos, like our current market right now. If you want to learn how to invest like a billionaire and to truly navigate all the different directions that need to happen right now in your investments, pull out your cell phone and text the word Solomon to 31996. Again, text Solomon to 31996. I'm going to send you an ebook that I have written that has seven key secrets to how the wealthiest people currently today invest their money and make exponential returns. Plus, I'll keep you up to date with our newest investment opportunities and continue to provide you with wealth training. How to think like a billionaire, how to think like King Solomon, and how to navigate your investments in chaotic times. So again, text Solomon the 31996 and if you want more videos just like this, make sure you hit the bell icon so you're notified every single time one comes out and do not be the stubborn person who does not hit the like button. So like this video, smash it, turn it blue, destroy it. Again, that helps in the YouTube algorithm to help get this video out to more people. Again, this is a Solomon Investor podcast. Be blessed and may God be with you in your investments.