Dangers of Inflation Unveiled: Navigating Upheaval and Change

The Hidden Risks: Navigating the Dangers of Inflation in an Uncertain Economy

Updated July 2023

Hyperinflation and the changes it will generate Part II is the second part of this two-part series. The first part of the series was called Hyperinflation Part 1

Continuing from Part 1 of this series, if you have not read the 1st part, please click on the following link Hyperinflation Part 1

Energizing the Workforce: Unleashing Job Potential in Power Grid Maintenance

Maintaining and upgrading the power grid is a sector that will offer numerous well-paying jobs. Currently, utilities face a shortage of qualified field personnel with the skills to install and maintain power lines. When the United States finally decides to upgrade its deteriorating and ageing power grid, the demand for skilled labour will significantly increase. Almost every aspect involving electricity will thrive, although certain positions, such as engineering roles, may require a degree. However, for field workers responsible for repairing and installing power lines, formal degrees are unnecessary, and their wages can reach upwards of $50 per hour.

There are several reasons why this upcoming hyperinflationary cycle may be more severe and distinctive than previous cycles, as mentioned in the March 24th update.

The Credit Dependency Crisis: Breaking Free from the Illusion of Affluence

One of the primary reasons for the worsening situation is related to the individuals themselves. Today’s individuals have grown accustomed to relying on credit, purchasing items they cannot afford, and mistakenly believing that they deserve a lavish lifestyle despite having modest incomes at best. In the past, buying something beyond one’s means was considered imprudent, but nowadays, buying on credit is perceived as trendy.

This kind of mentality can only be shattered and disrupted through forceful measures and substantial hardships. Unfortunately, this is precisely what awaits us in the years to come. For those who have lived within their means or followed our advice by embracing a lifestyle that is one or two standards below their actual means, the transition will be relatively smooth. They will have numerous opportunities to invest surplus funds into promising ventures. However, for others, this period can potentially become their worst nightmare.

Securing the Future: Investing in Land as a Strategic Asset

Any assets that require cultivation, creation from scratch, or excavation will experience a rise in value. Therefore, owning a parcel of land, particularly lots ranging from ½ to 5 acres, maybe a wise long-term investment. We are not suggesting farming but rather recognizing the value of land ownership.

Companies will continue to downsize even after the economy begins to recover. Corporations tend to react sluggishly, only initiating layoffs when the situation deteriorates from bad to worse, becoming utterly unbearable. Ideally, they should have started cutting back on expenses as soon as the economic outlook began to dim. This trend of mass layoffs sets off a chain reaction. When 5,000 workers are let go in one city, fewer people dine out, leading to potential closures or downsizing of restaurants. Consequently, this downturn affects car dealerships, dry cleaners, and other businesses, resulting in a much larger overall loss.

Navigating the Investment Landscape: Balancing Fear and Euphoria

During periods of fear, reactions are more pronounced than during times of euphoria. Therefore, when companies downsize, they do so at twice the rate they hired during prosperous times. However, this does not mean the situation will be utterly dire without any glimmer of hope. Consider the following analogy: when you purchase a car, you know that at some point, you may encounter a problem like a flat tire or something worse. You can either do nothing and be unprepared or ensure that your spare tire is properly inflated and you have the necessary tools to change it. Additionally, you can obtain roadside insurance to cover breakdowns, ensuring that towing fees are either free or reasonably priced.

You can also have a mechanic inspect your car before embarking on a long trip, taking preventative measures. By doing so, even if something goes wrong, you are prepared, while someone who is unprepared will face significant difficulties. Similarly, the impending hyperinflationary phase should not be perceived as a disaster but rather as a monumental opportunity for those who are prepared. Approach it with open eyes rather than closed ones, and you will be astounded by the opportunities that will present themselves in the future.

Here are some methods to safeguard or hedge oneself against the impending hyperinflationary phase:

Solution 1: Safeguarding Against the Dangers of Inflation in Troubled Times

Among the solutions listed below, our top preferences include Palladium, Silver, and Gold. As a hedge, you might consider one or two Asian Currencies, but it’s advisable to wait until the Yen tests its 2022 lows before investing in these currencies, and it’s recommended to do so in smaller amounts.

1. For those who are unable or unwilling to travel, investing via currency ETFs is a simple and convenient option. Here are some currency ETFs to consider:
– FXY: Japanese Yen
– FXF: Swiss Franc
– FXE: Euro
– FXC: Canadian Dollar
– FXA: Australian Dollar
– FXS: Swedish Krona

Another option is to open a PayPal account, fund it, and activate the currency option feature. Currently, they offer the Euro, Canadian dollar, Swiss Franc, and British Pound.

In Asia, we favour the Japanese Yen, and this is discussed in more detail here: The Yen ETF: A Screaming Buy for Long-Term Investors.

It is important to note that these suggestions are not financial advice, and consulting with a professional financial advisor is recommended before making investment decisions.

Battle Against The Dangers of Inflation: Solution 2

In addition to the previously mentioned methods, allocating a portion of your funds towards hard assets such as gold, silver, and palladium bullion is advisable. It is important to note that these investments should not constitute your entire portfolio but rather a diversification strategy. Here are some considerations for each metal:

1. Palladium bullion is currently an attractive long-term investment, particularly within the price range of the 1200-1300 ranges. It remains a favourable buy up to 1500.

2. Silver presents an excellent buying opportunity within the range of 19.00 to 21.00 range. It is a great buy in the 15.50 to 16.50 range

3. Gold would be an excellent buy if it experiences a dip into the 1650 to 1750 range. It is still considered a good buy up to the 1830 range.

However, exercising caution and conducting thorough research is crucial before investing in hard assets. It is also worth considering other tangible assets such as farmland or antiques. If you decide to explore antiques as an investment, ensure you have sufficient knowledge in the field or work with an expert to avoid potential pitfalls.

Moreover, investing a small portion of your portfolio in old valuable coins trading close to the bullion price is worth it. Examples of such coins include Austrian 100 Coronas and $20 St Gaudens. Over time, these numismatic coins are expected to appreciate faster than gold bullion. At the peak, the difference in value between bullion and numismatic coins could potentially reach as high as 500%.

Again, it is crucial to note that these recommendations are not financial advice, and consulting with a professional financial advisor is recommended before making investment decisions.

Fight Against the Dangers of Inflation: Solution 3

It is advisable to allocate a portion of your funds into stocks, particularly those in the commodities sector. Stocks related to commodities such as oil, uranium, natural gas, gold, palladium, silver, and others are expected to experience significant growth in the future, potentially creating opportunities for wealth accumulation.

Considering the anticipated hyperinflationary environment in the near future, holding onto cash may not be a prudent strategy. Therefore, it is recommended to allocate a smaller portion of your capital to Solution 1 (money) and a more significant portion to Solution 2 (hard assets like bullion, farmland, antiques) and Solution 3 (stocks in the commodities sector).

By diversifying your investments across different solutions, you can mitigate risks and potentially benefit from the expected growth and opportunities in the commodities sector.

Exploring Emerging Trends: Drug Use, Educational Shifts, and Professional Challenges

During times of extreme hardship, it is possible that people may seek outlets, and there could be an increase in recreational drug use. It is speculated that drugs like ecstasy may experience a resurgence or new and potentially stronger substances may emerge in the market. Generally, drug usage may rise as individuals seek means to escape reality. However, it is essential to approach this topic cautiously and consider the legal and health implications of drug use.

Regarding the potential “recreational drug index,” it is essential to note that promoting or investing in illegal activities is against ethical and legal guidelines. It is advisable to focus on legal and ethical investment opportunities.

In education, the rising cost of education and limited job prospects in certain areas such as law, investment banking, and potentially the medical sector may lead to significant changes. Colleges and universities may need to cut back on courses, increase class sizes, and make cost-cutting measures. Some institutions may even face the risk of closure.

Professions such as lawyers, doctors, investment bankers, and individuals in the financial sector may face challenges. The legal industry, for example, may experience a decline in clients as lawsuits become less common. Hospitals may meet reduced patient payments, and the rise of medical tourism could pose a significant threat as people seek more affordable treatment options abroad.

It’s essential to approach these predictions and assessments critically and seek professional advice when making investments, career choices, or personal well-being decisions.

Conclusion

It is said that individuals need to be taught a hard lesson to appreciate what they have and prevent them from repeating the mistakes that got them in the first place. This might be true for, say, perhaps one generation and maybe if you push it to two generations. The majority is ruled by greed and fear and will continue for the foreseeable future. We had so many boom and bust situations, some extremely bad, some mediocre and some in between, but despite this, humans continue to repeat the same mistakes repeatedly.

The current disaster and the coming hyperinflationary disaster will, at most, teach only those that experienced it a lesson unless, of course, parents sit down and carefully explain to their kids what occurred and teach them the value of saving and living within their means; some will do this but the majority will not.

Thus do not waste time or energy thinking that this or any disaster will bring about long-term change; it will not. Ultimately, we can only change ourselves, but most think they can change another without trying to work on themselves first. Changing oneself is tough; trying to change another without understanding oneself is a mission destined for monumental failure.

The reason humanity has not learnt anything from its past lessons is simple (the message here is esoteric, one needs to take the time to understand it, for simply handing it out will be of no use, remember nothing good comes easily if it does, it was not worth much in the first place) is because humans fail to understand one thing; this one thing is that the majority can do nothing. What do we mean by this?

To do, one must see; to see, one must know what to look for, so how can one do when one does not see, worse yet even when one thinks that they know the answer, they are usually looking a the wrong picture, for they have no concept of what they should be looking for.

Thus trying to do without knowing what you are looking for or what you are looking at results in nothing. If every individual took the time to understand how they function truly, they would, in turn, gather valuable data in terms of how others function. A lifetime is spent just telling others what to do; very little is spent telling oneself what to do and how to do it.

To show you how incapable we are of doing anything, list everything you would like to do next week and then try to do it 99% of the time. You will find you have a tough time fulfilling even half of everything you put on that list.

Another enjoyable task is to sit down and try to remember in detail what you did the week before; here, 100% will fail unless they have a photographic memory. For most, the whole week will have been just a blur, and all the upcoming weeks will also be blurred.

Thus one can push things even more and ask, are we living or alive? If we were truly alive, why don’t we remember in detail what we have done for just one week of our lives; we must stop here because we are now opening up another can of worms.

To conclude, life in the next 3-6 years will be filled with unprecedented changes; note how fast the world’s economies crashed, one moment, everyone was partying and having a good time, and the next minute, almost everyone was broke. Russian billionaires lit cigars with 500 euro notes in 2007 and early 2008; those same chaps are now crying tears of blood. Extreme extravagance always results in extreme pain.

When you spend money, spend money not to show off but to please yourself, pretend nobody is watching when you are paying, and if you do not feel happier, you are faking it. Most spend to impress others; thus, they get trod upon by these people when they fall and bite the dust.

As we spot changes, we will notify our subscribers of the impending changes and what measures can be taken to protect themselves and one’s assets. Right now, having some money in another country would be wise. Individuals should also invest some of their funds into bullion (Gold, Silver and Palladium). Finally, some money should be put aside and invested in stocks that are primarily in the commodities sector.

As we stated last time, a disaster is nothing but an unprecedented opportunity in disguise; the trick is to keep your eyes wide open and not allow fear to seal them shut. When the streets flow with blood, one finds the biggest and most significant lifetime opportunities. Continue to live 1-2 standards below your means and try to get rid of as much debt as possible.