How to Beat Inflation: Conquering the Silent Killer Tax

When you see a worthy person, endeavor to emulate him. When you see an unworthy person, then examine your inner self. Confucius,BC 551-479, Chinese Ethical Teacher, Philosopher

How To Beat Inflation: Strategies to Escape the Economic Stranglehold

Updated March 8, 2024

In the world of economic warfare, inflation stands as a formidable foe, a Machiavellian force that strikes at the very heart of the common man’s well-being. The slugs of the central banking system, those greedy and calculating overlords, wield this insidious weapon with ruthless precision, cloaking their true intentions behind a veil of clever wordplay and obfuscation.

As the great cynic Charlie Munger once quipped, “Show me the incentive, and I’ll show you the outcome.” The incentive for these financial puppeteers is as clear as the glint of gold in their avaricious eyes: to inflate the money supply while suppressing the costs of essential goods, thereby ensuring that the average Joe remains blissfully ignorant of their nefarious machinations.

Through the deployment of heavy subsidies, these masters of deception manipulate the prices of everyday commodities, creating an illusion of stability that lulls the masses into a false sense of security. Meanwhile, the true cost of living continues to rise, eroding the purchasing power of the common man’s hard-earned wages like a relentless tide consuming the shoreline.

Yet, amidst this economic quagmire, there exists a glimmer of hope for those bold enough to embrace the teachings of the great philosophers. Machiavelli, that cunning observer of human nature, would no doubt counsel us to meet deception with cunning to outmanoeuvre the central bankers at their own game. And who better to guide us through this labyrinth of financial trickery than the acid-tongued wit of [insert name of another sarcastic philosopher or writer], whose biting commentary would surely expose the hypocrisy and greed that fuel this inflationary engine?

For the astute investor and trader, the challenge lies in identifying those investments that not only outpace the relentless march of inflation but also serve as a bulwark against the machinations of the central banking cabal. This quest demands unwavering vigilance, a keen eye for opportunity, and a willingness to embrace the unconventional—for in this economic battlefield, only the bold and the cunning shall emerge victorious.

Crush Inflation: Unleashing Strategies for Financial Dominance

In the immortal words of Warren Buffett, “The investor of today does not profit from yesterday’s growth.” And so it is with the insidious scourge of inflation, a silent assassin that strikes at the very heart of our economic well-being. For the poor and the unprepared, inflation is a merciless oppressor, a force that relentlessly drags them down the ranks of society, eroding their purchasing power and leaving them to watch helplessly as the rich grow ever richer.

The greedy slugs that infest the hallowed halls of the banking system are the true architects of this economic calamity. With malice aforethought, they unleash their inflationary tactics, designed not to spread the wealth equally, but to concentrate it in the hands of the privileged few. As the great Jesse Livermore once observed, “Wall Street never changes, the pockets change, the suckers change, the lies never change.”

These central bankers, these modern-day alchemists, conjure new money from thin air only to hoard it for themselves and their cronies. The result is a perverse game of musical chairs, where the unsuspecting masses are left to scramble for the dwindling resources, their once-full purses now reduced to mere scraps. At the same time, the prices of goods rise unevenly, like a grotesque fun-house mirror distorting the very fabric of our economic reality.

Investors can use age-old wisdom to navigate the chaos and make smart decisions. As the indomitable John Paulson once proclaimed, “Fortunes are made by buying something of extraordinary value at a time when nobody else wants it.” This contrarian mindset, this willingness to think outside the box, holds the key to beating inflation at its own game.

Channeling the spirit of Benjamin Graham

The father of value investing, Benjamin Graham, would no doubt counsel us to seek out those investments that offer actual intrinsic value, those rare gems that shine brightly even in the darkest of economic storms. In these moments of crisis, when fear and uncertainty reign supreme, the truly astute investor can find the most incredible opportunities.

Graham’s timeless principles, rooted in disciplined analysis and unwavering patience, provide a roadmap for navigating the treacherous landscape of inflationary pressures. By embracing his teachings, we can learn to identify those companies and assets that possess the resilience and fundamental strength to withstand the ravages of rising prices, emerging not as victims but as victors in the eternal struggle against economic entropy.

The Beneficiaries of Inflation’s Bounty

In economics, few forces are as divisive and polarizing as inflation. To some, it is a scourge, a silent thief that robs the unwary of their hard-earned wealth. To others, however, it is a golden opportunity, a chance to ride the wave of rising prices and emerge victorious. As the legendary investor John Templeton once quipped, “The four most expensive words in the English language are ‘This time it’s different.'” And indeed, in the face of inflation, those who cling to outdated notions of financial security are doomed to be left behind.

The Real Estate Magnates

However, those who have invested in real estate are well-positioned to reap the rewards of inflation’s relentless march. As the great Andrew Carnegie once observed, “Ninety per cent of all millionaires become so through owning real estate.” And in times of rising prices, the value of their holdings soars, propelled by the very forces that threaten to erode the wealth of others. **The astute real estate investor understands that inflation is not a foe to be feared but a powerful ally to be harnessed and exploited.**

Consider the landlord, whose rental income rises in lockstep with the cost of living, ensuring a steady stream of revenue that outpaces the erosion of the dollar’s purchasing power. Or the developer, whose newly constructed properties command ever-higher prices, fueled by the insatiable demand for housing in an inflationary environment. These are the actual beneficiaries of inflation’s bounty, the visionaries who have recognized the enduring value of bricks and mortar in a world where paper currency is but a fleeting illusion.

The Stock Market Savants

But real estate is not the only bastion of opportunity in the face of rising prices. The stock market, too, offers a refuge for those with the foresight to navigate its turbulent waters. As the legendary Jesse Livermore once observed, “Wall Street never changes, the pockets change, the suckers change, the lies never change.” **And in the midst of inflation, it is those who have heeded the wisdom of the masters who will emerge victorious, their portfolios swollen with the spoils of their prescience.**

It is in times of economic upheaval that the true value of a company is laid bare, its resilience and adaptability tested against the crucible of adversity. The astute investor, guided by the principles of value investing espoused by the great Benjamin Graham, will seek out those enterprises whose intrinsic worth transcends the fleeting vagaries of the market and whose fundamentals are rooted in the bedrock of sound management and sustainable growth. These are the companies that will not merely survive inflation, but thrive in its wake, their shares rising like phoenixes from the ashes of economic uncertainty.

The Pragmatist’s Perspective

In economics, few topics elicit as much passion and controversy as inflation. To some, it is a scourge, a force of destruction that must be eradicated at all costs. To others, it is a necessary evil, a byproduct of economic growth and progress. However, for the truly pragmatic, the question is not one of condemnation or celebration, but rather of adaptation and survival.

As the legendary investor Sir John Templeton once observed, “The four most expensive words in the English language are ‘This time it’s different.'” **And indeed, the harsh reality is that inflation is a constant, an ever-present force that has shaped the course of human civilization since the dawn of commerce.** To rail against it is to tilt at windmills, to expend precious energy on a battle that cannot be won.

Instead, the wise investor embraces the wisdom of the ages, heeding the counsel of those who have navigated the treacherous waters of economic upheaval and emerged victorious. For it is in the teachings of the masters that we find the keys to not only surviving inflation but thriving in its wake.

The Contrarian’s Creed

As the indomitable Jesse Livermore once proclaimed, “Wall Street never changes, the pockets change, the suckers change, the lies never change.” **In these words, we find a clarion call to reject the herd mentality and embrace the contrarian mindset that separates the truly successful from the masses.** For it is in times of crisis and uncertainty that the most fantastic opportunities arise, when the fearful retreat and the bold advance seizing the spoils of their courage and foresight.

The astute investor, guided by the principles of value investing espoused by the great Benjamin Graham, will seek out those enterprises whose intrinsic worth transcends the fleeting vagaries of the market and whose fundamentals are rooted in the bedrock of sound management and sustainable growth. **These companies will not merely survive inflation but thrive in its wake, their shares rising like phoenixes from the ashes of economic uncertainty.**

The Pragmatist’s Playbook

But to truly conquer inflation, one must embrace a diversified approach, a portfolio that spans the breadth of asset classes and investment strategies. As the legendary Andrew Carnegie once observed, “Ninety per cent of all millionaires become so through owning real estate.” **In times of rising prices, the value of real estate holdings soars, propelled by the forces that threaten to erode the wealth of others.**

Let us not forget the enduring allure of precious metals, those timeless bastions of value that have weathered the storms of economic turmoil for millennia. As the central bankers unleash their inflationary policies, the astute investor will seek refuge in the gleaming embrace of gold, silver, and their precious kin, whose worth is not tethered to the whims of fiat currency but to the immutable laws of scarcity and demand.

Ultimately, the true pragmatist understands that inflation is neither friend nor foe but a force of nature to be reckoned with, a challenge to be met with resilience, adaptability, and an unwavering commitment to the principles that have guided the masters of finance through the ages. For it is only by embracing this mindset that one can truly conquer the scourge of inflation, emerging not as a victim but as a victor in the eternal struggle for economic prosperity.

Next, to inflation, majority rule is the most ingenious scheme ever contrived by the government. Most people have never dared to question the basic morality or logic in the assumption that the majority should have power over the minority. A majority of the people in the South once believed in black slavery. Did that make it moral? A lynch mob is majority rule stripped of its fancy trappings and its facade of respectability. In a community where homosexuals outnumber heterosexuals, should the majority have the right to outlaw sex between married partners of the opposite sex? In a community where atheists outnumber non- atheists, should the majority have the right to outlaw the practice of religion? … a dictatorship allows only a small number of people to interfere with the rights of others, a democracy makes it possible for great numbers of people to impose their will on others — through the force of government. Is an act of aggression more right if carried out by the majority than by a dictator? Since approximately half, the eligible voters vote this means that approximately 75% of the people are ruled by 25% of the people. Robert J. Ringer, American Writer