We have never seen anything like this!
We just increased money supply over 33% and set to increase it over 50% by the end of the year!
This means that your dollars are likely drop significantly in value over the next 2-5 years.
What can you do to combat this massive inflation that is on it’s way?
Buy inflation hedged assets.
If you want to further grow your wealth during a time of massive inflation, you can take our credit and buy assets. When the value of the dollar decreases, you can sell the assets back into dollars, pay back the credit and be left with a nice profit!
If you want to learn and most importantly implement these concepts, click the link below to join a network of over 350+ entrepreneurs all leveraging credit to create income and wealth: https://info.0percent.com/fia-vsl
What is going on guys! Jeff “0%” Sekinger here with a simple message and that is to get out of cash and get more credit and why you may be asking because we just had the biggest liquidity crisis in the history of the world okay with a pandemic we saw the biggest drop in stock market history.
Everyone was selling all of their assets freaking out because they didn’t know what was going to happen so they wanted more cash right everyone was holding on to their cash so what did our the us government do in the federal reserve do they printed more money a ridiculous amount and I’m going to go into why that was good in the short term but how that’s bad in the long term and what you actually need to do.
So right here you can see this is what the wealthy understand okay they understand this thing called inflation so you can see right here the u.s dollar has fallen by a value of 97 since 1913 okay. So that means if you had a dollar in 1913 is actually worth three percent of the value that it was worth in 1913 just about 100 years ago and why is that a big deal.
Well the wealthy and the rich continue to get wealthier and richer and the wealth gap continues to grow because the low and middle class don’t understand how they need to get out of cash and into assets because assets appreciate and cash depreciates and it’s designed like this for a reason because if the us dollar just kept increasing in value if it was deflationary instead of inflationary people would just hold on to their money okay.
We don’t want that we want the economy to grow we want people getting rid of their money so if you know hey my money is falling in value every you know two to three percent a year which is the target inflation here in the united states then guess what you want to get rid of your cash you want to go spend your cash so that you’re not losing three percent a year okay.
So that is great if you understand this fact but it’s also scary because you can see right here with what happened in the stock market okay we had the biggest drop in stock market history and then we had this v-shape recovery that was crazy we’ve never seen anything like this and now we’re hitting all-time highs again.
Why you may be asking because when the federal reserve actually prints money okay they don’t just print money and go to a circus and start handing it out or just hand it to people on the streets they first of all they they issue it in the form of stimulus packages to businesses and also individuals and then also the majority of the cash they print they buy financial assets so in them it’s mostly bonds and treasuries.
So what they do is they will buy these bonds and treasuries and that money flows into the stock market so that’s why we saw such a crazy v-shape recovery shown in this graph right here okay. So you need to understand that the stock market we never seen such a terrible economy with how many jobs we just lost how many businesses are going uh under how many foreclosures we have it’s insane what is going on and we’re hitting all-time highs it’s artificial okay because we just printed so much money.
How much money did we just print we just printed over 33% shown right here in this Forbes article 33% increase in money supply okay the total amount of money that we’ve ever had in the united states we just increased that by 33% one-third and if you annualized that that’s over a hundred percent increase okay.
We’re about to come out with more stimulus packages things are not getting better I mean I live here in the state of California and we still don’t even have gyms open we can’t even eat inside restaurants I know uh almost every single club and bar has gone out of business here that’s downtown.
I think there’s like one that hasn’t gone under up in La Hoya so businesses are closing like crazy and the ones that are staying alive are barely getting by so uh you know any retail business they’re struggling and it’s honestly pretty sad to see.
So the fact of the matter is things are bad but they look good because it’s artificial so what what’s gonna happen from here okay. If you understand anything about economics this is how the price is determined in any product or service and that is supply and demand okay.
So what happens when demand stays stagnant and supply increases or demand you know relative doesn’t move nearly as much supply. Any time supply increases and uh in a rate that exceeds demand increase then the value of that product or service goes down right so we just had a huge pandemic like I said it was a liquidity crisis.
So everyone wanted more cash okay so everyone wanted more us dollars so people sold assets got more cash and now we printed so much more cash now over the next two to five years that money supply is going to trickle down into inflation okay.
So what’s going to happen to your dollars? They’re going to fall drastically we can’t say exactly how much you’re probably asking okay they’re going to fall 33 just like you know the the Forbes article said that um that our the inflation rate’s going to be no we can’t say it’s going to fall 33 because we don’t we can’t properly predict demand in two to five years but we do know that an excess of printing of dollars is never good okay.
So the dollar is going to fall in value there’s no way around it it’s basic economics it’s the principle of economics and price okay so the supply has increased a ridiculous amount. So what do you need to do? Get out of cash and get more credit and why because when you get out of cash okay you need to get into something called inflation-hedged assets okay.
That is things such as bitcoin that’s things such as real estate, you could go buy some watches you could go buy gold that’s why gold is hitting all-time highs okay that’s why bitcoin is exploding right now, that’s why people are starting to buy real estate the smart money is starting to roll into real estate because it’s under priced right now and also they just want an inflation hedge.
So you need to get out of cash and into inflation hedged assets okay or you’re going to get crushed and this is why the wealth gap like I said gets ginormous because the poor middle class don’t understand this. They just keep they’re either unbanked or they just keep all their money in cash because they’re not educated whatsoever and they continually aren’t educated so they just hold their cash and then every year you know three per the deadly inflation three percent a year just eats away at their cash and now it’s going to be much much worse over the next two to five years because of this jurassic increase and once this new stimulus comes out who knows we’ll probably be up over 50 increase in money supply.
Alright so I’m not saying this to scare you I’m saying this to educate you guys in hopes that you’ll listen and get into some inflation hedge assets such as real estate, bitcoin, precious metals anything that’s limited in supply okay there’s only so much real estate on planet earth that’s why it’s deflationary same with bitcoin there’s only 21 million bitcoin ever going to be produced okay.
There’s only 21 million that’s deflationary okay same thing with precious metals there’s a limited supply so you need to get into things that have a limited supply that are going to go up in value or at least stay at their current value okay and now why would you get credit?
Well, let’s think about this first of all that’s another thing that the poor middle class don’t understand is debt is non-taxable okay you don’t get taxed on debt okay it’s not a form of income and then you also write off the interest expense on debt so what the wealthy people do okay they get a bunch of assets they buy real estate they put a bunch of money in a brokerage account they get a securities based line of credit or a heloc against their house.
And then guess what they can use that line of credit to go purchase assets and they write off the interest expense so they don’t have to actually liquidate the investments and realize a capital gain and then lose at least 20 percent long-term capital gains to taxes okay the taxes are our number one expense in life all right you need to find ways to legally avoid them.
That’s why the wealthiest people in the world leverage debt and that’s why I love debt because debt is tax-free okay you need to know these things so what would you want to do right now okay let’s say you pull out a hundred thousand dollars okay in a line of credit or let’s just say it’s a term loan all right the term loan gets deposited in your bank account a hundred thousand dollars.
You go and purchase a property for a hundred thousand dollars right so you use that credit as you know the down payment you leverage a mortgage you buy the property okay let’s say it’s a seller finance deal right it’s uh you know a million dollars you put 10 down you use the credit to put the 10 percent down.
So you buy this house over here right so then you’re using the credit but guess what the purchasing power over the next two to five years is going to fall for the us dollar but your house is going to stay there so let’s say you bought that house for like I said a million dollars okay and you use 100k and credit for the down payment then guess what you do okay the value of the dollar excuse me the value of the dollar falls and then you would sell that asset two to five years later whenever you decide okay.
And let’s say the house the house doesn’t actually go up in value the house just stays the same but the denominator is denominated in u.s dollars the denominator falls in value then you sell the house and now it’s worth 1.2 because inflation just caused a 20 uh decrease in the purchasing power of the dollar and that’s how you get ahead you could leverage debt and take out credit right now because the value of the dollar is high right and then once the value of the dollar falls then we sell the asset back into dollars.
And that’s how you get ahead okay that’s how you you skip the opportunity cost of everything that’s going to happen with you keeping your money in your bank account all right. I hope you got value from this video let me know what you think here below I can tell you I am doing these things we buy a real estate deal every two to three weeks.
I put a ridiculous amount of money into bitcoin and into my hedge fund. I put my money where my mouth is and that’s also why I bought you know my first like really expensive watch because I know I’m not gonna lose more than one to two thousand dollars in this and I also know that if I just kept that money sitting in my bank account guess what it’s gonna drop in value significantly over the next two to five years.
I don’t know the exact amount it’s going to fall in value but you need to know what is happening so that you can make the proper proper moves in order to get ahead all right. Hope you got value from this video let me know in the comments below please hit the like button if you get consistent value for my channel I would greatly appreciate you hitting the subscribe button. I’ll see you here on this next video.