“Wealth is never destroyed, it’s merely transferred”
It’s a saying that could relate to many, only to most of them it does not make much sense. For starters, money is not wealth. Instead, it’s a vessel used to store wealth which emphasis the point Wealth is never lost, instead, it’s only transferred’
We are in crisis and in an event of every crisis, there is always an opportunity. When you don’t buy a non-necessity, there is someone else who loses their job. As a result, they can’t afford to get services or products you get money from. At the end of the day, you still spend money on things like sanitizers that you only need due to the Covid19 pandemic.
Fun fact; only gold and silver have maintained their purchasing power for an estimated time of over 5000 years.
Unlike money, the government cannot control how much of it is in the market like they do with money. You can’t print gold as you do with money.
According to Richard Doughty, there is absolutely no currency that has ever survived in the history of mankind.
“Every one of them went to zero… 600 fiat currencies that start with letter A and half the ones stating with letter B are 600 of these things… you think this one, the US dollar is gonna be the first one? After all that? I don’t think so. No fiat currency has ever survived”
According to Richard, the 600 fiat currency were those starting with letter A and some with letter B. that number does not include the lest of alphabetical numbers.
Another fun fact: the dollar has lost 95% of the purchasing power since the Federal Reserve was introduced earlier in 1913
Money is just a representation of wealth. You need money to get purchase or attain wealth. Money was introduced to ease trading since it pertains to durability, portability, Divisibility and, fungible.
Modern Wealth Devaluation
The government should get money from the citizens through taxes. However, since thousands of years ago, the government has been taking wealth directly from its subjects. Ages ago, if the government decided they needed a piece of property you owed such as land, all they did was take it and nobody would do anything about it.
Things are the same only the modern government has evolved and uses manipulation to steal from its subjects. Unlike the ancient time when rulers just took your asset no questions asked, they now print money whenever they want. This, however, devalues what is in people’s pockets simply because wealth can not be created.
In the 2008 crisis governments printed money to cater to the needs they could not afford due to reduced taxes. As a result, there was so much inflation worldwide k=like never before lifestyle became more expensive than people could afford.
Currently, the world is going into a recession. The US government alone printed $6B in the form of a stimulus package to help with the Covid19 crisis. Automatically, prices will go up to accommodate every single cent of this money since money is a representation of wealth. After all, nobody can print more land than there is in the world.