Inflation
BY PGF2 years, 9 months ago
You don’t understand inflation until you’re in it, and then it’s too late. The Wall Street Journal cites eight or so percent, which is very low compared to actual inflation. It’s much higher; we all know that. Inflation takes years, sometimes decades, to work out and return to the historical norm (under central banking) of 3 to 4 percent annually.
Inflation is not an intellectual exercise, nor is it a mathematical obstacle. This post isn’t a rant against our rulers. We could cite causes and bible verses about a just balance and the duties of those God has placed over our country and the servitude of the debtor, but when inflation hits, none of that helps. All those commandments of God are instruction in righteousness. That having failed, here we are; now you get the lesson the hard way.
If you have debt, it will eat you alive. Preppers have warned you for years to get out of debt. When inflation hits, you have to decide; make the car payment or eat? It’s no joke.
Young families will be facing hard choices very soon. If you own a house, hang on for dear life, it will be your best asset in retirement due to inflation, but you must be out of debt. On the other hand, family comes first. If you sacrifice raising your children to maintain your lifestyle, shame on you. Almost all American families are already doing this. But that’s another topic.
Inflation can wreck your family’s future. If this keeps up, your life is about to change in drastic ways. The stress on families was tremendous in the 1970s; money fights, divorces, bankruptcies, children left to raise themselves; that’s what happened then. You may need to sit your family down and start talking with them now about the choices you could be facing.
You don’t want to look at your children and wonder where their next meal is coming from. That’s what inflation does. There are tens of millions of spoiled rotten children in America who are about to get a wake-up call if this persists. The problem is that they won’t understand why things are changing and why those they could rely upon the most will begin to tell them no, and not just about luxuries. What was every day will be a luxury. What was sufficient enough will become lean. Your children need new shoes, too bad; you can’t buy them, you don’t have the money.
We often hear about the Great Depression, but inflation is as significant, ugly, and disastrous. If you still have debt, you have to act now! A box of mac and cheese is doubling and doubling again right before our eyes. Already, putting gas in a pickup is the same as watching a $100 bill evaporate.
The only tool they have is printing money. Still, the sole remedy for inflation is time, day after day, year after year, trying to break even on payday. Of course, they could cut taxes, but it will be too late by then; half the country already doesn’t work.
If this keeps up, nobody will be the same. You will find your actual socio-economic level the hard way. Then you’ll understand debt and why God calls it slavery. When people can’t afford to buy, companies lay off employees! You can’t find a second job; your wife can’t find a job. Do you see where it goes?
Say you make $75,000 yr. You have $30,000 in car debt, a couple of credit cards and miscellaneous debt of $15,000. This is pretty average in America today. Now, watch your salary drop by 8%(current official rate) on a downward slide. That’s inflation; how can you pay your debts and feed your family with your salary dropping eight percent?
It’s shocking to see people carrying on as though this isn’t happening and as though it won’t get worse. As they say on Wall Street, the trend is your friend. That doesn’t mean that all trends are good; knowing which direction the trend is taking is the key. The direction is toward higher prices across the board. It’s not just gas. Everything takes energy to produce and transport.
If it persists and you’re stretched right now, you’ll break. If you’re only making it right now, you won’t be. If you’re ok right now, it’ll get worse. If you’re out of debt and working, perhaps major purchases should be put on hold. Everything could change tomorrow, but right now, the trend is inflationary.