True or False - Chocolate Was Once Money?

The correct answer is true.?Lots of things have served as money throughout history. Cattle, horses, pigs, chickens, seashells, cod, butter.

Balancing the checkbook every month sure must've been messy.

As a matter of fact, the word "salary" is derived from salt which was the one ingredient which helped preserve food before refrigerators?were invented.

But let me ask you a very simple, yet profound question that will determine your investment behavior moving forward.

Since 1971 when President Richard Nixon closed the gold window, the average inflation rate in the United States has been 3.98% per year according to the Bureau of Labor statistics.?This essentially means that over the last 51 years the government has been gradually debasing the currency at a rate of 3.98% per year.

Here's the question:??If I break into your home every year and steal 3.98% of your stuff, am I thief?

The dictionary definition of thief is one who steals stealthily or secretly usually without violence or force.

If you answer "yes" to that question, we are kindred spirits.

However, if you answer "no" to that question, I will challenge you to check your premises very carefully.?Or you can simply send me 3.98% of your stuff every year and I will couch your donation in flowery platitudes about injustice, the poor and helping the underprivileged.

Government always couches its policies in language designed to help the greater good.

But how can you help the greater good if the unit of currency used in all economic activity is constantly being debased?

Theft is always immoral.?It is fraudulent.?It is toxic.?It destroys the fabric of society and trust in institutions.

Have you ever noticed that the very inflation which debases currency always remains a mystery to political leaders and monetary authorities??Politicians love to blame businesses or wealthy individuals for inflation.??

In the 1970's the Nixon administration blamed currency speculators for the currency debasement which was occuring.

Yet the cause of inflation is ALWYAS the same.?Inflation is always created in Washington D.C by increasing the money supply relative to the amount of goods that exist for consumption.

Every month the government?releases the Consumer Price Index.?This report is designed to tell consumers how much prices have risen or declined in the past year.?In 2022, inflation?has been as high as 9.1%.?Most recently was reported at 8.5%.?What remains completely comical to me is how these results are positioned and debated in the media.

Literally, you can hear pundits cheer that the government has inflation under control now, because inflation has declined 1/2 of 1%.

No one frames the reality that the government was on pace to steal 9.1% of your stuff, now they are on pace to steal only 8.5% of your stuff!?Go TEAM.?

The bottom line is how do you protect your stuff from being stolen.

The best advice I ever received from a very wealthy individual was to place 25% of my assets in real estate, 25% in cash, 25% in stocks and 25% in precious metals.??

However, when I look at the landscape today those percentages need to change.

Cash is being debased at 8.5% a year according to government statistics.

Real Estate is up 40% over the last 2 years but with higher interest rates the demand has already precipitously fallen.

Stocks even with the recent 20% correction are still amongst the highest levels in history.

Look at the header graphic of the Warren Buffet indicator maintained by the Saint Louis Federal Reserve.

This indicator measures the value of the entire stock market divided by Gross Domestic Product.

Insiders have been selling their stock portfolios for the past year.

High inflation and rising interest rates do not bode well for stock market valuations.

That leaves Gold not as a trading vehicle but as a means of storing and preserving your wealth.

The biggest news story that has unfolded this year is that nations are seriously discussing a return to the gold standard.

But as you might imagine those who control the monetary printing press will squash the feasibility of this idea before you can hear about it in the mainstream media.

Since the beginning of recorded time, gold has held the respect of human societies.

Gold has always acted as a check on the expansion of credit which is always the cause of inflation.

Lastly during moments of fear and uncertainty, gold is the historical choice for safety and store of value.

Next week the Consumer Price Index will be released reporting August inflationary pressures.

The consensus estimates are 8.1%.

Is someone breaks into your home and steals 8.1% of your stuff are they a thief?

The time has come to trust hard assets of gold, silver, platinum.

Click this link to find out how to diversify your investment portfolio with precious metals.