Inflation ... Opting Out

    Imagine living in a world where prices for everything are continually falling.  A world in which you save a day’s wage today, and in the future when you go to spend those savings, it buys you more goods and services than it did the day you saved it. A world without inflation.  Bagholder is certain most of you firmly believe a world like this is not possible.  Not only does such a world exist, but Bagholder has been living there for the last 30 years.

   Most of you reading this today, look around and see a world where prices for everything are continually rising. Today, a dollar's worth of your labor will get you a cup of coffee at McDonald’s.  Is there any chance at all, that same dollar will get you a cup of coffee 20 years from now? Of course not…. The coffee will not be any different. The dollar, on the other hand, will be. As a direct result of the financial elite printing money with reckless abandon, the purchasing power of that dollar is being systematically reduced. Meaning it will take more of them in the future to get that coffee. Any Econ 101 student could tell you, when you have more dollars chasing the same goods and services, the price for those goods and services has to go up.  It is called Inflation.

   This isn’t anything new. The Haves have been doing it to the Have-nots since Christ was a corporal. Even back then, the Roman Haves were diluting their currency with the purpose of stealing from the Have-nots. Today the Have-nots in this country are forced to work for dollars, while the Haves just print them. Actually these days, it is just a keyboard entry, they do not even bother printing anymore. From the moment our political leaders created the Fed in 1913, and gave them the power to print money, this nation’s fate was sealed. In the decades prior to the creation of the fed, when we had sound money (1850-1910), everything from clothing, to food, to books, to horses, etc… was all falling in price. Hard to believe, I know - but look it up.

    As a student of history, Bagholder sees paper money for what it really is; a transfer mechanism the Haves use to steal the productivity of the Have-nots. The only thing of value the Have-nots can offer the Haves (which they don't already own) is their labor & the product of that labor. The Haves want nothing more than to get it as cheaply as possible. Paper money is their go-to weapon. The Haves get the benefits of the Have-not’s labor for the low price of some ink and paper a keystroke - with an added kicker. When the Have-nots get paid, they get paid with something that, in effect, has a fuse. The paper money, thru constant dilution, becomes worth less & less every year. This is the hidden genius of the paper money con. They pay us a day’s wage today, and then when we go to spend that day’s wage in the future, thanks to higher prices, it buys less.

   Bagholder decided long ago he was not going to live in a world where his labor and his savings bought less and less every year. To that end, Bagholder buys gold with every dollar he can. As a consequence, everything in Bagholder’s life is priced in terms of OUNCES OF GOLD. Pricing things this way allows us to peer through the clear lens of sound money. Consider this real-life example which Bagholder has written about before, but it bears repeating.

    In the last 2 decades, Bagholder has purchased 4 new Honda civics. The first was Xmas 1998, where Bagholder negotiated a purchase price of $12,240 out the door for those of you who think in dollars, while Bagholder had to cash in 42.5 ounces of Gold (at $288). Mrs Bag & I liked the car so much, we bought another Civic for her xmas 2003. The best out the door price we could negotiate was $14,520 in Paper - or 35 ounces of the pure (at $415) to me. Tax day (April 15th) 2013, Bagholder, being the loyal guy he is, purchased another Civic. The total out the door cost on this one was $18,999 in dollars, or 13.5 oz of Gold (@$1400/oz). Graduation day 2020, Bagholder purchased yet another Civic, this one for his son, $20875 out the door in paper dollars, 12.1 oz of Gold for me (@$1725/oz).

    Notice how the car price in dollars is always higher, while the car price in Gold ounces is always lower. In fact, comparing the first purchase to the last, Civics are up 70% in dollar terms - while they are down 70% in Gold terms. While you paper dollar bugs - looking thru your hopelessly smudged glasses - get higher prices for new cars year after year, we Gold bugs are watching new car prices fall like a stone in water. It is not just cars either; food, real estate, greens fees, college tuitions, gallon of gas, even medical costs are falling in GOLD terms.

The most important thought to take from today’s blog is NOT that paper money is a scam - it is. But rather your participation is voluntary. You do not have to play their game. Stop being a Victim, and Seize control. Stop saving in dollars, buy yourself some GOLD and start living in a world where prices are perpetually falling & your savings buys more - year after year. It is the way things were meant to be.