Inflation. Inflation. Inflation. Inflation. Inflation. Inflation. Inflation. Inflation. You’ve heard it everywhere, right? You’ve seen it. Inflation. It’s here. You see it at the grocery store, the gas pump, home prices, and it’s stealing your purchasing power and lowering your standard of living. But what if I told you there’s another side to the story? Could inflation be used to your advantage instead to build wealth even faster, helping you achieve financial freedom? So this video, I’m going to break down how the game is rigged against you and how inflation is being used intentionally to steal your wealth.

But then we’re going to look at how you can use this to your advantage with actual examples so you can understand this and the strategies of how you can use their rigged game to your advantage. So stay tuned because things are about to get interesting. Let’s go. All right, welcome back. If you’re new to the channel, my name is Mark Moss. I make these videos to change the way you think about money because, yes, almost everything you’ve learned is wrong.

And you hear all the time about inflation. Inflation is bad. Inflation is stealing your wealth, which it is. I talk about those things. But to understand this, I want to look at it through two different frameworks real quick. So, first, the game is rigged. A few weeks ago, I put this post up on my Instagram, and it said unsuccessful people think the game is rigged against them, but successful people realize the game is rigged and just learn how to play.

Okay, so inflation is one way I think about this exact quote. The governments use inflation to steal our wealth and transfer it back to themselves. It’s rigged against us. They’re literally stealing our wealth. But the second framework is that we can play the rigged game. We don’t have to just be a victim. Instead, we can learn to play the rig game and profit from inflation instead, which, of course, sounds much better right now.

The other thing I want to consider is that the world is not linear, okay? The world is not black and white. The world is full of nuance. Everything’s a trade off. Everything has a cost, and everything’s relative. So what is good and what is bad, we have to say compared to what and for whom. Okay? So when you have those frameworks in mind, then you can understand that inflation can be both good and bad at the same time, but different for different people that are playing different games.

So first, let’s just go through real quick. Inflation is bad. Now, you already know that INFlAtion hurts you big time. So I’m not going to spend a whole lot of time here, but just a couple points that I want to hit on real quick. So first, inflation is a monetary phenomenon. Milton Friedman explained this. He said, quote, inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.

End quote. So what he’s saying is when the money supply increases faster than the goods and services, it creates inflation. That’s what inflation is. So what this means is, per the correct definition, it’s when the money supply increases. So think of a balloon. If I blow up a balloon, I’m inflating inflation of the balloon. I’m increasing the volume of the air. So if we think about it like that, then prices going up on certain goods and services is the result of that inflation.

That’s not inflation. It’s the money supply going up. The price going up is the result of that. And as you can see from this chart I have up on the screen right now, as the red line, which is the M two, money supply goes up. So has the blue line, which is the consumer price index or prices. Now, it’s not an exact move. It’s not one to one.

There’s some time delays in there, but it’s clear that they follow each other. But of course, rather than acknowledging that inflation is increasing the money supply, the government want to change the definition to what they call CPI or consumer price index. Consumer price inflation. But why? Why is that? It’s because CPI is being used by the government to confuse you. Now, today we’re being told inflation is CPI, but this is, of course, the worst way to try to measure this.

Why? Well, per the BLS website, Bureau of Labor Statistics that measures it, they said, quote, the consumer price index measures the overall change in consumer prices based on a representative basket of goods and services over time, end quote. Okay, but the reality is, what basket? What representative, what goods? Because inflation, consumer price inflation affects each one of us differently based off of many factors, such as, like where we live, but more importantly, what we’re buying.

But the real reason the government changed the definition of the measurement is to confuse you. All right? There’s millions, there’s trillions of products, consumer products, and the prices are all going up and down at the same time for millions of different reasons. So we see, like gasoline going up, home prices going up, steak, they all went up, but TVs and computers are going down. So by calling consumer prices going up, inflation, they can hide the facts behind why those prices went up in the first place, which, of course, was the money supply increasing.

Just look at what the mainstream media is doing for propaganda against you right now. The Biden administration is on full propaganda push right now. We can see that Joe Biden himself was on TV doing a public service announcement right before the Super bowl when the most amount of people would be watching. And he was blaming businesses for trying to stay in business by making a profit, for being greedy.

Of course, the Biden administration, again, on a full court press, Elizabeth Warren has been tweeting out the exact same thing, talking about shrinkflation. In fact, let’s listen to her right here. Explain it. You ever go for the last chip in the Dorito bag and suddenly say, whoa, there should have been more chips in here? You would be right. From Doritos to Oreos to even toilet paper, these big corporations are shrinking how much they give us, but they’re charging the same amount or sometimes even more.

It’s called shrinkflation. Corporate executives thought we wouldn’t notice, but they’re wrong. We noticed. Now the corporations come back crying, oh, it’s all because of inflation. Okay, how absurd does that sound? First of all, there’s no such thing as price gouging in a free market. If a business is charging too much, someone else will come in and charge less and eat that profit away. All right? Second of all, of course, businesses have to make a profit.

When was that ever a problem? That’s the whole point of a business now. Anyway, let’s move on. The reality is governments increase the money supply. The existing money supply loses value. So your dollars actually buying you less and less goods and services, which means your cost of living goes up and your standard of living goes down. Now, this boils down to you having to work more hours just to have the same quality of life that you had before.

So essentially what I like to say is that if inflation is not just stealing your money, not just stealing your wealth, but it’s actually stealing hours from your life. Now, there’s a website I recommend that you visit. It’s called Wtfhment in 1971. Com. I’m going to link it in the show notes down below. It’s just a series of charts. And it’s just all charts that shows what happened in 1971.

So there’s a red arrow point in 1971 when we left the gold standard and we started increasing the money supply with no limits. Looking at the charts, the data, it’s eye opening. Now, I contributed a chart to that website and it said basically the chart was showing how long it takes to save for a house and the chart shows that before the money supply started rapidly expanding in 1971, it took the average american worker about two and a half years to save for a house.

Today it’s about seven, which means that today you have to work an extra four years that you could have spent doing anything else that you wanted. Which is why I say it’s stealing your life. Okay, so now all that sounds bad, right? Which it is. It’s bad, especially for the average everyday person, for the 99%. So then how the heck is this a good thing? All right, so let’s take a look at that.

How is inflation? Why is inflation good? Why do I like it? Well, remember, the rich get richer, right? While the poor get poor. So you have to understand how the rich get richer. That’s the whole point that I’m going to dig into. And it’s that they figured out how to make inflation a good thing. How do they do that? Well, there’s two ways that they make inflation good.

First, inflation pushes assets higher. So while the majority of people are being crushed by higher consumer prices, they can’t afford the gas, they can’t afford a house. Many types of investments actually benefit from inflation. Legendary investor I talk about all the time, Stanley Druckenmiller, the goat billionaire. He explains, quote, the Fed’s policy of easing was inflating stocks and other assets held by wealthy investors like himself, which is fantastic for every rich person.

He went on to say, this is the biggest redistribution of wealth from the middle class and the poor to the rich ever. He said, who owns assets? The rich. The billionaires. You think Warren Buffett hates this stuff? You think I hate this stuff? I had a very good day yesterday, end quote. You see, what he’s saying is the people that own the assets, that go up with inflation, like himself, like Warren Buffett, they don’t hate inflation.

They love inflation. Right? They love inflation because they get richer. They get richer from it. So then, of course, the question we should be asking ourselves is, how can we do the exact same thing? But the key is finding which assets keep up with inflation. And we have to find the ones that not just keep up, but outpace. So for some examples, gold has kept up very well with inflation.

The S and P 500 is almost a perfect proxy for inflation going up. The Nasdaq has outpaced inflation. We can see bitcoin has absolutely decimated, crushed inflation. Real estate, while overall is a pretty good hedge against inflation, scarce resources or scarce properties have actually done better. But then when you include the leverage of loans and long term rates that we can borrow from. It maximizes us. And that brings us to point number two.

Why long term rates? Now, the reason why I like inflation is because we can use debt with long term rates. And it’s actually the exact same reason that the government wants inflation. So why does the government want inflation? Because they want to inflate away their debt. All right, now, this is where things get really interesting. They want to inflate away their debt. You hear about the government saying, the Fed says we have a 2% inflation target.

So our goal is to only steal 2% of your wealth per year. And they’re doing this to inflate away the trillions and trillions of dollars that they have. And they also need rates to be very low. Now, per Hirschman’s research, since 1851, out of 52 countries with gross government debt, greater than 130% have defaulted. How do they default? Either through restructuring, devaluation, high inflation, or outright defaults. You see, there’s only four options out of the situation that we’re in right now.

Again, default. No government with a money printer with the ability to print money is going to default. So that’s off the table. Number two, austerity. Go on a budget. What’s the chance the US, or any government for that matter, spends less money in the future? Number three, raise taxes. But, of course, taxes are already really high. They can’t really be raised much higher without a big revolt. And even if they did, they’re not going to cover the deficit they have.

So then the fourth and final option, which is the one every single government will always choose, is to inflate away the debt. Now, we can see classic examples of this happening all the time. Israel in the 80s in the US and in the UK after world War Ii, they did this exact same playbook. Both countries faced massive public debts as a result of the war. And in order to manage or to reduce those debts, they implemented policies that kept interest rates on government bonds low while allowing inflation to be high.

As a matter of fact, the IMF put out a white paper in 2015 titled the liquidation of government debt, where they broke down. The only way out for the government is to actually do this, what they call financial repression. Let me give you an example. So, with financial repression, they let inflation run high and they keep the amount of interest they pay on bonds low, and they steal the difference.

Let me give you an example of how this works. If the government owes 10 trillion, which they owe way more, but 10 trillion, and the inflation average is just 2% a year, it’s way higher than that. But that’s their stated target. In 30 years, the real value of that debt would be worth about 7 trillion, effectively reducing the burden of repayment without technically defaulting. So that’s the government’s goal, right? They rig the system to allow themselves to inflate away their debt and steal wealth from you.

But of course, then again, why don’t we do the same thing? And how do we do that? Well, just like the government pays back their debt with devalued dollars, so can we. So, for example, we can borrow money at a fixed rate for a long time, five years, ten years. In the US, we have 30 year mortgages. We can lock in interest rates, which keeps the monthly payments constant because it’s fixed as inflation increases over the decades.

Now, assuming an average inflation rate of just 3% per year, a $1,000 monthly mortgage payment would hold less and less real value as time goes on. Now, in today’s dollars, that $1,000 payment could be equivalent to roughly $400 in 30 years. And this isn’t even counting other factors like wage growth going up with inflation as well. So what this means is that homeowners gradually pay back their debt with money that is worth less and less and less than when they initially borrowed it, leveraging inflation to effectively decrease the real cost of their mortgage, just like the government does.

Okay, so now how do we use this strategy in order to kind of really think through this? Let’s go through the thought experiment here. All right. If you understand what’s happening with other currencies around the world and how they’re losing value, what you see on the chart right now is the turkish lira compared to the US dollar. As you can see, the lira has lost 90% of its value in about the last five or six years compared to the dollar.

So if you lived in Turkey and used the turkish lira, and you had a time machine, and you could go back in time five years, what should you have done? Well, you would have exchanged the turkish liras for dollars, right? If you don’t want to hold that devaluing currency. Okay, great. That’s a good option. What would be an even better way that you could have played that? Well, you would have borrowed as much turkish lira as you could, and you’d be paying back the debt 90% cheaper than you borrowed it.

So in this example, it’s super easy to see how inflation paid off that debt if you had done that. And at the same time, the asset prices went up. Right? So asset price went up, debt went down, but you probably don’t live in Turkey and you for sure don’t have a time machine. So how can we do it? Well, it’s easy to see the currencies of Turkey, Lebanon, Egypt, Venezuela, Argentina, whatever, they’re all crashing against the dollar.

But we can see that the dollar is also crashing as well. As a matter of fact, if we look at some of the charts, we can see that US median real estate, the dollar’s crashed about 40% to that. It’s crashed about 65% to the S and P 500, it’s crashed 200% to bitcoin in just the last year. So you see the dollar is crashing at the same time.

So the key is understanding the right investment strategy that you can harness to ride inflation up and to your advantage to build a stronger financial future. And at the same time leveraging debt to grow your assets even faster and having the inflation pay your debt off for you by of course, your friend, your partner, the government. Now, like most things in life, it’s a simple concept, but it’s not as easy to do in real life.

But don’t worry, I got you covered. If you want to know what assets I’m buying to benefit from inflation, I think about in three buckets, I’m going to host a free live event. I’m going to show you all this much more in depth. I’m going to talk about the specific strategies, how to make inflation your secret weapon to become financially free, the types of assets that we buy, how we stack all this.

I’m going to go over that, all that. Live. There’s a link down below, it’s free to attend and I’m going to answer all your questions. Live so you can learn how to implement it. So come hang out with me. Let’s learn this. But remember, knowledge is power, but only when it’s applied. So you have to learn how to apply this. So come ask some questions. And if you want to know why I think inflation is just getting started and it’s not going away and it’s going to continue to rage for the rest of the decade and pay our debts off even faster, watch this video right here about why inflation is going to go higher and hit the like button.

If you like the video, if you don’t, give me a thumbs down, that’s okay. At least leave me a comment. Tell me why subscribe if you’re not already subscribed. And that’s what I got to your success. .

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.