“Invest in inflation, it’s only going to go up.”
~ Will Rogers
Written by Bryan Lutz, Editor at Dollarcollapse.com:
Whenever the Federal Reserve prints more money, the rich get richer.
For some, this is a familiar economic concept called the Cantillon Effect.
The Cantillon Effect shows that when new money enters the economy, those there are a privileged few that have better and more access to that money.
The first to access is government. Next are the banks, and then follows the corporate business world…
While the average joe gets stuck at the bottom tarrying away day-after-day so that one day, they may obtain their dream “agreement-unto-death” – a mortgage.
The point is though, there is more money in the world than you and I will never know of, and much of it either goes to the government, or the banks…
Who lend the majority of their money out to those who already own income producing assets like real estate or businesses.
They then use that money to increase their revenues ahead of inflation.
One more thing happens…
When the money supply increases, so does the perceived value of hard assets.
So when the government went wild with pandemic printing, you can see just how much the value of assets held by the Top 0.1% of wealthy Americans increased.
There is also a more tangible example.
Over the past three years, we see an incredible increase in the number of family offices around the world.
CNBC reports:
Family offices have tripled since 2019, creating a new gold rush on Wall Street
“The number of family offices in the world has tripled since 2019, setting off a new race among private equity firms, hedge funds and venture capital firms to attract their investments.
According to a new report from Preqin, the number of family offices — the private investing arms of wealthy families — topped 4,500 worldwide last year. North America has the largest share of family offices, with 1,682. More than half of all the family office assets in the world are in North America.”
You could argue that when the government exponentially increased the M2 Supply in 2020, some families got afraid. They wanted to create an extra layer of protection outside of the banking system, but that doesn’t matter here.
What actually happened was the Cantillon Effect.
When you have more, you not only get access to easier money first, your assets all increase in value with the money supply.
And the increase in family offices does this.
There’s something we can all learn from this…
In an inflationary environment like ours, hard assets like gold, real estate, farmland, and your business are invaluable to protecting and multiplying your wealth.
Especially those assets that can be used to produce income like real estate, farmland, and businesses.
And gold?
Physical gold will always be there when you need it.
The other faster way to earn would be to focus on gold, silver and other resource stocks.
More on that soon.
