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Why Inflation and a Financial Crisis is Good... in the Long-Term

The following visual has kept me enthralled since I first saw it years ago:

The main idea is that we as humans are prone to get lost in the indulgences of good times. This produces weak people who produce hard times; however, these hard times produce strong people who create good times.

But how does this relate to our financial future?


Inflation is a monetary phenomenon that hurts almost everyone, especially those who can least afford it.

What caused this inflation? Namely – excess and unnecessary dollars pumped into our financial system. Below is a common gauge for the amount of money in our system:

It’s not necessarily a surprise that high inflation happened – the surprise is that excess inflation didn’t occur sooner. We have been deficit spending in our country for a long time (spending more money than we have) and are now experiencing the consequences.

The consequences: hard times.


These hard times show us that what was once forgotten still matters: wise and constrained fiscal policy.

I know this is taboo, but our country’s future depends on it.

We have seen the challenges driven by excess spending: inflation, bank runs, job insecurity, and stock losses. I think these hard times will raise up a generation of people who will fight back against our excesses – creating a society that functions well in the long-term.

This is why I'm optimistic.

Wise words were once said: “Suffering produces endurance, and endurance produces character, and character produces hope.


Risk Disclosure: Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.


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