Prices Will Rise

The Global Monetary Crisis will see the perceived value (and there is no other value!) of paper pseudo-money continue to fall.  It is a failure of quality; in this instance caused primarily, but not only, by too much government spending leading to too much government money printing.

Some prices will collapse, others will rise.

The value of assets will continue to fall hard.  That includes houses and apartments.  The real estate market will not again reach recent values within the lifetime of anyone reading this blog.  Notice that I do not say prices will fall, but value will fall.  The prices may go up, but only because the value of paper money will be continuing to fall.  Paper money will fall in value much faster than the rise in prices of assets.

Meanwhile, the cost of daily essentials will start to rise.  Food and energy cost will go through the roof.  Prices of essentials will rise faster than the fall in value of the money.

So at the precise moment that people’s wealth, as judged by their assets, is collapsing, the cost of food to eat and energy to keep them warm will become more and more expensive.

If history is any judge people will do two things:

1       They will become extremely angry, then

2       They will direct that anger at the wrong target.

In Germany during the Weimar monetary collapse the people blamed the shopkeepers for rising prices!  Not the government who kept printing so much paper money that it required ever more of it to buy anything, but the innocent shopkeeper who was merely responding to the situation in the only way possible to ensure survival.

Know this, and know this well:

When daily essentials are going up in price, it is not the value of the goods that are rising, it is not the greed of the shopkeeper that is rising, IT IS THE VALUE OF GOVERNMENT’S PAPER MONEY THAT IS FALLING.  it will be falling (as now) because they are printing too much of it.

Anger is the correct emotion.

Make sure that the correct emotion is directed at the correct target.