Today I want to tell you about a very important Facebook video I came across recently.
It’s a short speech by Pierre Poilievre, a conservative MP in the Canadian House of Commons.
Now normally I don’t watch parliament or care about politicians, but this time was different. (see video below)
The Rich Get Richer
He talked about…
- The real reason Canada’s 15 richest billionaires got 30% richer as the economy collapsed last year…
- How the Bank of Canada printed more cash ($400 billion!), even while cash was being used less in the economy…
- The $400 billion in printed money is more than normal government spending for an entire year, and more than they spend on healthcare
- How the bank raises money by selling bonds in the marketplace… but they bought back their own bonds that they just sold (watch the video for the full explanation).
Although it’s an eye-opening video, most people have never heard about what Pierre is talking about.
But it’s really important because essentially what the government is doing is STEALING money right out of your pocket… without you knowing it.
When central banks print more money, they add to the total money supply used to buy goods and services in the marketplace.
And since they are the first ones to use that money, they get the full benefit of those dollars – the full, undiluted value.
Paying The Price With Inflation
Over time, that extra printed money makes its way into the economy and causes inflation.
The impact of inflation can be seen in multiple ways..
- Higher prices – basically you need to earn more to buy the same goods and services you normally buy. In other words, your dollars buy less and less
- Cheaper materials – manufacturers cut production costs, and you buy a new stove but it only lasts 4 years instead of 15 years like your old stove
- Smaller products – you buy a bag of cookies and notice how they’ve shrunk from what you remember just a few years ago. Or you receive a smaller quantity of cookies in the bag than before.
Money-Printers Benefit Most
Each of these is an example of inflation at work, eating away at your purchasing power. But it doesn’t affect the central banks in the same way because they already used the printed money – they were the first ones, remember?
How’s that for sneaky?!
And it’s not just the Bank of Canada by the way… this is happening in every country in the world that has a central bank.
- Federal Reserve in the US
- Bank of England
- European Central Bank, etc.
“Permit me to issue and control the money of a nation, and I care not who makes its laws!” – Mayer Amschel Rothschild, founder of the Rothschild banking dynasty
Pierre Poilievre also said the rich earn income from assets, and those asset values increased in value due to all the money printing.
That’s true, but in my opinion, earning income from assets is not exclusive to the rich billionaires – anyone who buys an asset that generates income can do it.
The government is STEALING your wealth…
And if you don’t have assets that generate income, you’re going backwards each time they turn on the printing press.
So what’s the solution?
Do whatever you can to add income-producing assets to your portfolio.
Positive Cash Flow
Not just assets like your home (which cost you money each month), but assets that produce positive cash flow.
- Rental properties – income is generated from rents and other sources
- Dividend stocks – income is generated from low-tax dividend payments
- Cryptocurrency – in some cases, certain cryptos can generate income
- Online Business – income is generated from sales of goods and services, advertising, etc.
Side note: Central banks are particularly concerned about cryptocurrency because they can’t inflate its supply like normal money, and it’s borderless)
Asset Owners Win
If the government keeps printing money (and you know they will), all of these assets will increase in value over time, helping to protect your hard-earned wealth from the inflation caused by money printing.
And the income will help cover any debt servicing costs incurred to buy the asset.
For example, if you took out a loan to buy a business, or a mortgage to buy rental real estate, the income will cover the monthly payments (or ideally it should!)
If you paid cash for the asset, the income will provide you extra money to fund your lifestyle or buy more assets if you want.
But if all you do is save money… that cash will be worth less and less as the government slowly picks your pocket.
And one day you’ll wake up to find all the cash you’ve saved won’t buy much, if anything.
Just ask anyone who has lived in a country where the government went out of control with money printing – it’s not a good outcome.
Click Here to watch the video
(no Facebook account needed – just click ‘Not now’ on the popup)