Retaining Your Purchasing Power
Just this week I sat down with one of our investors and this is the story that he related to me while sitting at his dining room table. His father tragically died in 1974, at the age of 56. His father had two partners in his business. The two partners bought out his father’s interest in their company from his mother for a very fair price at the time. Combining principal and interest, they assumed a monthly payment of $1,200 for 30 years. In 1974, $1,200 was more than adequate to meet all of his mother’s needs. But over the years, inflation did what inflation does. By 2004, $1,200 was no longer adequate to meet her needs. What happened? Had the two partners underpaid her? No! The government destroyed the purchasing power of the dollar. The dollar did not fulfill its purpose as real money. Instead of acting as a
reliable store of value, the dollar’s purchasing power dropped like a stone. A paper fiat dollar is not a constant store of value. It became worth less and less over time.
Regrettably, our government is guilty of violating our freedom. By taking the “liberty” of printing and spending money that it does not have, the U.S. Government has indeed jeopardized our liberty. It has harmed every man, woman, and child in this country by burdening each of us with a staggering and unconscionable debt. Passing this ever-growing debt down from one generation to the next is not a solution to the problem. It is harming, damaging, and ultimately enslaving our children and grandchildren.