Did you born in the 70s? Then you have lived all your life under an inflationary system. You have been educated under the impression that inflation is not only necessary, but also good.
I remember in my school days the teacher saying: “A little bit of inflation, around 2% is good”. We know that the truth is that a 2% inflation is only not good, actually is very bad! (2% inflation, in 36 years, your money value is divided by 2. 5% inflation in 15 years!)
But besides the money value of our savings, which we mitigate by holding hard assets (Bitcoin, gold, real estate, …), inflation also affects other fields of our live that are sometimes more important than the money savings themselves. Probably every field one can imagine is impacted by inflation, but I would like to highlight two that are crucial to have a good standard of living: Nutrition/health and housing.
Nutrition/Health: Inflation is wrongly but widely accepted measured by the Consumer Price Index (CPI). Such indicator, flawed due to its manipulation, aims to measure the impact of inflation is the purchase of the basket of daily goods. As the governments can’t avoid inflating their currencies, they will try to incentives the production of cheaper products for consumption. Such cheaper products will come with a detriment of their quality which will eventually affect our health. In this regard, it is not a coincidence that we can see a vast diversity of sugary products and cheap seed oils in our supermarkets, but we can’t see red meat or animal offals, which are probably the most nutrition food. In some cases, they have even disappeared. If people don’t eat nutritious food, they disappear from the CPI calculations and therefor inflation goes down. Goes down at the same speed as of our health!
Housing: As inflation goes up, normies, who understand it but don’t understand bitcoin, tend to allocate their savings in real estate through lifetime mortgages (in the US already 40 years!). Real estate is becoming more and more expensive which pushes inflation up. In order to reduce it, our governments tend to promote the idea that living with less, small spaces is good you. That forces you to look for smaller apartments that it is situated below the big house price, and making you believe that it is affordable. Nevetheless, the only thing you are doing is to purchase a smaller house for a higher price per square meter. Also, in order to reduce the overall price, house will be built with cheaper materials affecting the overall quality of the asset. No brainer why current constructions last around 20 years compared with ancient architecture that lasts for hundreds of years!
In summary, yes, it is important to protect our savings against the devaluation that inflation is forcing to our currencies but also to take care of other aspects of our life on which inflation is heavily influential.
See you in Nostr! Neutral Money