The Ponzi Scheme That Is Our Economy

You’ve got to wonder these days why they still make 10 cent pieces, or 20 cent pieces, or 50 cent pieces…or even any coins at all anymore.

If you had one of these coins, or even a bunch of them in your pocket, what could you buy?

Back in the 1990s, a dollar could get you 100 carrot sticks at the school canteen, or 20 cents could get you an ice block.

But nowadays, what’s a coin going to get you? A can of coke is $3 or $4. An orange juice is $4. You go to the bakery for a bread roll and there’s a bit of glazing on the top and they call it a brioche bun and it now costs $4.

We are in a world today where inflation has eradicated your purchasing power.

You need to ask the question, why would someone want to have money, as in currency, in their possession? The more time passes, the more money’s value diminishes and dollars no longer make any sense…or cents.

If your wealth is stashed in cash, it is getting stolen from you. Something worth $5 today could be worth nothing tomorrow. Something worth $1000 now might seem like a lot but it’s becoming more and more worthless.

It’s a Ponzi scheme

Currency only has any value because the government and the central banks say it does. Money isn’t made of gold and silver anymore, so has no real value. Why is one piece of paper worth $100 and another worth $5? Or better yet, why is a number in your bank account worth anything to you?

It’s only worth what the people manipulating it say it is and it can be devalued any time.

Think about famous Ponzi schemes where investors are lured by the promise of high returns, not knowing that their investment is being used to pay the returns of earlier investors and new investors will in turn pay their returns rather than legitimate profits coming in from the company.

Bernie Madoff’s scheme was one of the most famous. He conned investors out of around $20 billion and absconded with the money, leaving thousands of people ruined.

BitConnect was a more modern version in the sense that it was an open source cryptocurrency connected with a high yield investment program. Users could lend the value of BitConnect coin in return for interest payments. It had a multi-level marketing structure and improbably high interest of 1% compounded daily. Eventually, a lack of confidence saw its value collapse and investors left out of pocket.

When you think about currency and governments, this all sounds a little bit familiar. You and I have cash, the banks are in debt to central banks, governments are in debt to other countries, so who holds the money? Where is the value coming from? The value of currency could disappear and is doing so gradually.

How do I take advantage of this system?

Wanna ride the wave of inflation for your own gain? It’s simple. You need to acquire good debts in the form of assets like property.

Assets where your debt will be inflated away at the same time as your returns increase exponentially.

In times like these, currency or money goes from weak hands to strong hands. You need to work out if you want to have strong hands, and how this game is going to work. How will you benefit from it and set up a family dynasty moving forward?

If you just want to make a few bucks, simply hold onto all of your assets and they will naturally go up. But if you’re looking to create intergenerational wealth to set up your family, you will need a more sophisticated strategy.

Reach out to b Invested on 1300 367 925 or admin@binvested.com.au and we can help you build that strategy.