On inflation and wealth
“Yesterday’s inflation report showed inflation raging so you are now seeing inflation erode your wealth. That is no surprise. At this time 1) the government is printing a lot more money, 2) people are getting a lot more money, and 3) that is producing a lot more buying that is producing a lot more inflation. Some people make the mistake of thinking that they are getting richer because they are seeing their assets go up in price without seeing how their buying power is being eroded. The ones most hurt are those who have their money in cash.”
USAGOLD note: The latest from Ray Dalio …… He has not deviated much from the “cash is trash” theme that garnered considerable attention last year. Now with inflation digging in, he is adamant as ever. One of the investments Dalio recommends in lieu of cash is gold, and he has been advocating it for many years.