To fight against inflation is to know more about it and the consequence of hyper-inflation. Many many not CARE about inflation so let’s start with simple forum discussion about inflation at Gold Club Asia.
There had already been between 20% to 45% increase in street prices of products based on Lowem’s observation. Things from daily necessity, food, hospitalization to transportation fuel, things have been increasing in prices suddenly over a short period of time.
Using Lowem’s Spreadsheet on the items of inflation
Some of the forum writers are convinced on the general solution to combat inflation is to buy physical gold and SELL ALL your paper assets like fixed-D, stocks, bonds and insurance policies. I personally feel that the investment in any paper asset now through any financial institution is a risky move as most of them are indirectly or directly connected with the current Sub-prime woes in America.
Yes, rich government(s) will bail out banks and most reputable financial institutions using sovereign wealth funds (printing more money) and risk faster inflation.
What is the out come of hyper-inflation? What you earn now may suddenly insufficient to afford your current standard of living and need to “downgrade” to cheaper alternatives if available. Some countries tried to clam down on inflation by price controls however that caused serious shortages of certain products as retailers are not selling below cost.
Shortages are just the beginning, but the chaos begins after the sudden realization that more people are slaving for “peanuts” will cause depression and hopelessness in the low income community. The middle income are strapped in debts and struggling to downgrade everything they own from smaller house, smaller vehicles to smaller pay cheque to stay employed.
The high income people will have the luxury to redirect their funds in lucrative investments like commodities and reinvest in to their businesses making them more richer.
The eventual gap between the rich and poor will have chaos similar to the 1997 to 1998 Indonesia Anti-Chinese Riot.
Rioting or protesting are common sight in poor countries where the rich poor gap are most evident however to imagine such chaos in modern sophisticated country such as Singapore is almost impossible.
The population will need plenty of assistance to overcome the mentality of money driven economy into sustainability development otherwise “problems” will starts once the gap or rich poor widens to be too OBVIOUS to passerby (eg. More homeless beggars along the road with expensive sports cars parking right beside them)
The poor will start from frustration to starvation and develop the desperation mentality and will do ANYTHING to gain attention for assistance. If nobody can help them then the dark side of these people will starts to crack open the society with slowly with increasing numbers of theft then robberies to violent riots & looting.
It might take harsh policing to clam down on these people but without sustainability development to supply them with food, water, electricity, fuel and jobs or business opportunities it will not solve anything.
Some countries will declare war with countries that have the necessary resources but never share with them using “terrorism” as the golden key and invade them with no intention of preserving peace, prosperity or human rights issues.
Fear and shock awaits such disasters (war), some politician might deploy shock doctrine on their own people to united the people with a single devastating shock and alter their entire policy with a swift draconian move while the people still in the state of shock.
Through these confusing and chaotic times, what solutions can we get from others? Probably not all suggestions are guaranteed to help everyone in every situation. There are no magic pill to solve everyone’s financial woes.
The easiest solution now is to conserve and recycle, use your innovation and creativity to earn more money. Invest in skills and knowledge and reduce debts whenever possible, gambling are bad and that includes risky investments that you know nothing of.
My own personal solution is to find out urban sustainability solutions like vertical indoor farming, renewable energies development, water purification and innovative inventions to save time and money.
Physical assets that earns money via rental are great but do not be greedy as most greedy people falls victims to scams that promise them great wealth only to find out that they had been conned.
Learn and upgrade yourself to make yourself more valuable to the community so that in times of crisis, you will not be the first person the community to sacrifice to the system.
The dark side is always attractive, however the good will always prevail against the evil, do not engaged in serious crimes that involves killing, destroying properties, scams and other crimes that cannot be tolerated.
In the world of chaos, vigilantes may punish the criminals harshly and without warning. Do not do anything seriously harm others. Many countries are seeing vigilantes killing criminals in the street in broad view of the public.
Lastly, stay positive and be contented with what you have. Money isn’t everything but happiness comes from within and not material wealth.
Try to get rid of the seven deadly sins
Stay healthy and God Bless!
