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Your Worthless Dollar Is Worth Less Than You Think

No money, all problem: Asset inflation has made you poorer.

It doesn’t take a PhD in economics to figure out that your dollar isn’t going as far as it used to. We’ve all felt it.

But the real issue isn’t just the price of your morning coffee.

The real killer is asset inflation.

Assets — gold, houses, the hard stuff — are skyrocketing in price, and they’re eating away at your financial future.

Owning assets has become the only way to keep up. If you don’t have assets, you’re falling further behind every day.

Think of it as a dollar in cash versus a dollar in assets — and cash is losing. Badly. It’s almost doubled since 2012.

This graph tracks the adjusted value of a dollar over time, accounting for asset price inflation. Assume a dollar in cash is always at $1. The rising red line demonstrates the how the value of assets have increased against the consumer price index. There was a major recovery after the 2008 financial crisis, but thanks to inflationary monetary policy (quantitative easing), asset prices soared again.

Asset Price Inflation

While the Consumer Price Index (CPI) has been doing its thing, slowly ticking up close to its projected rates (although inflation has been relatively high recently), asset prices have been shooting for the moon.

The graph above shows the dollar’s value tanking when adjusted for asset price…