Planning Your Dollar
I get up every morning determined to both change the world and have one hell of a good time. Sometimes this makes planning my day difficult.
- EB White
And I would add to that, make a lot of money. 
Even in jest, planning is the key. Do you have an investment plan? How about your goal for the year? Hopefully it is at least our 21.5% and more.
With the monetary supply increase of about 14% or so by the Feds in the past year or so, and inflation running at a good 4%, if you did not go up 18% in the past 12 months no matter what your portfolio said, you lost money.
That darn old Fiat currency. The only problem with it, is when they want more they just print it. And that is exactly what has happened… a lot lately. Ok, more than just lately.
Want to see what happened since we (the US) went off the Gold Standard and became a a Fiat Currency? This is from the Grandfather Economic Report. Some great reading there by the way and recommended by Milton Friedman and Andrew Anderson.
Now I am not going to get into a discussion on Fiat Currency here in detail other than to quote Wikipedia and to make you aware of what it can do to your portfolio.
OK, don’t laugh because I am quoting old Wiwk, but they have it about right in that up until the time the US did it. Whenever a currency was taken off a standard, i.e. Gold, Silver, etc. tt was usually down so by totalitarian regimes.
A better way to look at this graph is to turn it upside down and and use it to show the buying power of a dollar since the Feds got involved. Ouch…. We are from the Government and we are here to help you.
What this shows it that a dollar back then was worth about 550% more than what it is now. And no that is not a typo.
From Wikipedia -
“Another aspect of fiat money is its relation to property rights. Many economists argue that since a government that has control over its territory can requisition, confiscate or otherwise ban the use of specie within its boundaries, or suspend promise payments — as has often happened in the past — the presence of fiat manipulation of money is seen as being a signal that a government is intent on abrogating property rights for other purposes. ”
That bottom line is that the Feds have opened the sluice gates on the money supply stream and for all of those folks that think they are treading water and staying in place, they are actually getting swept down stream at a pretty good clip.
So, in order to stay afloat and get ahead, 21.5% returns definitely should be your goal. Otherwise, you might be hearing the sound of those famous roaring falls in Going Broke Gulch .
