The Effect of Inflation and Buying Power

The Impact of InflationA little more than a year ago, I bought a 17' Mako skiff with a 75 hp outboard for not quite $19,000.   That was a big step at the time, but something happened recently that was surprising.  I returned to the very same Bass Pro Shop for various fishing items, and decided to see what was in the boat sales area.

As you can see from the pictures, something remarkable had happened to the price of the boat.   The very same boat that I bought in mid 2020 was now $32,010 in mid 2021.  You might say that I got a pretty good deal in 2020, but that isn't quite true.  My ability to buy the bought today was greatly reduced after just one year of inflation.

The reality is that the boat price didn't go up!  The value of the U.S. dollar went down, so it would take more dollars to buy the exact same boat.  Yes, I felt a moment of happiness when I thought that I had bought it at $19,000.  Then I realized that this was like driving a car at 75 mph ... feeling the power of speed.

Then, a guy blows by at 95 mph, and I feel quite different about the experience.

When I hear people talking about Troptions and cryptocurrency in their ignorance, I really wish I could explain that while the dollar is dropping in value, my supply of Troptions have gone up by 30% in six months.  

The dominance of cash is a kind of trap because we then ask, "How can I buy things when I don't have enough dollars?"  There aren't many other options.  You could beg or borrow to get more money.  Or, you might consider trading what you no longer need for something that other people want.  

It is well past time to figure out how to get what you will want or need if inflation turns into a depression.  When banks make dollar tight, taxes are raise, and prices go up ... you realy need a "Plan B" if you don't want to stand in a bread line or ask for help from strangers.   That Plan B is not turning into a Prepper, stocking freeze dired meals, or buying silver.  

Whether in good times or bad, you need to be in a community that understands trading or barter.  We all have stuff that we can trade, but what if there isn't enough money to buy what you are selling?  Communities completely cut off from normal civiliation live by their work ethics and barter.  It works great in good times, but it is even more valuable in bad times.

Where to start?  Go to www.xctra.com and take the free video courses.  There is nothing to buy until you are ready to try your skills on a crypto barter marketplace that allows you to post up your offers and buy from others ... and you don't need cash.