Imagine a million dollar home.
The price tag is One Million Dollars.
Now, if we go back in time, we can always find that that home at some point in time was priced at $1.
Yes, that is right, one dollar. Now I understand a lot of homes are new and would never have started at $1, but we can find the land at a point in time and likely a home built on top and it was priced at $1.
Now imagine we go back in time, and you was the owner of that home.
You owned that home free and clear and you put it to market. You sold that $1 home and kept the money in your pocket.
You made your will and handed that $1 back to your children because it would be worth something some day - right?
So, let us say that this was the 1700's, and some time goes by and every one of your descendents decided to put it in their will that their children gets this $1, because it is going to be worth something right.
Forward in the descendants of 2017 and they think to themselves it has been 300 years, that $1 is good to go now, we should do something with it.
They go to buy that same home that their ancestors sold for $1 and find it requires 1 million times this stuff to buy that home!
They go to buy a car, a vehicle and the price tag is too high.
They then go into a grocery store and can only come out with a can of coke, a nickel and a few cents.
When I understood this principle, I jumped to the one place that is important to get rid of and that was the change, stored nicely in a jar.
I realized that every day that money sits their, I would better off throw a few cents into the garbage heap because that is what happens with money.
As the governments print up money, you got your lot last week or last month or whenever your pay day is. And soon as you get it, the government is printing some more like it ain't going out of fashion.
No one tells you how much extra has been pumped out, but when you look and see that nice home and see its price tag, and then you buy it and think it has gone up in value, the only thing that went up is peoples desire for more and the governments constant printing of money.
