Have you seen the Dow Jones lately? You may have noticed that stock has risen since the crash in 2008 and that has given you great hope that the US economy is actually recovering. Not so fast though. The reason why stock and gold prices are rising is the inflation. The American government has been pumping trillions of dollars into the economy, causing each piece of paper money with the $ sign on it to have less and less purchasing power. Stock and gold are not more expensive because they worth more, but because the US dollar has lost its purchasing power.

In his book Conspiracy of the Rich, Robert Kiyosaki explains that currency is not money. Currency comes from the word ‘current’ like the ocean current or the electricity current. It is named after that word because one of the important lesson of the new set of money rules is that a current needs to always move because otherwise it will die. Remember the case with the Dead Sea? It is called “Dead Sea” because the ‘ocean current’ is dead there and doesn’t flow anywhere.

It is the same with the money in your hands. With the inflation today, people who park their money in savings and or retirement accounts are losing more and more of the value of the money that they have. The money dies there and soon it will worth nothing in a few years.

The best way to save your wealth is to put your money into something that allows your money to keep moving. People who use their savings to invest in something that gives them cashflow are winners. A simple example would be owning low-income apartments. Instead of parking your money in savings or retirement accounts, you will more likely to win by investing your money in small low-income apartments and rent it out to people who earn low income. Investors like these always win because it does not matter how bad the inflation has impacted the dollar, they will always have dollars coming in and are even able to raise the rent if the dollar gets less and less valuable.

Savers are now losers because as the dollar in the savings and retirement accounts are losing its value, the savers are losing their purchasing power in the inflated economy where prices of everything rises.

As the dollar continue to weaken, investors and importers from other countries are happy because now they have stronger purchasing power. However, countries who are exporting themselves are now threatened as their currency is getting stronger against the dollar, which means US products are more competitive in prices compared to theirs.

There is a chance that now other countries are printing more money into the economy so as to cause inflation and compete with US less expensive products. In the end, no matter where you are residing, the inflation will cause savers everywhere to be losers.

If you want to stack away some money, don’t put it in a savings or retirement account to let it die. Invest for cashflow. Or park your money in precious metal. The government can print out money all they want and cause greater hyperinflation but if you save your money in silver, gold, oil or commodities that are rising in prices because the dollar weakens, you will win.

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