In his recent video, Lark Davis delves into the alarming reality of the current economic landscape. CoinSpeech collected the most important takeaways from his insightful discussion. You can find Lark Davis’s new video below.
Inflation – The Inevitable Economic Force
According to Lark Davis, inflation is now as inevitable as “death and taxes”. It affects all aspects of our daily lives, from the cost of gas to groceries. “Gasoline will never go back to a dollar a gallon, nor will you ever pay $1.50 for a dozen eggs,” he says, demonstrating the permanence of rising prices.
The Government’s Dependency on Inflation
Davis reveals a less obvious truth: “The government actually needs inflation to survive.” With the U.S. national debt nearing $35 trillion, the government relies on inflation to manage and somewhat mitigate this astronomical financial burden. “It’s never going to happen,” he adds, suggesting that the debt is unpayable under current conditions.
The Mechanics of Inflation
Inflation is primarily driven by government monetary policies and the flooding of money into the system. This, in turn, reduces the purchasing power of money in our pockets but helps the government balance out its debt. “Inflation kills our purchasing power, but the truth is it kind of helps the government out quite a bit,” Davis explains.
Surviving Inflation: Practical Advice
To navigate the turbulent waters of inflation, Davis recommends several strategies:
- Investing in Bitcoin: “Bitcoin has outpaced inflation and other traditional asset classes by a massive margin,” he notes, citing its low inflation rate and increasing value.
- Buying Gold: While not as convenient as Bitcoin, physical gold remains a strong hedge against economic instability. “Countries like China and Singapore are ramping up their gold reserves big time,” Davis mentions.
- Diversifying Residencies and Citizenship: “If you have the capacity to do so, consider acquiring second residencies or citizenships,” he advises. This can be an effective escape route from economic turmoil.
The Dire Future of National Debt
With projections estimating the U.S. national debt to exceed $54 trillion in the next decade, Davis warns of even higher inflation rates and deeper economic woes. “It’s prudent to prepare for the worst because it’s probably going to happen,” he stresses.
In conclusion, the video points out that while preparing for economic adversity is crucial, one fundamental aspect remains: “You cannot trust your government to protect your financial well-being.”