Image source: Pixabay

The ONLY way to get ahead in our financial system is to invest.

I’m not writing that for dramatic effect. The reality is that the financial system is set up to accomplish one thing: devalue the USD.

See for yourself… Since the Fed embarked on its campaign to reflate the financial system after the Great Financial Crisis, the USD has lost over a THIRD of its purchasing power.

(Click on image to enlarge)

Put simply… if you’re sitting in cash, you’re losing money every single year. In this context, the ONLY way to actually grow your wealth is to invest in assets. And if you don’t believe me, maybe you’ll believe Janet Yellen, who served as both the Chair of the Federal Reserve AND the Treasury Secretary.

Ms. Yellen is the ULTIMATE insider… someone who has personally managed the economy and the USD.

Back in 2014, when she was running the Fed, Ms. Yellen gave a speech Perspectives on Inequality and Opportunity from the Survey of Consumer Finance. During the speech, Ms. Yellen pointed out that owning assets/ investing is essential to growing wealth.

Specifically, she said…

Another major source of wealth for many families is financial assets, including stocks, bonds, mutual funds, and private pensions…

For many people, the opportunity to build a business has long been an important part of the American dream. In addition to housing and financial assets, the SCF shows that ownership of private businesses is a significant source of wealth and can be a vital source of opportunity for many households to improve their economic circumstances and position in the wealth distribution.

Source: FederalReserve.gov

As if this wasn’t explicit enough, during the Question and Answer session following the speech, Ms. Yellen stated that acquiring assets was one of the best means of moving higher in wealth.

Since the time in which she gave this speech, the stock market is up over 220%, gold is up 180% and the $USD is essentially flat (actually it’s DOWN adjusted for inflation).

THIS is why the Fed props up the stock market… it’s why the Fed moves to intervene anytime a major asset class begins to implode… and it’s why you HAVE to prepare for what’s coming down the pike.

The ONLY thing the Fed knows how to do is print money. This devalues the $USD. So, if you stay in cash, you WILL lose money and fall behind.

This is especially true as the USD is on the verge of a MAJOR breakdown. I’ve shown this chart before. There’s a reason I’m showing it again: this is the SINGLE most important chart in our financial system today. When the $USD takes out that trendline, it will enter a secular bear market. And this will ignite an inflationary storm.

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