Hello and welcome to another episode of Passive Real Estate Investing. I'm your host, Marco Santarelli. Well, today I wanted to take a different topic and talk about that. No guest, just me talking about some of the stuff I've been talking about recently on some presentations I've done about inflation and promissory notes more specifically, I had put together a presentation titled How to Earn 15% Interest and Beat Inflation with Promissory Notes. So I'm not gonna be talking about promissory notes today. I am gonna talk about inflation, what it is and how you can beat it. There is essentially a formula and some definitions I guess you need to know in order to calculate whether you're getting ahead or behind the inflation game. So let's start with this. I like these two quotes. So the first quote is by Ronald Reagan, who was a popular, famous, great Hollywood movie star back in the day, but he was also the US president from January, 1981 through January of 1989.

So he said that “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” And although that's pretty graphic, I think it paints a picture of what inflation, you know, might be doing, not necessarily to you physically, but in terms of your, your wealth and your purchasing power, or in other words the cash or the savings that you have. Another great quote I love is by Milton Friedman and Milton Friedman was an American economist and a statistician who received the 1976 Nobel Memorial Prize in economic sciences. Super smart guy, great books, great articles, just a very intelligent, cerebral person that makes economic things very easy to understand. But such a simple quote, “Inflation is taxation without legislation.” He's basically saying that inflation is robbing you or stealing from you, like Ronald Reagan was saying, but you didn't ask for it.

You didn't vote it in, you didn't want it, you didn't request it, nobody votes for it. But you know, it's just kind of brought upon us whether through monetary policy and what, you know, the politicians in the Federal Reserve decide to do, or it's brought on because of supply and demand dynamics. You know, the constraints, supply chain, bottlenecks, whatever it may be. You know, that's price inflation as opposed to monetary inflation, but it's inflation nonetheless. So inflation is taxation without legislation and what he's referring to is what the politicians are doing with monetary policy and printing, printing money and bringing that currency into existence and putting it into our economic system.

So I get ahead of myself here. So a couple things I want you to take away today is, you know, why is inflation a wealth killer? How do you beat high inflation? And what my favorite inflation hedges are, there's four main inflation hedges that I have. So let's dive into that. Hopefully you'll get some good takeaways from this today and maybe I can help you point your compass in the right direction.

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If you missed our last episode, be sure to listen to Housing Trends – November Market Update

So, let's start off with a survey that was done recently. It was, I think earlier this year, June, 2022, there was a study or a survey done with 19,000 adults in 27 different countries. And they were all asked, what are your top global concerns? What were they over the last two years? Now this question was asked, you know, about six months ago, five, six months ago. And what was interesting is what was once the top global concern across all these people in 27 countries was coronavirus. It peaked at the beginning of 2021 and then declined rather rapidly. And as of today, it is one of the least or lowest top global concerns. Yet at the same time, there was two other things that I, I was looking at on a chart as far as what those top global concerns were.

And one thing that was declining very clear,