1 00:00:00,089 --> 00:00:03,291 The $100 note in your wallet is worth less today than it 2 00:00:03,331 --> 00:00:06,532 was yesterday. Most people think it's just normal inflation, an 3 00:00:06,572 --> 00:00:09,734 unfortunate side effect of a growing economy. But the reality is 4 00:00:09,954 --> 00:00:13,335 every government in the developed world runs a monetary system that 5 00:00:13,376 --> 00:00:16,677 deliberately and intentionally, mathematically and 6 00:00:16,737 --> 00:00:20,079 economically erodes the purchasing power of your 7 00:00:20,159 --> 00:00:23,480 money. I'm Lloyd J. Ross, seven figure investor and entrepreneur, and I've helped thousands of 8 00:00:23,520 --> 00:00:26,682 everyday people get out of debt and build real wealth. And I'm here to 9 00:00:26,762 --> 00:00:29,944 show you in this video exactly why The Australian dollar is 10 00:00:30,004 --> 00:00:33,205 losing value, why the system is designed this way, and what 11 00:00:33,265 --> 00:00:36,627 you can do about it yourself. Firstly, let's dive 12 00:00:36,687 --> 00:00:39,948 into what is fiat currency, where did it come from? So let's go 13 00:00:39,968 --> 00:00:43,990 back to the basics. Because this is where you'll understand why 14 00:00:44,030 --> 00:00:47,312 we have this system, the fiat system, okay? And why 15 00:00:47,352 --> 00:00:51,094 it fails and when it's abused, well, it fails when it's abused, okay? It 16 00:00:51,114 --> 00:00:54,295 doesn't always fail, but when it fails when it's abused, To 17 00:00:54,315 --> 00:00:57,756 date, it's not gone too bad, right? So for most of human history, 18 00:00:57,796 --> 00:01:01,298 money was either a commodity itself, so gold, silver, 19 00:01:01,538 --> 00:01:04,799 or was backed by a commodity. It was a little bit like barter. But 20 00:01:04,819 --> 00:01:08,181 you could take your paper note to the bank and exchange it for a fixed quantity of, let's say, 21 00:01:08,301 --> 00:01:11,682 gold or silver, right? That was the gold standard. You 22 00:01:11,702 --> 00:01:15,023 could exchange a US dollar for a certain ounce 23 00:01:15,063 --> 00:01:18,465 of gold, right? And the idea was pretty simple. The government 24 00:01:18,505 --> 00:01:21,647 can't just print more money than it has gold, yeah? The 25 00:01:21,687 --> 00:01:24,889 gold supply acted as a bit of a natural ceiling on money 26 00:01:24,929 --> 00:01:28,071 creation. Supply of gold dictated the supply of money, right? 27 00:01:28,531 --> 00:01:32,093 But then came Great Depression. Great 28 00:01:32,113 --> 00:01:35,295 Depression was a big factor that shifted that, and then World War II, right? 29 00:01:35,736 --> 00:01:39,838 And the reality is that the gold standard was Effectively, it 30 00:01:39,878 --> 00:01:43,020 kind of constrained growth. It was like a straitjacket on the 31 00:01:43,080 --> 00:01:46,282 economy, and they realized that. It wasn't growing. In fact, 32 00:01:46,742 --> 00:01:49,984 the gold standard was a big cause of the Great Depression. I 33 00:01:50,004 --> 00:01:53,786 don't know if you knew that, but they couldn't release 34 00:01:53,906 --> 00:01:57,408 credit fast enough, and that's what caused a lot of the Great Depression. 35 00:01:58,029 --> 00:02:01,158 And then it couldn't grow beyond World War II. And 36 00:02:01,218 --> 00:02:04,521 so the reason why, in 1971, Richard Nixon took the US 37 00:02:04,661 --> 00:02:07,803 off the gold standard is because they wanted to 38 00:02:07,863 --> 00:02:11,126 grow the economy faster than what they were. So basically, the modern 39 00:02:11,226 --> 00:02:14,969 fiat era began with President Nixon when 40 00:02:14,989 --> 00:02:18,371 they shifted off the gold standard in 1971, right? They call it the Nixon 41 00:02:18,411 --> 00:02:21,714 shock. And it started to remove the anchor that 42 00:02:21,774 --> 00:02:25,357 precious metals enabled on monetary expansion. It's 43 00:02:25,377 --> 00:02:29,280 kind of what happened, right? So fiat money, which basically, fiat 44 00:02:29,420 --> 00:02:32,683 is this Latin word It means let 45 00:02:32,723 --> 00:02:36,298 it be done. that 46 00:02:36,318 --> 00:02:39,940 will be done or by decree, right? So it's money that the government says, it's 47 00:02:39,980 --> 00:02:43,081 money because the government says it's money. So it's an agreement and 48 00:02:43,101 --> 00:02:46,403 a belief, right? Not because it's backed by anything physical, although 49 00:02:46,423 --> 00:02:50,024 you could argue that the US military is what backs the US dollar, and 50 00:02:50,084 --> 00:02:53,286 also oil, the petrodollar, right? Because you have to buy and sell oil 51 00:02:53,426 --> 00:02:56,747 in US dollars. That's the petrodollar. So really, I think that oil 52 00:02:56,907 --> 00:03:00,048 and the military backs the US dollar. That's just what I think. But it 53 00:03:00,129 --> 00:03:03,230 has no real intrinsic value. It's a piece of paper, right? So it's more about the 54 00:03:03,370 --> 00:03:06,551 law and the trust in it that is what makes 55 00:03:06,591 --> 00:03:09,873 it valuable, right? And we all believe in it and trust it, which is by 56 00:03:09,893 --> 00:03:13,195 and large how any currency is formed, to be honest with you. Like even 57 00:03:13,235 --> 00:03:16,457 with gold, it doesn't do anything. It's just a piece of thing out of the earth. We 58 00:03:16,497 --> 00:03:19,678 all believe that that's the currency, that'll be the currency. So it's just really what we trust and 59 00:03:19,718 --> 00:03:23,160 believe to be is how we barter is really what makes a currency, okay? 60 00:03:23,601 --> 00:03:28,563 So what I want to explain to you now is why 61 00:03:29,063 --> 00:03:32,373 inflation is actually a good thing. Right? 62 00:03:32,813 --> 00:03:35,935 And people often think, well, let's go back to the gold standard. And I'll come to that in a second why 63 00:03:35,975 --> 00:03:39,357 that's not a good idea. But here's why inflation is a good 64 00:03:39,397 --> 00:03:42,859 thing and why the fiat currency system does work pretty well when 65 00:03:42,879 --> 00:03:45,980 inflation is low. And 2% inflation is 66 00:03:46,020 --> 00:03:49,802 the target that they go for. And it's genuinely smart 67 00:03:50,643 --> 00:03:53,859 because Whilst the episode is called why fiat currency 68 00:03:53,879 --> 00:03:57,200 is worth us, I want to go into the facts of why it does work as well, right? 69 00:03:57,680 --> 00:04:01,081 Because the concept of design inflation isn't stupid, it's quite elegant 70 00:04:01,281 --> 00:04:04,562 as to how it helps the economy grow and run, 71 00:04:05,602 --> 00:04:08,683 and why deflation is worse. So, I'll explain it. 72 00:04:09,123 --> 00:04:12,485 Let's say, for example, that it's the opposite. So if your money was worth more 73 00:04:12,525 --> 00:04:16,181 tomorrow than it is today, So anti-inflation, called deflation. 74 00:04:16,662 --> 00:04:20,164 If prices fall every year, what do you do? So inflation's where 75 00:04:20,204 --> 00:04:23,606 prices go up each year, and the value of your fair currency 76 00:04:23,646 --> 00:04:27,028 falls against the prices of things growing. That's what we do now. 77 00:04:27,689 --> 00:04:30,811 But imagine it was different. Just for a second, flip it. 78 00:04:31,271 --> 00:04:34,453 What if it was disinflationary? So 79 00:04:34,493 --> 00:04:38,676 if prices fall every year, what would you do? Would 80 00:04:38,696 --> 00:04:42,058 you spend the money? Uh-uh. No, you wouldn't. No, you wouldn't. 81 00:04:42,679 --> 00:04:45,869 You would wait. You wouldn't 82 00:04:45,909 --> 00:04:49,072 buy a car today because it'll be cheaper next month, right? You 83 00:04:49,092 --> 00:04:52,816 won't invest now and buy equipment for your business because the value of the 84 00:04:52,856 --> 00:04:57,641 equipment next year will be less. So you'll hold cash, which 85 00:04:57,701 --> 00:05:00,784 is the worst thing you can do for an economy, right? Because the velocity of 86 00:05:00,884 --> 00:05:04,067 money stops. An economy runs on the spending and 87 00:05:04,107 --> 00:05:07,311 investment of money, right? So if everyone was 88 00:05:07,371 --> 00:05:11,329 waiting for things to get cheaper, then nothing gets built. Nothing 89 00:05:11,349 --> 00:05:15,079 gets bought, businesses fail, unemployment rises and GDP contracts. That's 90 00:05:15,139 --> 00:05:18,323 what happens when you have deflation. And 91 00:05:18,383 --> 00:05:21,785 it's not a theory, it's actually what happened in history. Let me explain 92 00:05:21,805 --> 00:05:25,547 it. If you go back 200 odd years to the Napoleonic Wars, 93 00:05:25,907 --> 00:05:29,549 when Napoleon was still around with the British, it's 94 00:05:29,609 --> 00:05:35,431 one of the most important economic cases in history. So 1790 to 95 00:05:36,152 --> 00:05:39,633 1815, Britain was, when there's these Napoleonic Wars, Britain was forced off 96 00:05:39,653 --> 00:05:43,595 the gold standard to fund the war effort. So 97 00:05:43,635 --> 00:05:47,640 that's what happened. So history, whatever. They printed money. and 98 00:05:47,680 --> 00:05:50,963 inflation ran hot. Yeah, sound familiar? But 99 00:05:50,983 --> 00:05:54,207 the economy kept moving, right? There was industry, trade, there was 100 00:05:54,367 --> 00:05:57,566 industrial revolution, then the war ended. And 101 00:05:57,606 --> 00:06:00,787 then they established, so they returned back to 102 00:06:00,807 --> 00:06:04,209 the gold standard, the pre-war parity, like the gold to 103 00:06:04,549 --> 00:06:07,910 fiat parity, yeah? And when they returned to the gold standard 104 00:06:07,990 --> 00:06:12,412 in 1819, guess what? It resulted in severe deflation. 105 00:06:12,872 --> 00:06:16,293 The unemployment rate, which had hovered about 5% at the time, grew 106 00:06:16,333 --> 00:06:20,375 to 17%. Monetary contraction contributed 107 00:06:20,395 --> 00:06:23,778 to bankruptcies, there was unemployment in the early 1820s 108 00:06:23,838 --> 00:06:27,220 and it triggered riots, petitions to Parliament, right, 109 00:06:27,740 --> 00:06:31,502 from returning to the gold standard. That's 110 00:06:31,522 --> 00:06:35,205 what happened. So prices fell sharply and the 111 00:06:35,285 --> 00:06:38,647 debt burden in Britain grew because it forced people 112 00:06:38,687 --> 00:06:42,053 to to not want to repay their 113 00:06:42,093 --> 00:06:45,655 debts, right? So the gold standard delivered price 114 00:06:45,675 --> 00:06:48,938 stability long-term, but when it came to the 115 00:06:49,018 --> 00:06:54,161 economic foundations of growth, it just doesn't work. Okay? 116 00:06:55,342 --> 00:06:58,544 So we don't want a deflationary currency, just so you know. When you see people 117 00:06:58,564 --> 00:07:01,966 go, let's go to the gold standard, they don't know what they're talking about. They're flipping, 118 00:07:01,986 --> 00:07:05,048 they're just gold bugs that make you wanna buy gold because if you buy gold, it goes up in 119 00:07:05,088 --> 00:07:08,250 price and you seem wealthier on paper. So let's go 120 00:07:08,290 --> 00:07:11,801 back to the fiat system. There's a feature built into it, which 121 00:07:11,841 --> 00:07:15,003 is called controlled inflation, and it's gentle. It's about 2% a year. But 122 00:07:15,043 --> 00:07:20,326 here's how it works. If wages rise by 2%, and inflation, 123 00:07:20,346 --> 00:07:23,448 which is the cost of things, goes by 2%, the real purchasing power of 124 00:07:23,508 --> 00:07:27,317 workers is preserved. Nothing changes. Capisce? 125 00:07:27,718 --> 00:07:31,382 So the notion of inflation is farce. It's not real. Because 126 00:07:31,442 --> 00:07:34,925 if you're a working person of society, then your 127 00:07:35,086 --> 00:07:38,329 wage or income goes up by 2% a year, and then cost of things goes up by 2% a 128 00:07:38,349 --> 00:07:42,293 year. The result is zero. It's the same. Yeah? Makes 129 00:07:42,313 --> 00:07:45,417 sense? So the real purchasing power is preserved. You earn a 130 00:07:45,477 --> 00:07:48,901 little more in nominal terms, but the things cost a little more in nominal terms 131 00:07:48,941 --> 00:07:52,525 too. So the net effect is zero. But the incentive to spend 132 00:07:52,585 --> 00:07:55,649 still exists because your cash doesn't appreciate sitting under the 133 00:07:55,689 --> 00:07:59,273 mattress. So you decide to use it. You buy goods, services, 134 00:07:59,333 --> 00:08:03,377 investments. You spend on things, right? especially 135 00:08:03,397 --> 00:08:06,700 for people who are productive earning wages. So you earn money and you create 136 00:08:06,740 --> 00:08:10,242 value, you do things, and it works. The inflation model 137 00:08:10,282 --> 00:08:13,524 at 2% works. So your income kind of keeps pace with it, right? 138 00:08:13,604 --> 00:08:16,866 And the economy grows. Living standards rise, but more 139 00:08:16,906 --> 00:08:20,148 steadily, yeah? So the Reserve Bank of Australia and other reserve banks too, 140 00:08:20,168 --> 00:08:23,670 they mandate this 2% to 3% target band for inflation for that reason. 141 00:08:24,010 --> 00:08:27,773 Because they know it means that we're not getting poorer, right? 142 00:08:28,653 --> 00:08:32,094 That's it in theory, and it actually, you know, from say 143 00:08:32,874 --> 00:08:37,775 2009 to 2016, you know, 144 00:08:37,835 --> 00:08:41,136 2020 maybe, it was pretty stable. Very elegant, that's 145 00:08:41,176 --> 00:08:44,517 why you probably were traveling more than, like, things 146 00:08:44,537 --> 00:08:48,218 are pretty good. But it's when governments stop respecting the 147 00:08:48,378 --> 00:08:51,699 limit where the wheels fall off it, okay, so it's where the system 148 00:08:51,719 --> 00:08:55,240 gets abused. And this is where it goes from, you 149 00:08:55,260 --> 00:08:58,362 know, cash is trash, truly, and it does, it's true, right? So this is 150 00:08:58,382 --> 00:09:02,345 how the government breaks the system. 2% model is all good, and 151 00:09:02,365 --> 00:09:05,967 it requires discipline, and then the governments can't resist the temptation to 152 00:09:06,027 --> 00:09:09,869 just pump money into the system, right? So the last 15 years in particular, the 153 00:09:09,909 --> 00:09:13,332 discipline has been absolutely abandoned. Since COVID, really, 154 00:09:13,812 --> 00:09:17,114 it's a joke, right? So let me explain to you the four main ways 155 00:09:17,154 --> 00:09:20,355 where the government, like intentionally eroded the value 156 00:09:20,375 --> 00:09:23,836 of the fiat currency beyond the 2% healthy rate, right? It's been designed. 157 00:09:24,056 --> 00:09:27,237 So firstly, they print more money, it's quantitative easing, been around 158 00:09:27,257 --> 00:09:31,118 since the global financial crisis 2008, right? The US Federal Reserve did a meeting, it's unprecedented, 159 00:09:31,338 --> 00:09:35,078 the bank stuffed up, let's flip and flood the country with money, 160 00:09:35,378 --> 00:09:38,999 right? QE they called it, quantitative easing, QE. And 161 00:09:39,019 --> 00:09:42,320 then COVID happened and then guess what? They did it again. They did it 162 00:09:42,340 --> 00:09:45,581 again. And so it's supplying the world with more 163 00:09:45,621 --> 00:09:49,522 money, right? So the Federal Reserve balance sheet went from a trillion before 164 00:09:49,562 --> 00:09:53,442 2008 to nearly nine trillion at its peak in 2022, nine 165 00:09:53,682 --> 00:09:57,623 X, nine times the pre-crisis level. So 166 00:09:57,643 --> 00:10:01,404 the total Federal Reserve asset purchases during the pandemic was like five trillion. 167 00:10:03,185 --> 00:10:06,546 And Australia did the same, like the RBA ran its own bond buying 168 00:10:06,586 --> 00:10:09,706 program during COVID, purchasing government bonds, which floods the market with 169 00:10:09,746 --> 00:10:14,551 money to keep interest rates at bay, right? What 170 00:10:14,571 --> 00:10:17,852 does this mean for you? It means basically that more money 171 00:10:17,872 --> 00:10:21,654 in the system. So oversupply of money, yeah? So 172 00:10:21,674 --> 00:10:26,115 the bond markets flow with bars, yields falls, interest rates fall, and then all 173 00:10:26,135 --> 00:10:29,297 the money floods into assets effectively. So like property and shares inflate. That's why 174 00:10:29,317 --> 00:10:32,658 you've seen a huge inflation in asset prices like property and shares, 175 00:10:33,138 --> 00:10:36,679 because the QE just floods into those assets, right? Because rates 176 00:10:36,719 --> 00:10:39,895 are lower, artificially lower, yeah? And then 177 00:10:39,915 --> 00:10:43,258 of course, if you got money in the bank, it doesn't work. So the second thing that happened too, 178 00:10:43,598 --> 00:10:46,881 they kept interest rates artificially low for too long, right? 179 00:10:47,061 --> 00:10:50,864 Low interest rates are a tool. Buy any Federal Reserve or RBA bank. They're 180 00:10:50,884 --> 00:10:54,206 like tools. It's the only tool they've got to manage inflation and create 181 00:10:54,286 --> 00:10:58,109 price stability. So in 2012, 2022, most 182 00:10:58,169 --> 00:11:01,291 developed central banks in the world kept rates on or 183 00:11:01,352 --> 00:11:04,874 near historic lows for a long time. Yeah? So it made borrowing 184 00:11:04,934 --> 00:11:08,117 really cheap for a long period of time. And it fueled more of the asset bubble. 185 00:11:08,137 --> 00:11:11,721 So not only did they do QE and flood the market with money, but they kept rates low 186 00:11:11,761 --> 00:11:15,484 so that borrowing was easier. And when you keep rates 187 00:11:15,564 --> 00:11:18,907 low for a flippin' decade, you create a whole generation of financial 188 00:11:18,927 --> 00:11:23,371 behavior calibrated on almost free money. And 189 00:11:23,431 --> 00:11:26,935 now you're seeing on, right, if you go now online, 190 00:11:26,955 --> 00:11:30,199 because they increased rates yesterday, People are 191 00:11:30,239 --> 00:11:33,801 getting shit. It's like taking candy off a baby. They're spitting 192 00:11:33,821 --> 00:11:37,263 the dummy. It's hilarious. They're getting 193 00:11:37,383 --> 00:11:40,444 angry, because you're taking money off them. Because they're just so 194 00:11:40,584 --> 00:11:43,926 used to low rates. It's not real, though, right? So it's a 195 00:11:44,306 --> 00:11:47,847 little bit amusing, actually. So that's what happened. There's two things, yeah? In 196 00:11:47,867 --> 00:11:51,009 the last five years alone, there's been a cumulative inflation rate of 25%, right? 197 00:11:51,029 --> 00:11:59,473 So that means $1,000 in the year 2000 had the purchasing power of about 1800 by 198 00:11:59,793 --> 00:12:03,034 2025. Isn't that insane? Like, it's almost lost 199 00:12:03,154 --> 00:12:07,396 half its value. So if you were on 100 grand in 2020, you'd 200 00:12:07,436 --> 00:12:10,617 have to be on like 180 grand and get the same value. It's mental because 201 00:12:10,637 --> 00:12:15,019 the wages haven't caught up with it, right? Third thing, bureaucracy, bloating 202 00:12:15,039 --> 00:12:19,236 at the government level. Here in Australia specifically, Not 203 00:12:19,276 --> 00:12:22,478 just the bureaucracy of those working in there, but the actual spending of 204 00:12:22,518 --> 00:12:26,181 the government has got out of control. It's not just to build roads or train doctors 205 00:12:26,241 --> 00:12:29,543 or fund scientific research or anything like that. That's a good, that's a very 206 00:12:29,603 --> 00:12:33,046 productive use of money by the government, right? And 207 00:12:33,066 --> 00:12:36,327 the economy, you get something back for that, an ROI. But when the government spends 208 00:12:36,447 --> 00:12:40,408 money on growing itself, which is its work, is its bureaucracy, and 209 00:12:40,428 --> 00:12:43,669 all these people doing dances in Parliament, not really doing what they're doing 210 00:12:43,689 --> 00:12:47,089 there, and they all work from home, and there's no productivity, because I've never met a government employee 211 00:12:47,109 --> 00:12:51,070 that's productive. I'm going to lose some fans 212 00:12:51,130 --> 00:12:54,651 now. But hey, there are, of course, nurses productive. 213 00:12:54,731 --> 00:12:58,152 I mean, there are. But there's a lot in those white-collar 214 00:12:58,172 --> 00:13:01,873 jobs that aren't. But you're creating non-market jobs, right? 215 00:13:02,413 --> 00:13:05,853 Non-market jobs. So you're expanding programs that don't 216 00:13:05,893 --> 00:13:09,154 produce measurable return on investment. So the more money that goes into the 217 00:13:09,194 --> 00:13:13,055 system, you don't get a return for it. Prices just go up, yeah? So 218 00:13:13,315 --> 00:13:16,736 here's some stats for you. The Commonwealth government employees rose 219 00:13:16,776 --> 00:13:22,837 by 5.6% to 385,000 people. It 220 00:13:22,897 --> 00:13:26,941 rose by 5% in one year, from 2024 to 2025, right? 221 00:13:27,462 --> 00:13:31,426 And so that means the wages paid to them surges. It's like $40 billion 222 00:13:31,466 --> 00:13:35,470 in wages for that year, public sector wages, incremental wages. The 223 00:13:35,510 --> 00:13:38,913 role of the federal government, it's not to just blow itself up. It's 224 00:13:38,953 --> 00:13:43,250 there to control things in the free market, right? Anyways, 225 00:13:43,470 --> 00:13:47,851 what's happening is they're increasing the number of non-productive members 226 00:13:47,971 --> 00:13:51,772 of government, so spending without productivity, right, and it's not sustainable. Then, 227 00:13:51,812 --> 00:13:55,032 you know, some examples of what they spend on other things too that's not sustainable is things 228 00:13:55,052 --> 00:13:58,213 like the NDIS. It started out to be, I think it was $10 or 229 00:13:58,613 --> 00:14:03,814 $15 billion maybe initially, now it's grown out to be, what, $30, $40, $50, on 230 00:14:03,854 --> 00:14:07,535 track to be $50 billion I think now, and so You 231 00:14:07,555 --> 00:14:11,160 know, what are we supposed to do? Get it to 125 billion by 20... They're 232 00:14:11,180 --> 00:14:14,324 gonna be 125 billion by 2034. It's crazy. And 233 00:14:14,364 --> 00:14:17,989 that's a non-ROI spend. Because if you're just supporting 234 00:14:18,029 --> 00:14:21,243 those that aren't productive... I'm not against it, I'm 235 00:14:21,263 --> 00:14:24,426 against the extent to which it's been abused. It's just, 236 00:14:24,947 --> 00:14:28,230 if you just spend all this money on 237 00:14:28,390 --> 00:14:31,854 support for non-productive members of society just on that, there's just 238 00:14:31,934 --> 00:14:35,297 no ROI. So if you're going to do that, get an ROI 239 00:14:35,337 --> 00:14:38,761 somewhere else, because we're not getting that, right? You know it's the third, 240 00:14:38,941 --> 00:14:43,946 NDIS is the third largest federal expense program. And, 241 00:14:44,506 --> 00:14:47,688 I shouldn't be laughing, it's wild. The support people aren't 700,000, but 242 00:14:47,708 --> 00:14:50,929 it employs, in some respects, like 700,000 people. 243 00:14:50,969 --> 00:14:54,250 It's a lot. So, it's not good for productivity, yeah? 244 00:14:54,630 --> 00:14:57,771 It needs a revisit, right? I think it's like, I think it's, 245 00:14:57,911 --> 00:15:01,773 the numbers are 10% of all Australian six, 246 00:15:01,913 --> 00:15:05,754 yeah, this is the number, I think it's 10% of all Australian six-year-olds were 247 00:15:05,774 --> 00:15:08,856 on their own NDIS in March 1925. Isn't that 248 00:15:08,876 --> 00:15:13,729 insane? That is insane. Where 249 00:15:13,749 --> 00:15:17,032 were they before? I'm sure that a lot of them didn't need that before. Anyway, I'm 250 00:15:17,052 --> 00:15:20,194 probably treading on some thin ice here, but there's a real problem. And you'd have 251 00:15:20,214 --> 00:15:23,616 to agree, even if you're a recipient at the end of it, you'd also have to agree, right? 252 00:15:23,656 --> 00:15:26,798 There's some shenanigans going on there we need to stop, right? And then 253 00:15:26,878 --> 00:15:30,361 we move on to how this is impacting you, okay? So 254 00:15:30,561 --> 00:15:33,663 we look at these things that cause the currency debasement, which is 255 00:15:33,703 --> 00:15:37,406 what I've just explained there in those five points. That's what's causing 256 00:15:37,426 --> 00:15:40,488 the debasement, right? So we know the root cause of 257 00:15:40,568 --> 00:15:44,110 it. So how do we shift it? 258 00:15:44,190 --> 00:15:48,134 What happens? Because if we don't, we get inflation growing, 259 00:15:48,174 --> 00:15:52,038 growing, growing. And all of a sudden, we're going to take a wheelbarrow down to the shop to buy bread and milk. That's 260 00:15:52,058 --> 00:15:55,883 what happens when there's hyperinflation. The 261 00:15:55,903 --> 00:15:59,947 dollar has lost 95% of its purchasing power since 1960. And 262 00:15:59,987 --> 00:16:03,308 a lot of that's happened in the last five years. But what they don't realize is 263 00:16:03,588 --> 00:16:06,869 it's not the purchasing power, it's also the fact that income's also gone 264 00:16:06,929 --> 00:16:09,989 up. So when people say that, it's lost this, it looks like it 265 00:16:10,029 --> 00:16:13,330 lost it all, but the reality is incomes have gone up. So it's not a 266 00:16:13,470 --> 00:16:17,151 net result as bad as what it sounds, okay? If you're a productive worker 267 00:16:17,451 --> 00:16:20,672 with rising inflation 2%, it means you're being compensated for 268 00:16:20,712 --> 00:16:23,982 it. But if you are retired or you have a fixed 269 00:16:24,042 --> 00:16:27,585 income, then every year you buy less and you do get poorer. And 270 00:16:27,625 --> 00:16:31,128 the reason why you feel poorer after the last five years is because wage inflation's not 271 00:16:31,148 --> 00:16:34,870 gone up. Has somewhat, but not as much as what inflation's 272 00:16:34,890 --> 00:16:38,133 gone up. And that's why there's been this disparity. And that's why 273 00:16:38,253 --> 00:16:42,076 GDP per capita has gone down for eight consecutive quarters 274 00:16:42,436 --> 00:16:45,658 in Australia. Does that make sense? So if you feel 275 00:16:45,698 --> 00:16:48,879 like you are poor, it's because you are, because wage inflation hasn't kept up 276 00:16:48,919 --> 00:16:51,980 with actual inflation, and we're not being productive as a 277 00:16:52,020 --> 00:16:55,381 society. We're just not. Because we're spending all our money 278 00:16:55,501 --> 00:16:58,722 on non-productive projects. Make sense? That's 279 00:16:58,743 --> 00:17:01,924 what's happening. And we're a recipient of that. So there's no such thing 280 00:17:01,944 --> 00:17:05,345 as a free lunch. So next time you see, oh, we're doing this, oh, free transport, 281 00:17:05,365 --> 00:17:08,726 free, there's no free. It's from taxpayers, from productive workers. 282 00:17:08,826 --> 00:17:12,030 And if you're one of them, that's your money. And if you 283 00:17:12,050 --> 00:17:15,395 don't rein in the government voting for the right people that understand that, you're just 284 00:17:15,475 --> 00:17:19,674 making your own bed to lay in it. And you can't complain. There's no crying in the casino. If 285 00:17:19,734 --> 00:17:23,057 you have caused this because of your shitty way that you vote for the people 286 00:17:23,097 --> 00:17:26,680 in power, because you're too stupid to figure out what their policies are, then 287 00:17:26,720 --> 00:17:30,082 you deserve all the poorness that's coming to you, because that's what's causing 288 00:17:30,102 --> 00:17:33,605 it. It's how we vote as a nation. It's who we put in power, because 289 00:17:33,625 --> 00:17:37,048 they create policies that do this. They put the policy in 290 00:17:37,068 --> 00:17:40,951 place. They are the ones that lose control of it. They're the ones that stuff our 291 00:17:41,111 --> 00:17:44,213 energy for net zero. All these policies have a big impact on 292 00:17:44,253 --> 00:17:47,622 your wallet. And it's what causes a 293 00:17:47,722 --> 00:17:51,384 lot of the inflation problems. It's what causes 294 00:17:51,444 --> 00:17:54,866 debasement in the currency. So it's not just the fiat 295 00:17:54,926 --> 00:17:58,209 currency's fault. It's designed pretty well. It has 296 00:17:58,269 --> 00:18:01,651 worked fairly well for a long period of time. It's when you get shitty leaders 297 00:18:01,691 --> 00:18:04,993 at the top that make dumb decisions like Albanese that you 298 00:18:05,033 --> 00:18:08,135 start to get a huge debasement. And I'd say most of 299 00:18:08,175 --> 00:18:11,260 it, and he's not the, He's just the figurehead of 300 00:18:11,280 --> 00:18:14,462 the party. But the policies of the party are 301 00:18:14,722 --> 00:18:18,865 just brutal for deep basement. Like, yeah, 302 00:18:18,905 --> 00:18:22,147 they just, it's almost like Jim Chalmers has never been to 303 00:18:22,167 --> 00:18:25,508 an economics class. I just doubt he even has. And or had 304 00:18:25,548 --> 00:18:29,391 a real job or like he, it's 305 00:18:29,471 --> 00:18:32,672 really, it's disturbing when you think about someone can be 306 00:18:32,733 --> 00:18:37,175 in power and do the policies that he does and have no real world 307 00:18:37,215 --> 00:18:41,109 experience. I mean, flip a neck. Yeah, it's 308 00:18:41,129 --> 00:18:44,511 a problem. So would I expect that 309 00:18:44,851 --> 00:18:49,874 debasement of the currency to continue? Yes. Beyond 310 00:18:49,914 --> 00:18:53,416 the 2% that it should be, yes, which is why gold 311 00:18:53,436 --> 00:18:57,599 has gone up so much because people often buy gold as a hedge against inflation. 312 00:18:58,039 --> 00:19:01,281 I prefer to buy businesses and run small 313 00:19:01,301 --> 00:19:04,462 businesses that can hedge inflation through price rises. I prefer to do it that 314 00:19:04,502 --> 00:19:07,824 way, because businesses are more productive than gold. And you don't know when to sell gold 315 00:19:07,864 --> 00:19:11,145 and get out. It's just too difficult. So I just avoid it. But that's why gold's 316 00:19:11,165 --> 00:19:14,227 gone up so much, and silver. Now oil. Now oil's following it, 317 00:19:14,267 --> 00:19:17,328 right? Do I think it's going to continue under the 318 00:19:17,348 --> 00:19:20,890 current government? Yes. If you vote Labor again, 319 00:19:21,531 --> 00:19:24,772 if you vote Labor again, and the same policies that have happened 320 00:19:24,792 --> 00:19:28,604 for the last, God, however many, five years, you 321 00:19:29,306 --> 00:19:32,936 will see the same. So if you'd like to see your Maxibon 322 00:19:33,056 --> 00:19:37,944 ice creams at the shop go from $6 to $12, go and vote Labor again. If 323 00:19:37,964 --> 00:19:41,126 you want to be poorer, vote Labor again. I'm not joking. I didn't 324 00:19:41,166 --> 00:19:44,488 give a shit. I'm not aligned to any party. I'm aligned to the party of 325 00:19:44,528 --> 00:19:47,910 common sense who makes smart decisions. If that's One Nation, great. If that's Liberal, 326 00:19:47,930 --> 00:19:51,413 great. If that's Labor, great. If Labor was real, I'd vote. But you've 327 00:19:51,433 --> 00:19:55,335 got to look at the facts. Some of these policies, and I'm not even, I think 328 00:19:55,435 --> 00:19:58,877 Liberal did the same thing. I think both parties are 329 00:19:58,957 --> 00:20:03,273 equally to blame. And so please, 330 00:20:03,773 --> 00:20:07,396 this is not a political podcast, but God damn, next 331 00:20:07,456 --> 00:20:11,420 time you can vote, read the policies and go, are 332 00:20:11,460 --> 00:20:15,403 these aligned with productive uses of our capital? That's 333 00:20:15,583 --> 00:20:18,926 so important because it will make us wealthier and better, right? 334 00:20:19,026 --> 00:20:22,129 And not poorer and poorer and poorer. Let's be honest, we want 335 00:20:22,149 --> 00:20:25,612 to live good lives, we don't want to live, I mean in Australia we should have, we've got a thousand 336 00:20:25,652 --> 00:20:29,415 years worth of natural resources, none of us should be even paying tax for goodness sake. So 337 00:20:29,695 --> 00:20:32,798 who is in charge of steering this country matters. And the 338 00:20:32,878 --> 00:20:36,501 problem is not in the design of the fiat, the problem is in the execution of 339 00:20:36,561 --> 00:20:40,205 it. And the government is responsible for 340 00:20:40,245 --> 00:20:43,467 that and they have a completely absolve the 341 00:20:43,487 --> 00:20:46,930 responsibility. They are like children in a candy shop. And 342 00:20:47,190 --> 00:20:50,772 the currency is not the problem. The system is not the problem. It's how it's wielded. And 343 00:20:50,792 --> 00:20:53,914 the only way we can stop that is to shift the leadership. So if you want to 344 00:20:53,934 --> 00:20:57,216 stop debasement of currency, change who's in charge, because what they're 345 00:20:57,236 --> 00:21:00,718 doing is wrecking it. Does that make sense? Know the difference and plan accordingly. 346 00:21:00,738 --> 00:21:03,960 So if that makes sense to you, you think I'm on the right track here, leave me a comment below. If you think I'm 347 00:21:04,000 --> 00:21:07,557 way off track, and I don't know what I'm talking about, and I'm gonna flog, and he's 348 00:21:07,577 --> 00:21:11,701 just here to sell books, and I'm like, that's you? Comment below too, and I'll fight you in the comments. But 349 00:21:12,241 --> 00:21:15,545 leave a genuine comment if you want to, ask me questions, I'm happy to have a debate 350 00:21:15,585 --> 00:21:18,868 about it. But yeah, I like some of the comments, they're quite 351 00:21:18,888 --> 00:21:22,302 funny. But I'll see you in the next episode. Thanks for listening to 352 00:21:22,342 --> 00:21:25,664 Money Grows on Trees. If you enjoyed the episode, leave a five-star review 353 00:21:25,684 --> 00:21:28,786 on Apple Podcasts and Spotify and subscribe to 354 00:21:28,866 --> 00:21:32,327 us on YouTube so you never miss an episode. And if you're serious about building 355 00:21:32,367 --> 00:21:35,769 wealth, make sure to check out the links in the show notes and follow me on 356 00:21:35,949 --> 00:21:39,551 all social media platforms, at LloydJamesRoss for