Will hyperinflation make your current financial advice worthless? We’ve been discussing the way hyperinflation would affect stocks, bonds, and real estate. Now, we’ll look to see how it would affect your cash. Most financial advice is built on the premise that holding cash is safe and without risk. But most financial advice has come about over a time span of less than a century and is based upon this limited history. Looking at history over a longer period shows that current financial advice could end up being worse than worthless. This financial advice could lead you to doing exactly the wrong things!
Cash in the bank will be worth less and perhaps worthless. Depending on how far the US Dollar falls, your savings that you feel is so secure will be no security at all as it loses all purchasing power.
Perhaps, this section is a bit grim? We don’t want to butter you up, but instead tell you to the best of our abilities, what we believe will happen. But there is incredible good news and we’ll end with a note about how to handle these times. Yes, there are ways to prepare financially. But that won’t mean you don’t experience the difficulty of these times. These times have been foretold for thousands of years. It’s an incredible blessing that we get to live in these times. (Many of the religious among you will immediately assume that we’re saying Jesus will come down from the clouds in the next few years, but we didn’t say that and we don’t believe that.)
The Lord has shown us a little about these times, but there is much more that we don’t know than there is that we do. One thing the Lord has made clear to us is that many of the religious understandings common today are of Man’s wisdom and are wrong, just as they were 2000 years ago when Jesus showed up to a very religious society to do God’s will. This time will be similar. In fact, everyone who wants to live a godly life in Christ Jesus will be persecuted (2 Timothy 3:12).
And it will all be exactly as it should be. God will offer His life to those who can focus on Him and give themselves completely to Him no matter what is going on around them. God has spoken to us about these things and still we tremble hoping and praying that it includes us. (Not that we doubt our salvation, nor that of those Christians who don’t experience the fullness of what He is offering. But we long for the fullness of His Kingdom; to be raised in these days as a son who knows the Father and is doing His work!) The full manifestation of this is still to come and it is at the end of a very narrow road.
So do not be afraid of these times. God is good and what He is doing is unbelievably gracious. We do not intend to scare anyone, but to help you prepare. I believe that when hard things come, they are much easier to handle if we know that God is in them and He has told us beforehand that they will happen. There is important preparation you can do both in dealing with the soul and in financial areas.
We hope and pray that you are about them. But even if you ignore all this, no matter how difficult things get compared to the life that you are used to living, God will bring you through all things. And if you seek Him whole-heartedly and lay down your fear so that you can take up His life, this time will be a wonder and better in the most important ways than any you have known. This will not be easy for most to do. Most will discover that their lives are not truly sacrificed to Christ at all. But if this is what we need to discover this fact, it is good to find out now so that we can experience the true life that He calls us to! Financial advice is important, but what hyperinflation will really reveal is that God’s provision is what is truly important. Better to live that reality sooner than later.
Next, we’ll begin digging deeper into specific asset classes and analyzing how each should do in the coming economic environment.
This is Part 11 of the series Hyperinflation and the Dollar. To use this as a growth tool to better understand your own calling, please read Pt 1, Pt 2, Pt 3, Pt 4, Pt 5, Pt 6, Pt 7, Pt 8, Pt 9 and Pt 10.