“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”
– Vladimir Lenin
I’m writing today from 71 NyHavn Hotel in Copenhagen, Denmark.
In a few hours the group I am meeting with is going to convene for our first session. Tomorrow, we board a plane for Greenland.
Ostensibly, I am here – and going there – to learn about and see melting glaciers in person. Greenland is one of the last underexplored resource rich islands on the planet. For that reason it caught my attention, as we have been tracking the global trend towards carbon-neutral energy production.
We’ll be meeting up with a CEO at the mining company that is running the show in the Arctic, who has drawn investment from billionaires Jeff Bezos and Bill Gates, among others, because of their unique access to titanium, cobalt and nickel – raw materials essential for building electric vehicles.
I cannot divulge their name because of an unspoken agreement called the Chatham House Rule. Move in silence they say. More on our travels as they unfold. Maybe some pictures too.
In the meantime, here’s a fun fact about Denmark. Since 1960, when the World Bank started keeping records, the Danish Krone has lost 93% of its value. The krone has had an average inflation rate of 4.42% per year for over 60 years, producing a cumulative price increase of 1,363.84%. As a good fiat currency should.
The Danes and the Brits were the only Western European countries to not adopt the euro when it began circulating in 2002. The krone, however, maintains a peg. Which means it gets to enjoy the roughly 8.5% inflation rate of its southern neighbor, Germany.
Before I left for Arctic shores, I jammed with my friend Zach Scheidt about surviving price inflation back home. We explored how fiat currencies like our dollar are “racing to the bottom,” plus why the greenback is relatively strong right now. It’s an interesting predicament. It could be good for American companies, despite massive new spending bills (including an $80 billion allocation for the IRS to target the middle class).
Inflation and taxation, just like Lenin said.
We also talked about how to avoid getting crushed by investing in the wrong dividend stocks. That Mr. Scheidt’s beat, coming from Suntrust Bank and all. He gives a few good picks near the end of our discussion.
Click here to listen to our conversation.
If you’re not aware, Zach is the editor of The Rich Retirement Letter – an investment letter dedicated to helping families grow their wealth so they can focus on what really matters in life. Take it from him. He’s got seven kids.
He’s also the author of Lifetime Income Report, a publication dedicated to finding Wall Street’s best dividend yields – and he also provides the picks and recommendations for Altucher’s Secret Income.
Listen in here, and let me know what you think.
Follow your bliss,
Founder, The Wiggin Sessions
P.S. “Summing up,” writes Katharina Bucholz about the below chart, “the current
weird economy is a contradictory one where high inflation and economic contraction exist side by side. To enter stagflation territory, falling employment would have to be added.”
With a lot of seasonal adjustments – or “hedonic price indexing” as the late Dr. Richebacher called it – the unemployment rate dropped to 3.5% in June.
Weird indeed. Here’s Zach on what these numbers mean for our family finances, plus actionable things you can do to put yourself in a good position.