$100,000 Bills, Bank Accounts, & Inflation

During the Depression of 1934, the US issued a $100,000 gold note with President Woodrow Wilson on the front. It was used for Federal Reserve transactions. When the value of the US Dollar is in flux, how do you ensure your money is safe?  

During inflation, a long term bank savings account may not be able to sustain growth. Depending on the rate of inflation, bank interest rates can lag far behind. 

Alternatives to long term savings accounts are US Treasury Bills or Bonds. Although they are high quality, we still have the problem of inflation out pacing them. 

Why is inflation important? Inflation is a silent killer of your hard earned money. As daily goods and service prices increase, your dollar buying power decreases. This is important because your money can erode by being in assets that underperform inflation. 

Also, common inflation statistics such as the (consumer price index) CPI and cost of living adjustment (COLA) which is derived from CPI for government programs are relative of what true inflation is. True inflation can be seen with alternative inflation numbers or shadow stats which can be much higher. 

During times of economic inflation, it’s important to be in alternative assets other than cash. 

Contact us today to protect your hard earned money.


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