Does the young man on the right, who puts most of his wealth in Bitcoin, care what happens to the U.S. dollar? If gasoline shoots above $10 a gallon, will he notice? As a renter, does he worry about house prices?
Does the man on the left, who has his wealth in government bonds, worry about the Fed? Does the man on the left notice when heating his McMansion quadruples in price?
Both inflation and deflation affect old and young generations differently. We’re not in it all together.
There’s an element of inflation rarely mentioned. The element of “F-OFF” from the young. An element of “I’m not going to sell to you cheap so you can maintain your standard of living”.
Inflation sends another message. Old money aging out of relevance.
There is always a struggle between old and young generations. In the 1920s the old wealth wanted to maintain their wealth to pay their servants. The young, of both servant and master, wanted to buy a jalopy and head out West. Who’s wealthy now?
Again, I’m not defining all inflation, or arguing whether it’s good or bad, etc., etc. I just want to point out who rises on the other side of an inflationary burst.
If you’re young, don’t worry too much about inflation. In the end, you’ll be the living one.