
The easiest way to explain "deflation" and "inflation" is with this simple example.
If a man sold his very rare 10 karat diamond to one person for $10,000, there would be several people who would be able to pay $1,000 for it and many others would pay $100 for it. Now suppose the man figures out how to make fake diamonds that even the best jewelers in the world cannot determine if they are genuine. Now he has an opportunity to sell several for the $5,000 offers. Once people find that more of these gems that exist than what they originally thought, what do you suppose is going to happen to the value of the original diamond? Then the man decides to mass produce his huge diamonds and sell them at whatever the market will bring. He sells many of them for even $100, but eventually he can’t sell any of them for even a $100. He keeps producing the fakes until anybody can buy one for $1. The value has been “deflated” because of the increased supply.
To simplify things, the nations of the world, including the good old USA, have flooded the planet with more than 100 trillion dollars in fake money! It has no gold or silver to back it up. The bubbles have all popped and now all commodities are temporarily crashing because people are not buying. They are not buying houses, oil, gasoline, automobiles, and even food. Some commodities naturally depreciate after purchase like automobiles, furniture, and clothing. However, there are other commodities that are a great investment. When gasoline deflated to $1.39 per gallon a couple of months ago, that would have been the buy of the century! But, where would you store all of the 50 gallon barrels of gasoline that you could buy at that price?
In Ecclesiastes 11, God tells people to invest in at least seven different areas, so when “ill winds” or catastrophes happen, it will not affect all your assets. One of the best things a family can do right now is to buy grocery items that can be easily stored. They are better than money in a savings account, and in a few months “deflation” will turn into “inflation.” When that happens, food costs, like gasoline is doing now, will start to go up. There will eventually be shortages that will compound the problem and grocery items could start to go through the roof! Eventually we will have “hyper-inflation.”
Watch for sales and start to accumulate soap, cases of tuna, coffee, paper towels, toilet paper, tissue paper, all kinds of canned veggies and meats. We called some of the canning companies and asked them about the danger of canned goods going past their expiration date. They said that most canned goods will be safe many years past the expiration date as long as the can has NO DENTS and still has its vacuum seal. This can save a family a ton of money in the future!
God says in Proverbs 21:31: “Do your best, prepare for the worst—
Then trust God to bring victory!” MESSAGE BIBLE
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