Welcome to another episode of the Michael Yardney Podcast, as today we discuss how to prosper in a financial world that's rigged against you.
Now that's a bold claim, but my special guest today is Rob Dix, author of the book The Price of Money, and we'll be discussing money, inflation, the world of finance, and how to position yourself to prosper in the current environment.
Conversation with Rob Dix
While the focus of this podcast is usually about property, there is always the underlying theme of finance and money, and quoting the words of one of Britain’s best-respected finance experts Rob Dix, my guest today and author of the book The Price of Money, “We spend their entire lives trying to get hold of money yet we have no idea where it actually comes from.”
He goes on to say, “Then we're expected to make intelligent decisions about what to do with the money we earn when we are never taught how.”
Now I’ve been listening to Rob’s Property Podcast (Britain’s most-downloaded investment podcast) for quite a few years, and I recently read his book The Price of Money, which I found fascinating and thought I must have him on this podcast to share his ideas with you.
There are some similarities between the property markets in the United Kingdom and Australia, and in general, they are affected by general economic conditions, consumer sentiment, inflation, and interest rates.
Some of the highlights of my chat with Rob:
- What is inflation, and what causes it?
- A sustained increase in prices over time, related to an increase in the supply of money
- The pound has lost 99% of its value in the last 100 years and 50% over the last 20 years!
- Why has the amount of debt – government and personal –exploded since the 1970s
- Historically, money is anchored to something like gold, which created restraint
- That was completely done away with in 1971 and the switch to fiat money
- Policies that were introduced to survive the crash of 2008 have directly caused inequality to increase inflation (and the government knew this would happen).
- Quantitative easing for the first time
- Huge asset price boom since 2008
- The government created money out of nothing to pay its own bills when Covid hit. Why was that a major cause of the inflation we’re living with today?
- Too much money was created to support people, with too few things to spend money on.
- Why do we need to be prepared for inflation to remain high over the coming years?
- A lot of deflationary factors are in reverse.
- Everyone’s got huge amounts of debt, so the way to pay it down is to reduce its value.
- What should we be investing in, given the likelihood of continued high inflation?
- Inflation and rising costs are bad news for many assets
- In this environment, real assets are the thing to go for. (i.e.: property)
- Whether now is a bad time to buy a home or make an investment in property.
- Should cryptocurrency have a place in most people’s portfolios?
- When is the next economic collapse coming? How can we prepare?
Links and Resources:
Rob Dix – author of The Price of Money
The Property Podcast with Rob and Rob
Have a chat with Ken Raiss to ensure you have the correct asset protection strategies in place – click here
In turbulent times like we’re experiencing, why not get the team at Metropole on your side to give you holistic property and wealth advice– find out more here
Why not get your bundle of E-books and resource as my gift for subscribing to this podcast www.PodcastBonus.com.au
Some of our favorite quotes from the show:
“I guess we’ve got to prepare for a period of higher inflation over the coming years.” – Michael Yardney
“I started investing in a period of inflation.” – Michael Yardney
“Rents have gone up at least double-digit growth, but in many of our big capital cities, 20% plus over the last year.” – Michael Yardney
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