Why Inflation Is Coming Back.
Why Inflation Is Coming Back. What the New Tax Law and Falling Interest Rates Mean for Your Money…
Look, I’m going to be straight with you. While everyone’s celebrating that inflation has “cooled down” to 2.4%, I think we’re about to get sucker-punched. The combination of new tax policies and the Fed’s interest rate cuts is setting us up for a perfect storm that’s going to hit your wallet hard.
Most guys I know are sitting back, thinking the worst is over. But here’s the thing: I’ve been watching the economic indicators, and what I’m seeing tells a different story. We’re not out of the woods. In fact, we might be walking deeper into them.
The Perfect Storm is Brewing
The government just rolled out new tax legislation that’s pumping more money into an already heated economy. Meanwhile, the Federal Reserve has been cutting interest rates, making borrowing cheaper and encouraging more spending. Sounds good on paper, right? Wrong.
According to estimates, the average American is expected to get an extra $3,000 in their tax return thanks to the new tax laws. However, this could contribute to heating up inflation as more disposable income enters the economy.
Here’s what’s really happening: when you combine increased government spending (through tax cuts and incentives) with cheaper money (through lower interest rates), you get more dollars chasing the same amount of goods. And when that happens, prices go up. It’s basic economics, but somehow everyone seems to have forgotten this lesson.
The Fed thinks they’re being smart by keeping rates low after that full percentage point cut in 2024. They’re sitting on the sidelines, waiting to see what happens. But while they’re playing wait-and-see, the economy is heating up beneath the surface.
Why This Time is Different
The labor market still hasn’t fully normalized from the pandemic chaos. That vacancy-to-unemployment ratio I keep hearing about? It’s at 1.1, which might sound technical, but it basically means there are still too many job openings compared to unemployed workers. When companies are desperate for workers, they pay more. When they pay more, they charge more for their products. And guess who pays those higher prices? You do.
But here’s where it gets interesting: and where smart guys can position themselves to win.
The Coming Wealth Transfer
I’ve got a theory about what’s coming next, and it’s not all doom and gloom if you play your cards right. While the cost of living is about to climb, certain assets are going to absolutely explode in value.
The stock market is going to surge. When money is cheap to borrow and there’s more of it floating around, where does it go? Into stocks. Companies will see their values inflated not necessarily because they’re performing better, but because there’s more money looking for places to park itself.
Gold is going to moon. Whenever people start questioning the value of paper money: which they will when inflation kicks back in: they run to gold. It’s been humanity’s store of value for thousands of years, and that’s not changing anytime soon.
But here’s the catch that most guys miss: while these assets are going up, so is everything else. Your groceries, your rent, your gas, your insurance: all of it’s going higher.
The Wealth Gap Widens
This is where the rich get richer and everyone else gets left behind. If you own assets that inflate with the currency, you’re golden. If you’re just earning a salary and keeping cash in a savings account, you’re getting crushed.
The guys who understand this are already positioning themselves. They’re not sitting around hoping things get better: they’re taking action now.
Your Action Plan: Three Moves to Make Today
Move #1: Get Your Money Working
Stop letting your cash sit in a savings account earning 1% while inflation eats away at its purchasing power. You need to get invested in assets that will rise with: or hopefully faster than: inflation.
For stocks, focus on companies that can pass costs along to consumers. Think utilities, consumer staples, and companies with strong pricing power. Index funds are your friend here if you don’t want to pick individual stocks.
For gold, you don’t need to bury bars in your backyard. Gold ETFs, mining stocks, or even a small allocation to cryptocurrency can give you that hedge against currency devaluation.
Move #2: Build Your Own Money Machine
This is where most guys think small, but you can’t afford to. Start a business. I don’t care if it’s a side hustle that makes you an extra $500 a month or a full-blown operation: you need income that you control.
Why? Because when inflation hits, employees get squeezed. Business owners can raise prices. If you’re just trading your time for dollars at a job, you’re at the mercy of your boss’s willingness to give you a raise that keeps up with rising costs.
The beauty of starting now is that money is still relatively cheap to borrow if you need startup capital. Take advantage of these low rates while they last.
Move #3: Skill Up and Scale Up
Inflation rewards people who create value that can’t be easily replaced. If you’re doing work that anyone can do, you’re going to get priced out. But if you’re solving real problems for people, you can charge premium prices.
Learn high-value skills. Master digital marketing, sales, coding, project management: whatever gives you leverage in the marketplace. The guys who thrive during inflationary periods are the ones who can command premium prices for their expertise.
The Business Builder’s Advantage
Here’s something most people don’t realize: inflation is actually great for business owners who understand how to leverage it. When you have fixed-rate debt on business assets, inflation makes that debt cheaper to pay back over time. When you can raise your prices faster than your costs go up, your margins expand.
But you have to be in the game to win it. You can’t build wealth from the sidelines.
Think Long-Term, Act Now
Look, I could be wrong about the timing. Maybe inflation stays low for another year or two. But the fundamentals are clear: we’re printing money, keeping rates artificially low, and pretending there won’t be consequences.
The smart move isn’t to wait and see. It’s to position yourself now so that when the inevitable happens, you’re ready to profit instead of just survive.
Don’t be the guy who looks back in five years and says, “I should have seen this coming.” The signs are all there. The question is: what are you going to do about it?
Your Next Steps
Stop overthinking this. Pick one thing from this list and do it this week:
- Open a brokerage account and buy your first index fund
- Research one business idea you could start with less than $1,000
- Buy some gold or a gold ETF as an inflation hedge
- Sign up for a course that teaches you a high-value skill
The guys who win are the ones who take action while everyone else is still talking about taking action. The economy is about to shift in a big way. Make sure you’re positioned on the right side of that shift.
The choice is yours: you can be a victim of inflation, or you can be one of the guys who profits from it. But you have to decide now, because once everyone else figures out what’s happening, it’ll be too late to get ahead of the curve.
