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Inflation
Learning and Fighting Resources

What is Inflation Tax?

Inflation is a hidden tax created by governments and central banks.  It is caused by an increase in the money supply which leads to the devaluation of, or the reduced purchasing power, of that money. Nothing more, nothing less.

Who Is Responsible for Inflation Tax?

  1. Government of Canada every time it runs a deficit – as it does 75% of the time.
  2. Bank of Canada every time it prints more money – 1. when banks loan money (Fractional Reserve Lending), and 2. when the government runs a deficit.

What Are The 6 Most Important Issues of Inflation Tax? 

  1. Inflation leads to uncertainty due to increased mortgage and loan interest rates, taxes, and consumer prices
  2. Inflation leads to uncertainty and fear due to decreased purchasing power
  3. Inflation leads to hopelessness due to decreased financial security, independence, freedoms, and choices now and in the future
  4. Inflation leads to greater class divide due to unattainable asset and housing prices
  5. Inflation leads to codependency on government due to decreased wealth building opportunities​​​​​​​
  6. Inflation leads to tyranny due to arbitrary government overreach

All this is linked to you have NO CONTROL. Read on to learn how you can get control!

Impact of Inflation Tax

2% annual target inflation does not sound like much.  But it is annual, it’s not always 2%, and its compounded.  Since 1935 the purchasing power of $1.00 is now worth only $0.05.  

Solutions to Combat Inflation Tax

  1. Tell your MP enough is enough – no more deficits and get their act together on spending – they were 12 months late stopping Covid subsidies.
  2. Tell the Bank of Canada to get their act together – they were 12 months late raising interest rates – the result: higher and more severe interest rate increases
  3. Stop borrowing from deposit-taking banks
  4. Start an IBC policy – on you, your spouse, parents, children, grandchildren, great-grandchildren – and have them do the same

How Does an IBC Policy Act as a Hedge Against Inflation Tax? 

  1. Infinite Banking Concept (IBC) policy premium costs decrease overtime relative to inflation
  2. The underlying IBC policy participating portfolio adjusts with economic changes
  3. IBC policy cash values remain liquid for opportunities to purchase other assets that help protect your purchasing power
  4. You can remove yourself from the Fractional Reserve Lending banking system and therefore, the expansion of credit and inflation

More on IBC Policies: 

Here is some recommended reading/viewing on the devasting effects of inflation tax:

Check back for updates to this list.

To discuss things you can do to protect yourself from the impact of inflation.

Inflation Learning & Fighting Resources