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Tackle Today: It’s all the fugazi Part I – Hyperinflation

September 18, 2018

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≈ It’s a whazy. It’s a woozie. ≈

– “[…] Nobody knows if the stock is going to go up, down, sideways or in circles. […] It’s all the fugazi. You know what a fugazi is?”
– “Fugayzi, it’s a fake.”
– “Fugayzi, fugazi. It’s a whazy. It’s a woozie. It’s fairy dust. It doesn’t exist. It’s never landed. It is no matter. It’s not on the elemental chart. It’s not real.”

—The Wolf of Wall Street (2013)—

Fugazi is what we traders hold in our brokerage accounts. Digits. Nothing more than that. Fairy dust.

If you live in a country like today’s Venezuela, or in Zimbabwe during 2008, or in Brazil during the late 1980s/early 1990s, or in Germany during the late 1910s/early 1920s, or in Hungary after the WWII as well as in many other countries during the last century, you’d have had your skin in a game called Hyperinflation:

– Venezuela annual inflation rate in 2018: 1,000,000% by the end of the year.
– Zimbabwe monthly inflation rate on mid-November 2008: 79,600,000,000%
– Germany monthly inflation rate in October 1923: 29,500%
– Brazil annual inflation rate in 1990: 30,377% (By the way, Brazil changed its currency 5 times in less than 10 years. Those were the days, man…)
– Hungary rate of inflation on July 1946: 41.9 quadrillion percent.

Governments love to print money and throw liquidity into the system, for whatever reasons. So, on one day, you have money and, while trading, you’re making plans to leave a legacy to your children, to retire for good or to reach your financial independence. The next day, you can’t even buy a comic book with your investments.

Your money has no real value.

Stay tuned, traders. Tomorrow, we’ll be releasing the second part of this series. We want you to move from the fugazi to real value.


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One Reply to “Tackle Today: It’s all the fugazi Part I – Hyperinflation”

  1. ekaranja29 ekaranja29 says:

    Christian you just made my day! Now I can relax knowing my account is just fairy dust. LOL.

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