The first thing to acknowledge is that inflation fundamentally arises from an overabundance of CASH and a relative scarcity of RESOURCES. ⁣⁣We’ve seen both of these occur over the last 1-2 years. ⁣⁣The money handouts that occurred during COVID were not really “free money” and had to be repaid at some point.

⁣⁣The relative abundance of money versus resources it can be used to purchase means that there is an oversupply. When something is in oversupply its value goes DOWN. ⁣⁣This is of course due to the laws of supply and demand. ⁣⁣Central Banks can control money supply in two ways:

1. Quantitative easing (money printing)⁣
2. Interest rates

⁣Increasing interest rates will make borrowing less attractive as the repayment rate (interest rate) is much higher. This means it is more expensive to borrow money. ⁣⁣This means it is much less lucrative for individuals and companies to obtain credit (borrow). They have less money to spend and therefore money supply in the economy decreases.

⁣⁣Interestingly, 97% of all capital is actually credit. You can imagine how much of an effect this has on money supply when it dries up. ⁣⁣Inflation is often called “Taxation without consent” as it allows the Government to reclaim the value of our wealth without us giving the “ok”.

⁣⁣We CAN’T control inflation but we CAN control how we protect our wealth against it. It starts with educating ourselves on money and how it works.

⁣⁣The point of this group is to provide that information and thus empower dentists.⁣