(Q4 2021)
The Inflation Genie Is Out Of The Bottle

“Inflation is always and everywhere a monetary phenomenon.” – Milton Friedman

Dear Investor,

The nature of inflation is widely misunderstood and misinterpreted. “Inflation” and “currency
devaluation” are tautological – they are two phrases that mean the same thing. When the money
supply increases at a rate that is greater than the wealth output of an economic system, it reduces the
value of each marginal dollar created. Dollar devaluation has been occurring since the early 1970’s.
The value of the dollar relative to gold (real money) has declined 98%. In 1971 $40,000 would buy a
4,000 square foot home in a good suburb. Now it takes $700,000 on average to buy that same home.

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