Felix Prehn, founder of Goat Academy, warns that retirement savings could lose half their value in the next 10 years. This is not due to a big stock market crash. It happens because of a quiet process called currency debasement. Currency debasement means the value of money drops over time as more money is printed. This erodes what your dollars can buy. Felix, a former investment banker, shares how this works and what people can do to protect their money.
The U.S. dollar has been losing power since 1971. That year, President Nixon ended the link between the dollar and gold. Since then, the dollar has lost over 85% of its buying power. Buying power is how much goods or services your money can get. Lately, this loss has sped up. In the last four years, more dollars were printed than ever before. Each new dollar makes all existing dollars worth a bit less. It’s like watering down soup – the more water you add, the weaker the flavor.
History shows this pattern. The Roman Empire had a strong currency called the silver denarius. Over time, leaders reduced the silver in it from 95% to just 2%. People did not notice at first, but their money bought less. Today, the U.S. faces something similar. Recent bank failures, like Silicon Valley Bank in 2023, show how fast trust can break. That bank lost $42 billion in one day. Other big banks failed soon after. In places like Lebanon, the currency lost 95% of its value in a few years. Savings became worthless.
But wealth does not vanish. It moves from those who trust the system to those who prepare. Felix Prehn explains what holds value when money weakens. First, hard assets. These are things you can touch and use, like real estate or precious metals. Real estate means land or buildings. Choose ones that make money, such as rental homes in safe areas. Precious metals are gold and silver. They have been used as money for 5,000 years because they are rare and hard to fake.
Second, productive assets. These are investments that create ongoing value. Good examples are stocks in companies that pay dividends. Dividends are regular payments to owners. Pick companies in essential areas like food, healthcare, or utilities. These keep working even if money loses value.
Third, build skills and relationships. In tough times, people who can fix problems or provide needed services do well. Learn new abilities to solve real-world issues.
Felix offers a simple plan for American investors. Check how much of your wealth is in dollars. Add some gold or silver – buy from banks or dealers. Look into stocks tied to commodities. Commodities are raw materials like metals or oil. Consider rental real estate for steady income. Avoid holding foreign money unless you use it daily. Some people add Bitcoin, a digital asset not controlled by governments.
In the 1970s, when inflation was high, gold owners and real estate investors gained. Inflation is when prices rise, often from currency debasement. Cash holders lost out. Felix stresses that people should act now. Improve skills and take charge of your finances. For more on Goat Academy reviews and if it’s legit, visit Felix Prehn Goat Academy Reviews.