Types of Inflation and How to profit from it.

Inflation is due to an increase in the money supply.

Money Supply can be increased by increasing the printing of money or an increase in the velocity of money.

Increased in the printing of money leads to demand-pull inflation and eventually leads to hyperinflation.

Increased in the velocity of money leads to cost-push inflation and eventually leads to stagflation.


In hyperinflation, increased in money supply will make the money worthless.

The winner in hyperinflation is debtor or borrower, commodity business, producer of daily necessities and owner of real assets such as Gold and Silver.

The loser in hyperinflation is saver, lender, businessman, fixed pay employees, owner of big-ticket items such as house and automobiles as well as those who keep a lot of money.


In stagflation, the cost of goods increased drastically without an increase in the money supply. This makes each of us lose out in our buying power making us beggar in the house of the rich.

The winner in stagflation is commodity business and producer of daily necessities as well as the owner of big-ticket items such as house and automobiles.

The loser in stagflation is debtor or borrower, saver, lender, businessman, and fixed pay employees as well as those who keep a lot of money.

As a result, both hyperinflation and stagflation are bad for the economy and the citizen of a country.

Moral of the Story: Luck favor those who are prepared.

Be Bless,

Dr. Lion.

The right side of the equation during war (Humanitarian crisis).

War is considered a humanitarian crisis.

During the humanitarian crisis, everyone existence is at stake.

Therefore, everyone will only be looking to survive until the next day.

In order to survive for the next day, we will be in need of the daily necessity of life.

As a result, everyone will pay you in cash or barter trade, if you fulfill their basic needs during a humanitarian crisis.

So, what is our daily necessity of life:

1. Unpolluted air - Oxygen
2. Water - treated or some filter straw for raw water.
3. Food (non-perishable)
4. Clothes (especially warm clothing and night clothes)
5. Shelter away from the epic of the humanitarian crisis or hiking tents
6. Blanket
7. Gasoline
8. Shoes - jogging or hiking
9. Medical supply
10. Personal Hygiene (Soap, Toothpaste, Toilet Paper)
11. Detergent
12. Lamp or LED light
13. Lighter to start a fire
14. Battery
15. Groups of Friends and caregiver
16. Currency as Medium of Exchange - Gold, Silver, Foreign Currency, Coins all in the small denomination.

When the humanitarian crisis end, the economic restart and wealth transfer occurs.

Moral of the Story: Better to be 20 years early than a day late.

Be Bless As Always,

Dr. Lion.

The right side of the equation during an economic crisis.

During an economic crisis, we must be on the right side of the equation.

First of all, what is an economic crisis?

An economic crisis is what happens when economic activity is not feasible anymore for the province or country.

So, what is an economic activity? 

Economic activity is about the supply of money and the demand for goods by the citizen, to be purchased with the money supply in the country

Goods supply that is produced by the people of a country is known as real GDP.

Real GDP multiply by price is nominal GDPs. 

When the supply of money or the velocity of money contracts, we will be in an economic crisis.

As there is insufficient money supply to fulfill the demand for goods purchased.

This leads micro economically to a drop in the price of goods as well as a drop in nominal GDP.

An economic crisis is due to the aftermath of two consecutive drops in GDPs leading to an economic recession.

Economic depression is due to prolongation of an economic recession

As the recession comes, people spend less of the money they have on goods and services in the consumer market (as they are not sure of their next paycheck), leading eventually to a contraction in the money supply in the supplier market. 

This result in business closure and eventually leading to a contraction in money supply in the labor market, making people to spend less and less leading to a more worse recession as the multiplicative factors work on the deflationary loops enhancing each other to reduce severely the money supply in consumer market, supplier market and labor market, which would then leads to bank failure as bank is the intermediaries in all these market, unless apprehended by the government before something more sinister happen.

To be on the right side of the equation, we need to have the things that people are in need during an economic crisis namely the necessity of life such as Grab, Ground, Gasoline, Gold, and Gourd.

On the other hand, we must reduce our possession of luxury goods which fetch high prices during an economic boom due to consumers' wants and vice versa during an economic recession. 

Be Bless As Always,

Dr. Lion.

Which one is real money?

If you ask someone, which one below is real money?

1. Monopoly money
2. US dollar
3. Gold
4. Cryptocurrency

An adult like you and me will answer US dollar.

A kid will answer gold.

A futuristic person will answer cryptocurrency.

Moral of the story: A thing is worth how much a buyer willing to pay.

Be Bless,

Dr. Lion

Stages in Market Cycles and how to profit from it.

Stages in Market Cycles


1. Market contracting - buy high-quality Bond.

2. Reduction of interest rates - buy Gold and Silver

3. Hit bottom - buy Financial

4. Growing (Increase in GDP) - buy Technology, Property.

5. Late Stage (Reduction in GDP) - buy Commodity

6. Recession (Sell-off) - Sell as All Assets decline, buy Defensive such as Pharmaceuticals & Utilities.

Moral of the Story: Don't fight against the trend as the trend is our friend.