Watch this magic trick.
You and your friend each have $50 in a $100 total supply of money. You each own 50%. A “big bad wolf” walks in, creates $100 out of thin air, and gives it to themselves. Suddenly, there’s $200 in the system. They now hold $100, while you and your friend still have $50 each. Without losing a single dollar from your wallet, your share of the total money supply has dropped from 50% to 25%. Half your wealth has quietly been stolen. That’s how money printing works—it silently transfers purchasing power from you to whoever gets the new money first.
The modern “big bad wolf” is central banks. The U.S. Federal Reserve, like many others, prints money constantly. In 1959, there were $289 billion in circulation. By July 2023, that number had surged to $20.9 trillion—a 7,127% increase in supply, or roughly 6.92% more money created every single year. Where does that new money flow? For every $100 printed, $56 goes to the top 1%, while just $0.60 reaches the bottom half of the population. That’s a staggering 93:1 ratio in favour of the wealthy. It’s no wonder the wealth gap keeps widening—those closest to the money printer benefit the most, while the rest of us watch our purchasing power erode.
If your money is sitting in cash, you’re on the losing side of this system. Inflation isn’t an accident—it’s built in. Central banks openly mandate a 2% annual inflation target. That’s essentially a 2% wealth tax on your cash holdings every year, before accounting for higher real-world inflation. The only way to win is to own assets that rise in value faster than inflation.
Real estate is one of the most powerful tools to protect and grow wealth in this environment. It is tangible and limited—unlike money, it can’t be printed into existence. Rental income tends to rise over time, often keeping pace with or beating inflation. Property values appreciate as the cost of living increases. And if you borrow at a fixed rate, inflation works in your favour by making your debt cheaper to repay in future dollars. In short, while inflation quietly erodes savings, it often amplifies the value of well-chosen real estate investments.
At Passive Investing Canada, we focus on acquiring and developing income-producing properties in markets with strong fundamentals—places where demand is rising and supply is tight. This approach provides our investors with stable, predictable income streams, long-term appreciation potential, and protection against the silent theft of inflation. Instead of watching purchasing power slip away year after year, you can position yourself on the receiving end of the money-printing effect—with tenants paying rent that grows over time and property values appreciating as currencies lose value.
Inflation isn’t going away. The real question is whether you’ll let it erode your savings—or use it to your advantage. At Passive Investing Canada, we choose the latter.
