Inflation primarily impacts those who can least afford it. Since this segment of the population collectively has political power, we may expect that they will apply pressure to reduce the inflation.
Inflation allows companies to increase their prices and earn at least as much as previously, if not more. Therefore, the owners of the companies are both harmed and benefited by inflation.
Inflation relatively benefits those who own land, physical or otherwise productive assets, or commodity-based assets, because those assets will increase in value, as measured in fiat currencies.
Therefore, inflation as in so many issues, highlights the conflict between the population segments of haves and have-nots. In many jurisdictions it is the popular vote which determines taxation and other governing policies.
Therefore, those having both truly significant assets and who are motivated to protect the power of their holdings should consider and choose both their personal residence and domicile of their asset holding entities. There is a possible benefit in domiciles which have smaller populations and are unburdened by poverty, and in island countries. For protective reasons asset owners should also diversify the locations and jurisdictions of their holdings.
There are many benefits of living in the United States, as well as in other larger population countries. However, in those domiciles there is likely to be increasing taxation of income and assets to offset military and other government provided protections and benefits.
In almost all cases for wealthy investors, royalties are a better basis for investing in privately-owned companies, in addition to financing business growth while controlling equity interests in successful companies.
Arthur Lipper, Chairman arthuripper@gmail.com
British Far East Holdings Ltd.