6 Charts Explaining Inflation: Why it Matters to You and What You Can Do About It
A revolutionary innovation from 1780 can protect your portfolio from inflation
In the late 1770s, the Revolutionary War wasn’t going well for America. The British Army had captured Georgia and Charleston South Carolina, and the British Navy was blocking the U.S. eastern coast. U.S. Army morale was low as the troops were poorly clothed, poorly fed, and often in need of medical attention. Mutinies were a real threat. Also sapping morale was another enemy: soldiers were facing a loss of value of their pay due to inflation.
But in 1780, The Commonwealth of Massachusetts rode to the rescue, with a financial innovation that perhaps played a small role in the eventual turnaround in army morale, and consequently America’s fortunes. That famous midnight horseback rider, Paul Revere, played a bit role, but not at all in a way you might have expected. Forgotten for centuries, the financial innovation was reinvented in the 20th century, and is a tool for you to consider if you are concerned about inflation — more about that truly “revolutionary” instrument below.
Fast-forward to today and the enemy is back. You’ve probably seen the headlines: U.S. consumer prices recently increased by 4.2 percent over the past year…
