In a world where the value of money is constantly eroding, the path to building and preserving wealth is becoming increasingly challenging.

For both Canadians and Americans, the situation is dire, as the constant expansion of the money supply destroys the purchase value of their currencies.

Canada's M2 money supply—which includes cash, checking deposits, and easily accessible savings—has been inflating at a compounded annual growth rate (CAGR) of 8.77% per year since 1973. To put this into perspective, Canada's money supply has ballooned from 25.5 billion in 1973 to a staggering 2.669 trillion in 2025. This represents a 104-fold increase over 52 years, a clear indicator of currency debasement.

The United States, while experiencing a slightly lower rate of monetary expansion, is no exception to this trend. The U.S. M2 money supply has grown at a CAGR of 6.6% per year over the same period, rising from 810.3 billion in 1973 to an astonishing 21.5614 trillion in 2025. This represents a 26-fold increase, highlighting the significant erosion of the U.S. dollar's value over time.

For Canadians, the implications of a rapidly expanding money supply are particularly concerning. With the money supply growing at nearly 9% annually, the Canadian dollar is losing value at a faster rate than the U.S. dollar, which is growing at 6.6% annually. This relentless expansion of the money supply represents a form of currency debasement, with profound consequences for your financial future. Whether you're saving for retirement, investing in assets, or simply trying to preserve your purchasing power, the erosion of currency value makes it increasingly challenging to achieve long-term financial security.

In this environment, understanding the dynamics of money supply growth and its impact on wealth preservation is critical. Both Canadians and Americans must take proactive steps to safeguard their wealth and future. This could include investing in inflation-resistant assets, diversifying portfolios, or adopting other strategies designed to outpace the relentless devaluation of their currencies.

If you fail to take action to protect yourself, you may find yourself working harder without ever achieving financial stability. The numbers don’t lie: the value of money is declining, and the time to act is now.

Currency debasement is the silent thief that steals your purchasing power over time.

If your investments or income are not growing at least as fast as the money supply, you are effectively falling behind.

For example, if you are earning a 5% return on your investments annually, you might feel like you're doing well. But if the money supply is growing at 6.6% or 8.77% per year, your real purchasing power is actually declining. In other words, you're losing ground.
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Let’s break this down further. Imagine you have $10,000 in savings today, representing a certain amount of things you can buy. At a money supply growth rate of 8.77%, after ten years, those same items would cost $23,178.

​This explains why so many Canadians and Americans feel like their standard of living is declining—because it is. The things you need most, like SHELTER (real estate) and food, are often the ones that rise in price the fastest, making it increasingly difficult to maintain the same quality of life.

"When there's more money chasing the same amount of goods and services, prices tend to rise."

If the money supply grows faster than the economy's capacity to produce goods and services—economic growth (e.g., Canada's GDP growth of 1.5% and the USA's GDP increasing by 2.8%)—it will lead to inflation. Similarly, if the money supply grows faster than population growth (e.g., the USA at 0.5% annual change and Canada at 2.9% annual change), it will also lead to inflation.

As you can see, both GDP and population growth rates in the USA and Canada are far behind the growth of the money supply, creating conditions ripe for inflationary pressures.

Most people rely on traditional investments like stocks, bonds, or savings accounts to grow their wealth. However, these investments often fail to keep pace with the rate of currency debasement.

For instance, if you’re earning a 10% return on your investments annually, but the currency is debasing at 8.77%, your real return is only 1.23%. And let’s be honest—earning a consistent 10% return year after year is no easy feat. This is why so many people are falling behind financially.

In this environment, real estate stands out as one of the few asset classes that not only protects you from inflation but also appreciates in value over time. Unlike cash or bonds, which lose value as the currency debases, real estate tends to rise in value faster than the rate of inflation. This is because real estate is a hard asset—it has intrinsic value and is in limited supply. As the money supply grows, the price of real estate tends to increase, often outpacing the rate of inflation.

​Consider the chart of housing prices in the Toronto area (GTA) from 1969 to 2024, compared to Canadian income.

The disparity is striking.

While incomes have grown modestly, home prices have skyrocketed. This is largely due to currency debasement and a shortage of houses.

Real estate doesn’t just preserve your wealth—it grows it.

One of the most powerful aspects of real estate investment is the ability to use leverage. When you buy real estate, you can borrow money from a bank to finance a significant portion of the purchase. For example, if you put down 20% of the property value and borrow the remaining 80%, you’re leveraging other people’s money to build your wealth. If the property appreciates by just 7% per year, your return on investment is actually 35% because the appreciation applies to the entire property value, not just your initial investment.

​This is why real estate is such a powerful wealth-building tool. It allows you to amplify your returns while protecting yourself from the erosion of purchasing power caused by currency debasement.

If you’re not investing in real estate, you’re missing out on one of the most effective ways to build and preserve wealth in an inflationary environment. Traditional investments like lower-risk stocks, savings accounts, and bonds may offer modest returns, but they often fail to keep pace with the rate of currency debasement. Real estate, on the other hand, not only protects you from inflation but also provides the opportunity for significant appreciation and the ability to leverage other people’s money.

​In a world where the value of money is constantly declining, real estate is one of the few assets that can help you stay ahead. If you want to build real, lasting wealth, it’s time to consider investing in real estate.

Otherwise, you might never save enough to achieve financial independence or secure the future you envision for yourself and your loved ones.
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​The bottom line is this: if you’re not investing in real estate, you’re leaving one of the most powerful wealth-building tools on the table. Whether you’re looking to generate passive income, diversify your portfolio, or create a legacy for future generations, real estate offers a path to achieving those goals. Don’t let fear, lack of knowledge, or procrastination hold you back. Start educating yourself, seek out mentors, and take the first steps toward building your real estate portfolio today. The sooner you begin, the sooner you’ll reap the rewards of this timeless and resilient investment.