Crazy FED Inflation Policies & My Pizza Box
Introduction
Right now, we live in a period of uncertainty with a lot of volatility in the air.
It is like a tsunami that is constantly pushing you through your entire body.
You feel you are going to collapse.
It is extremely painful to navigate through the market without thinking about your next move or what you should do to avoid the pain of losing.
Taking the right or blue pill is a fundamental question, but a necessary step!
The status quo either does not allow you in your quest to get more money on the table.
The policy of the FED
Can you imagine with only a few words emanating from the director of the FED?
The entire stock market has lost the same as the price of Bitcoin and the whole altcoins combined.
It is completely irrational and we can clearly see the stock market involves a lot of the emotional state of investors.
You check your investment and you feel a big loss on paper.
Don't worry, you never lose if you don't sell over the panic button your assets.
Sometimes is better to go away and look from a fresh perspective at the situation your face.
Control of inflation
The aim of the FED is to bring back inflation to 2% which is normal in developed countries.
Where we are at the moment is a completely different story.
The price of food and energy has skyrocketed without seeing where it might find a balance.
You just need to make a comparison of goods you purchased before the COVID-19 pandemic.
Then make a comparison of what you pay today!
You feel discouraged and even deeper in the rat race, just barely making a living.
My pizza price dilemma
I love eating pizza once in a while with a good beer.
A simple and momentary pleasure of living on this beautiful planet earth.
I have a store where I go often that sells normally a pack of 4 pizzas for 9.99$.
This price was stable for many years without moving at all.
Do you know what happened this year for the same pack of this awesome pizza?
The price has skyrocketed twice in less than 9 months.
Wow, incredible!
You need to pay now 15,49$ for the same thing and that erodes your purchasing power.
Nothing has changed, just the government has let the printing press go for a while during the pandemic era that is not yet over.
Conclusion
We are trying to survive and live a normal life in this crazy world!
Our need is to go shopping for food but is becoming more difficult to pay a decent price for them.
Your salary does not increase at the same rate!
The FED just let the printing press print during a crisis and try to suppress inflation back to 2% by increasing the rates when inflation is out of control.
This has consequences that basic goods like foods and gasoline you need to pay more for it.
It is like an infernal loop that is difficult to control and sustain.
At least you can control your spending and make better control over your spending.
You can thrive in any market condition!
