Melting Fiat Currencies & Growing Inflation
The global inflation and central banks' reactions to the growing global risks have gone off the rails. As the inflation rates in the United States and the EURO zone are still rising, the rest of the world suffers a lot in terms of inflation rates and decreasing purchasing power.
Over the last 2 years, the world adopted new rules after the pandemic to deal with its fundamental problems: Printing more money + finding excuses for their long-lasting delusion. Unfortunately, the only groups of people that feel the side effects of the false monetary policies are people like you and me.
Tradingeconomics data shows the situation in the world even before the winter. As the tone of red gets darker, the harsher inflation exists in the areas. You can clearly see that developing countries are not in good shape.
FED is determined to increase the interest rates and make US dollar stronger than ever. Meanwhile, the precautions of the other central banks have no impact on the down-trend of their fiat currency. Eventually, you see such a crazy chart: TradingView Twitter revealed a scary negative correlation between US dollar and the rest of the major fiat currencies. What you can see in this chart is that regardless of their strong(!) narratives behind, neither Yen nor Pound could resist the strength of US DOllar.
People seem to take a safer position for the upcoming global uncertainty and risks during the winter. Investors want to secure their purchasing power by staying in US Dollar & 10Y Bonds though it also has an inflation problem.
Last Dollarization before the Collapse?
Not sure if we need to mention but we all see that the current monetary system is in the verge of a global destruction that will directly impact all of us.
The narrative of "recession" is already bought by some groups and it is quite natural happen that people who face the risks of Gas, Global War, Inflation and Pandemic will re-adjust their spending habits.
When we combine the data in our hands, it is obvious that few people will try to enrich their life quality but the majority is dealing with sustaining it. Unfortunately, in the current banking system, there is no escape from the maze. Rather, you are provided other options to keep running in the maze 😶
For those who live in the developing countries, the only option to lower the decreasing power speed rate is to minimize the amount of fiat currency being held and use only the necessary amount of it. Although the interest rates have stolen the popularity of precious metals and cryptocurrencies, the central banks are running out of alternatives to interest rates.
Posted Using LeoFinance Beta
