THE DOLLAR EGNIMA
The creativity of the dollar is so powerful it is okay to deprive its value through inflation.
A dollar will look like a dollar today, tomorrow and the next day. The issue stands with the next person not willing to take it from you due to inflation. Or you have to spend more for the same service tomorrow. The dollar has the backing of the US. As long US stands tall so does the dollar.
I heard a term today called *shrinkflation. It is another way to combat inflation but subdue anyone not reading the fine line.
Many companies are not raising prices but they decreased the product you receive to match the actual value. It is really slick what they do since most folks just grab and go. The situation we are living is not new. It has been around for decades. 2008 was a sign. 2022 is clearly a burst. you watch the news, you heard stuffs but usually if it does not bother you, life goes on.
You might encounter a strong dollar or a weak dollar. Either way it benefits business around the world. Strong dollar is not so good for American business. Weak dollar allows other currencies to be strong and folks come here to spend their strong currencies for a weak dollar. It is a little bit colloquial how the understanding of fiat currency. For a while China was messing up with its currency so it can attract foreign currencies. For everyday folks it is a mind game unless you trade with the big pants.
The world economy has been in decline for quite sometimes.(Inflation has been rampant). This is the reason crypto comes to existence. It is a challenge and openness to what you can do to run and manage your finance.
Russia has slashed all US dollar reserves almost to 16%, hoping to get ready and fly on its own.
In this schematic Russia did get rid of dollar in the sovereign fund. So far holding dollar or not is not the root of the problem. It seems they are biting hard and hurting the whole world.
Maybe they should hold crypto instead. Actually crypto is coming and hope it stays apolitical. The beauty of crypto can be seen in the blockchain it is all 010101 with no control entity. Do you remember when most miners use to be in China? For some reasons unknown China banned crypto. I guess freedom and crypto tend to convey a message where any fiat currencies are not welcome. On the other hand, Ukraine welcomed crypto and prove it is a legal way to receive funds.
Crypto in time of war stands to develop a thick skin that will sail high for the future.
While the dollar remains the global currency, China would like to be part of the situation. The connection you and I do not know serve a purpose for the dollar to be where it is. So far there are a lot of fiat currencies in the market. Some are holding well to the dollar, some are losing ground to the losing dollar. As you may know the real value stands with the controlling party.
I have to say in the long run business as usual.
There are ways to make things happen.
Wherever you are, a currency will be use for exchange.
The greenback has support as long there is a need for it.
A fallback is imminent due to the crazy inflation we see these days.
Till then the dollar is crossing the earth.
Stay safe and welcome to Spring.
Posted Using LeoFinance Beta
It does not matter whether dollar is weak or strong, it has been increasing against my local currency for a few years. I wish we could get rid of it as Russia did.
I have seen this happening with chocolates and biscuits 😊 they are becoming smaller and smaller in the same old price.
I don't think it would stay apolitical. Governments will find some way to control them. Taxes are already put in India to the crypto earners
I have seen the term shrinkflation has been going around for around a year and I am not surprised they are doing that. Make the box the same size but there is less inside. It's a scummy tactic. There has also been another term shelfflation where people have been saying that companies are putting in later dates so your food expires earlier too.
Crypto should be apolitical just like most businesses but they want to stick their hands everywhere lately.
Posted Using LeoFinance Beta