RE: 2022 - The Year of Global Inflation
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How could you respond to this post which states absolutely contradictory idea?
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How could you respond to this post which states absolutely contradictory idea?
I have just learned that the money printed by FED is directly related to the investment banks contrary to what is accepted as a phenomenon. Regardless of what the reality is, people / economist review the actions by FED like the operations done by other central banks. Consequently, the markets react to the news coming from them accordingly.
When it comes to the other countries, we see a different story. In the developing countries, the dollarization is exponentially increasing since people lose their faith in the managers of their fiat currency. Since the USD is the reserve currency that is relied on by millions of people in hard times, the existing balance gets harder to sustain. In the vicious cycle of the other countries, they are getting loans in USD, their currency loses its purchasing power against USD, they pay for the loan in USD (more fiat is used for it) and the cycle happens for years. This is what already happens in developing countries (I witness things as a person experiencing) and the waves is likely to hit the developed ones in the macro perspective.
This is what I see/experience and these are my personal ideas.
How about you mate? What do you think/expect?
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I live in Poland, recent reporta indicate inflation as something around 6-7%, I don't remember. A lot of YT experts are talking about turkish scenario, since the story is very similar, populist gov uses monetary policies to fund their expenses. Ratio of polish zloty (PLN) to USD or EUR alteady reflects these changes. The other thing is boom on the real estate market and growing costs of energy and transportation, it creates great conditions for inflation.
As for the situation in US it's really hard to say for me. The popular optics is inflation will be only higher, however the post I shared states something completely opposite, and yeah, there is hige demand for dollars worldwide. But can't this popular optics actually change actual dollar value perception in people eyes? This, together with supportive environment might lead to higher than usual levels of inflation, can't it?
My only safe bet seem to be at the moment to stay in crypto untill next highs.