A Practical & Comprehensive Guide To Beat Inflation (Instead of Whining About It)
Money has lost stability and trust
Inflation is up, by a lot.
U.S. Inflation is reaching 40-year high records. Currently, the inflation rate has been set to 7.5% on annual basis. That’s incredible, and I don’t mean that any good.
What is inflation you wonder?
Every year, our money decreases in value due to the new money that is printed by the Federal Reserve.
This way our purchasing power decreases. Let’s take a practical example: when you put $100.000 in a bank account and inflation is set at 7.5% — your money decreases by 7.5% each year.
So after 10 years, in this example, your money is only worth $45.858. That doesn’t mean that you lose the money in your bank account — but it’s just not worth it anymore.
This has to do with the fact that the federal reserve can endlessly print money — therefore it gets less valued.
The Abandonment of the Gold Standard
In 1971, the United States ended the convertibility of the Gold Standard — which means that whoever has a dollar can convert it to its gold value at any time.
