When you look at the world we live in we are constantly trading energy for "value" for example you expend energy on various tasks and get paid for it via USD united stats dollars which then hold some value but degrade over time just like all "energy" does.

This gives us a general guidelines blueprint to follow in terms of how money value works over time and how inflation is slowly eating away at values. In fact in just the last few years the USD has lost 25% of it's value meaning you now need 25% more paper money to buy the same thing from a few years ago. That's an over simplified method of thinking about it but it still holds true.

So what are factors that take this into account?

Fed Rates

When the fed raises and lowers rates it means for the most part that the rest of the world has to pay out or borrow that money at a high rate, banks often increase their rates to savings accounts and things like mortgages are most likely going to go up in rate as well.

This often shapes inflation which is targeted at 2% but there's nothing in print that says 2% is a must it's just a general lose term that most countries agree to target.

The Economy

The general economy plays at part as well. As general supply, demand and technological improvements happen these all shift and shape the economy.

Geo Politics

This mainly deals with the USD no longer being the world reserve currency and instead now has competition from crypto and BRICS which continues to onboard more and more countries to it which is causing the USD "value" to drop. While keeping record high interest rates are helping to stem that at least for now. Keeping the rates too high for too long can trigger a recession but lowering them too fast can also cause a recession especially when you were ones the world reserve currently and you now have competition.

A Weak dollar is a great thing for Bitcoin, gold and silver as the dollar loses values assets like crypto, gold and silver take more dollars to get to that level of same buying. This is why you see crypto explode in values when things are starting to lose value. BRICS sparked investors to move into other asset classes and when you look into other assets like gold and silver you are starting to see the same thing happen as well.

Curbing It All

Now this will always be a hot topic of which politics will always get involved with. The latest is Harris suggesting a price ban on companies to avoid from price gouging. The issue we tried this in the last and it ended up going horribly wrong. So nope people don't look at history sadly but my hopes are with how fluid and readily available that information is today that more people wake up to such things and become smarter about it all. Just look at how executive order 11615 went.

This created a system in which producers produced less since their profit caps where maxed out and caused prices to soar even higher. To the point where black markets started to show their face in the USA.

It's also now been reported via a rehash of the jobs report that over the last year there's actually been 1 million less jobs created than was previously reported.

Posted Using InLeo Alpha