Fiat Currency Death Spiral

in #leofinance2 years ago


There are some countries that are doing much worse with inflation right now like Argentina. Many people who are living in other parts of the world might wonder, how are people able to afford anything at all in a region seeing something like 50% or 80% inflation? Is everyone seeing an equivalent salary rise to match the rising inflation? If not we can see how things could quickly spell trouble as far as homelessness and starvation if people struggle to afford what they need.

Surviving inflation in Argentina

One recent report on the topic of inflation in Argentina asked people on the street how they have been able to get by and overwhelmingly they shared stories of transferring their deteriorating fiat dollars into something else, like the US dollar, as quickly as possible.

Others might invest back into their business straight away or invest elsewhere but in general many seem to be operating under the consensus that they want to get rid of that paper fiat as quickly as they can. Some are papering their walls with it because it is cheaper to use than traditional wallpaper, what other countries might face a similar future with tackling inflation? Argentina isn't the only region.

In Argentina they are seeing interest rates over 69%, rates have been increasing as they've had some of the worst inflation.

Earlier this year we saw reports that anti-IMF protesters had been allegedly burning tires and were getting vocal, protesting in the streets about their discontent.


source

Those going through the situation have reminded others around the world not to panic and they've reiterated that they themselves are getting through it, people have survived in the face of such troubling economic times. Of course there will still be widespread pain and lowering of living standards for many, economists and others have warned, but people have still demonstrated resilience repeatedly in the face of such troubling economic times.

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Yeah I knew Argentina was in bad shape. A crypto currency is digital and like China may be used to track transaction and control the behavior of people like a social credit score. Not necessarily a good thing in that case but nations are headed that way.

We had 20.70% inflation rate in Hungary in September. This may not look that high, but the salaries are not following the inflation. Many people worry whether they will be able to afford to buy foods and drinks, or not, or pay the monthly bills, including the rent, or not. Sometimes people have to choose between the these two things.