United States Inflation rate is right now the highest since 40 years

By Fgeletterd | Michielangelo's Gems | 10 Feb 2022


Just another reason to buy more crypto. Inflation has hit the highest since february 1982. I don't know about you, but in 1982 I was not even born yet. December we had 7%, january has been calculated to have 7.5%. The house markets have been worse for a while now, but we clearly notice it in our wallets once the electricity has been paid for. Or when you do groceries. Some volatile supermarket products even rise 30%, like from Nestle. Last year they were talking about a strong growing economy, but that is not so hard after a disaster year isn't it?

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“Inflation is at a new 40-year high and it isn’t just the rate that should be worrying the Federal Reserve, but also the breadth of corporate pricing power,” said James Knightley, chief international economist at ING. “With wages, commodity prices and supply-chain strains all contributing, the Fed will need to respond aggressively.”

While inflation has been designed to keep being alive as a country and keep the people dumb and poor, I think inflation is an outdated theme. Since the birth of Bitcoin we gained power over our money. Inflation is contrasted by deflation. Let me explain something funny, which a lot of people don't realize or think about:

Inflation, money and whatever is just all relative. What is most important is the buying power. Because in some countries you can do more with $5 than in other countries. Once the buying power is decreasing BECAUSE of inflation, we have a problem. A lot of jobs don't grow or don't grow as hard as they should in salary, which leaves you more poor and poor by the year. I myself am a guidance for handicapped people. Yes my salary rises every year a little bit, almost enough to fight inflation, but not enough. What my country does is sometimes give a raise for the whole country in the healthcare. But still, when that happens, it is 3%. Compensating for all the ´normal´ years. Because I am losing my buying power every year, I get more excited about Crypto in the meantime. Fiat is old fashioned and it has to end.

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Money printing is however, not the only reason why there is inflation. When Spain was ruling with an iron hand over South America and over de Inca's & Azteks, they had a whopping amount of Gold and Silver coming in the country. Out of nothing. Because people were buying that gold and silver all the time, the value of money decreased while prices of goods increased. Here comes the tricky thing: once Crypto will be fully accepted as currency in your country, more and more people will buy it. Value moves from fiat to Crypto. Crypto rises because of this. And this will cause extremely volatile moments. But the difference here is, that we will be shifting towards a new kind of future and ownership. Instead some people printing money and usually involve fraud in that. NEVER FORGET THIS: When the crisis hit Europe in 2008. Millions and Billions disappeared from the European Central Bank. Disappeared I tell you. So they were printing money, you were losing value, and in the meantime some of the printed money got stolen.

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Working for fiat, while we all do it, is a rat race. And we know it. For inflation they invented mechanisms to make it work. To make rich people more rich and normal people dependent. It is called the cost-push effect. If I may explain it really simple: first the prices rice, then your wage. Never the other way around. You're always behind with fiat.

So to make a summary of my full head of information here, here it comes:

-Inflation is the highest since 40 years. Banks taking advantage of this concept exists already since World War 1. Before that there was an era of deflation actually.

-Designed to ´keep us alive' as a country, it is also designed to keep rich people rich and normal people dependent.

-I think inflation is something old fashioned and it should and is going to disappear with Crypto.

-Banks are one of the worst things that ever happened to us.

-Before inflation disappears, we are going to experience hyper volatile inflation rates because people will shift from fiat to a new payment system with Crypto.

-I hope we all agree on the term ´Escaping the Rat Race'

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Fgeletterd
Fgeletterd

Healthcare worker interested in saving money, buying stocks, buying crypto and achieving FIRE! I really love my job. But working 36 hours a week to be in the rat race is just not my thing. And I hope it's also not your thing :)


Michielangelo's Gems
Michielangelo's Gems

Welcome at my blog, I am super excited to start this journey and share my findings and gems. Because investing can be a teamsport, it is already fun to play alone but with Publish0x we can make it into a teamsport. Because investing should not be something competetive for us: we should work together so we can achieve our goals. We can get better together and make our road to our goals shorter!

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