Economy

Inflation Is Now a Reality, But You Can Still Live With It

I lived most of my life in an emerging country with high inflation and want to share some quick tips to help you survive.

Photo by Twitter @ethmessages on Unsplash

Most companies in the US again adjusted the salaries by 2–3% thinking that inflation is not a threat and that it will go away soon. They do not see it coming. Inflation is a real threat and is part of our lives from now on. Instead of denying it, start learning how to cope with it.

The bad news is that it is now only the US that is at risk of inflation but all the countries around the world. Developed countries are also at risk and have more to lose than the developing countries in the merging markets.

First things first.

Why inflation is not temporary but permanent?

• In the early 1800s, the gold standard started in England. The amount of money printed was backed up by the same value of gold.
• When FED was established in 1913, they switched to partial use of the gold standard. The 1:1 ratio between USD and gold was abandoned.
• After WW2 in 1944, the Bretton Woods agreement made USD the only reserve money in the world.