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by refurb 2857 days ago
How has the US exchange rate against other currencies impacted your rent and healthcare bill?
1 comments

You are focusing on a currency’s value relative to other currencies.

A currency can be devalued because cost of living can go up without any appreciate in quality of living—your USD buys less assets than it did in 2008.

Just because USD has been doing better than the Euro doesn’t mean inflation isn’t occurring.

This is the main issue that both the right wing gold bugs and left wing crypto anarchists don't seem to understand: Steady modest inflation is a good thing.

If there was no inflation everyone would be incentivized to just hold cash under their mattress and not invest into the economy. When you put your money in a CD or money market account hoping to keep up with (or beat) inflation that money then goes to pay payroll for corporations via the commercial paper market. When you put your money into a savings account hoping to generate interest to keep up with inflation your money gets lent to local small businesses and other people to buy mortgages. Inflation creates inertia in the economy.

We don't have an inflation problem. What we have is a wage growth problem. Crypto nor gold bars will ever do anything to solve that. The issue has nothing to do with currency.