People are often confused about the economic conditions they are living in. Everything has a cool check about label, and the extremes are that either we are living in inflationary times or a period of deflation.
In a deflationary situation, when thelevel of value for goods and services goes down, the value of the dollar goes up. The logic goes seemingly against human intuition.
With deflation, almost everything goes down. Safety and protection is important and if you have all you money in antiques, real estate or hard assets or commodities the measure of value of these goods decreases.
There is only one exception; the dollar goes up by definition. The opposite is true. When the cost of goods and services goes up the guage of value of the dollar shrinks.
Along with deflation, the buck value goes up. Its value goes up against foreign currencies. The buck buys more.
Everything is costing less. The guage of value of a particular currency has nothing to do with how their economy is doing. The value of a currency is base on how it compares with other currencies. You can't evaluate a currency in isolation.
If most things seem to cost less that means you are living in deflationary times. If the price of goods and services are going up, you live in inflationary times.
The coolest, cool personal checks for the safest place to have you money in deflationary times in Treasury bills. The least ugly investment worldwide is U.S. currency.
In a deflationary situation, when thelevel of value for goods and services goes down, the value of the dollar goes up. The logic goes seemingly against human intuition.
With deflation, almost everything goes down. Safety and protection is important and if you have all you money in antiques, real estate or hard assets or commodities the measure of value of these goods decreases.
There is only one exception; the dollar goes up by definition. The opposite is true. When the cost of goods and services goes up the guage of value of the dollar shrinks.
Along with deflation, the buck value goes up. Its value goes up against foreign currencies. The buck buys more.
Everything is costing less. The guage of value of a particular currency has nothing to do with how their economy is doing. The value of a currency is base on how it compares with other currencies. You can't evaluate a currency in isolation.
If most things seem to cost less that means you are living in deflationary times. If the price of goods and services are going up, you live in inflationary times.
The coolest, cool personal checks for the safest place to have you money in deflationary times in Treasury bills. The least ugly investment worldwide is U.S. currency.
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