The Inflation Rates can be Illusionary

Global inflation hit everyone who gets paid in fiat currencies like 99,9% of all human beings. We have witnessed problems in our history regarding inflation rates, stagflation, and crisis. However, this time may be more extensive and destructive compared to the others.

Is it just me or will I never be able to protect myself from the negative effects of global inflation on my purchasing power? In point of fact, the options for investments currently available were severely harmed by inflation.

Real Yields and Price Changes

The precious metals, such as gold and silver, couldn't stay strong against the strength of the US Dollar, and the savings approaches were almost in vain while the fiat currencies were losing value and inflation rates were skyrocketing. In essence, for millions of people, holding their money in fiat currency while it will lose value as a result of this rate of inflation seems reasonable though it is a serious issue of losing purchasing power.

Blackrock showed us something that many people forget about. The real yields are negative during such times. So, people need to have a "better" way to hedge their losses in the short and long term!

Another tricky consideration needs to be made. We're thinking about what people are hearing. What's the case in hospital services, tuition, textbooks, schools, and average hourly wages? Trust me, they are not going well.

Aei.org clearly shows us the desperate situation of our lives. I think there are a lot of things to talk about in this picture, but I want to bring attention to one thing that I think we completely overlook.

Due to the fact that the prices of items produced in mass quantities are comparable to those depicted in this graphic, the items on the blue side may experience some spikes before returning to a stable portfolio. This is due to the fact that they are.

People continue to buy new phones, televisions, automobiles, and clothes in the market, and they might not be aware of the slight changes in the items on the red lines. We have some serious problems that are directly related to your life's "basic needs."Food, healthcare, and housing, basically.

What happens when people in Maslow's hierarchy of needs cannot fully address the physiological and love/belonging issues? Basically, their thoughts and attitudes will be influenced by their financial difficulties, or these people will be able to deal with them.

Can you Hedge the "REAL" Inflation?

To be honest, I was unable to devise a long-term strategy for escaping these "less trustworthy" global inflation numbers. Given that inflation is currently at 8%, now may not be the best time to invest in the US dollar.

Gold has not appeared to safeguard individuals from a decrease in their purchasing power. It will undoubtedly be utilized as a vehicle to fulfill the requirements of being the world's most popular component.

Despite Crypto and/or De-Fi's attractive return when compared to other counterparties, the fundamental issue was that no one was interested in these investment options.

My personal solution is to have a portfolio that consists of Dollars, no other fiat currency, Crypto, mostly, and a decent amount of Gold to hedge as much as possible. I'm not clearly sure if it is the best option but I believe it can be an effective way for me to sustain my well-being during the global turmoil.

What do you do to save your purchasing power?