As the US inflation data has come out now with individual items inflation published too by various research analysts, it is worth to look at the kind of returns that these individual items could have provided had we held any of the items for these 12 months. The result, as expected yet shocking, came out to be in the unanimous support for anything but fiat. The illustration is very intuitive:
This is just a thought experiment and it can/should not be replicated in the real life. The idea was just to highlight the declining power of Fiat against everything. This cements the idea that we need a better store of value. Note: I've deliberately kept out cryptocurrencies and other assets to emphasize that any investment would be better at this point than the investment in Fiat. [link] [comments] |
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