INFLATION the biggest scam in history
Maybe there are many who know about inflation, in school we are taught that inflation is the general increase in prices of goods and services and we are even given the understanding that inflation is a normal thing as a picture of economic growth.
But for people who are aware they will understand that inflation is a way for officials to take our money. try to compare the salary increase every year is much smaller than the increase in basic prices that we consume every day. like food, clothing and even education costs. if we look at the annual salary increase, it is small compared to the increase in food prices and education which is 15 to 20% per year, even though if we look at the inflation of the majority of stable countries, the value is always below 5%.
That's why many people feel that they have worked for decades but their lives are still like that, yes because they have worked desperately but their salary increases are actually taken by inflation, the money in the account does increase but the processing power is reduced. in my opinion this is a logical reason why many humans are "made" to be poor and I think this knowledge is not everyone understands because if Henry Ford said if people understood the monetary and banking system there would be a big revolution.
The concept of money has a long history if in ancient times money was related to assets such as gold or silver its function was so that the value of money was stable this system was known as the gold standard and this system was widely used until the 20th century, a simple analogy of the gold standard is like every shirt that is sold it must have pants nah so was money at that time every one of the money printed there must be one gold that guarantees its value to be stable so that anyone cannot manipulate its value, only drawback of this gold standard system is the limited supply of gold So if this system is still used the amount of money in circulation is also limited That's why in the early 20th century many countries began to leave the gold standard system and they began to turn to the fiat system.
We agree that paper money has value even though it doesn't have any backup like before, this change gives freedom for the state to manage its monetary policy but the problem is that this fiat money can go up and down according to economic conditions, Now because the backup is our trust in the Bank and the government means they can control the circulation of money as they want by setting interest rates that previously the value of money was stable 1 to one with other assets (gold) now the ups and downs of its value are precisely regulated by the economic conditions of the country, the Bank and the government since then the money we hold now its value will continue to decrease over time and make the price of goods will continue to rise and this is called inflation.
The best way to avoid our wealth being "stolen" under the guise of inflation is to store wealth in the form of assets, don't store your wealth in paper money. it's better to store gold. REMEMBER this is only to avoid inflation not to seek profit! but if you are already an expert in the world of finance you can save some of your wealth to buy Bitcoin, because bitcoin was created due to a bad monetary system.
This world is full of illusions, the value of inflation is given 3-5% but in fact the price of goods rises higher. that's the importance of critical thinking so that we can distinguish which is right from which is wrong, unfortunately in school we are not taught to think critically outside of the curriculum that has been designed in school we have to follow the words of the book that 1 must 1 must not challenge, just like inflation, this data says 3%, it must be 3%. but if we study it more deeply and are more sensitive to the surrounding environment, we will realize that the value is more than that. that's why there will be 1001 ways from them to create illusions that seem true.
Best Regards. Pangrango
