The DU Lounge
Related: Culture Forums, Support ForumsJust a though. Maybe the growth of cryptocurrencies are why
inflation is so high. If people around the world are investing in cryptocurrencies instead of US dollar investment, then maybe that causes inflation in the US. Same with the euro, rubles, etc... Maybe there is too much government fiat currency around the world. Would explain why US inflation is higher (more people around the world invested in us currency assets than any other government fiat currency). Just a stab. I stopped reading about economics years ago.
unblock
(51,973 posts)Never mind that it's hard to see how it causes inflation.
Our inflation is due to our economy growing at a record pace and temporary shortages due to Covid.
applegrove
(118,006 posts)are not investing in US assets or in US dollars as it is the alternative to crypto. That makes the supply of US currency around the world an oversupply. Too many dollars floating around is like printing money. US has always had an advantage to be a go to currency for people who are middle class or rich around the world along with europe. They put their savings in US or Euro dollars instead of buying gold like they used to. The US money supply uses this to get away with a bigger money supply than other countries per capita. It is the world currency. What happens when there is an oversupply? Inflation. IMHO
unblock
(51,973 posts)So whatever effect may be coming from this or anything else is outweighed by other factors.
applegrove
(118,006 posts)keithbvadu2
(36,360 posts)Most people probably quit reading about economics just after the semester final.
applegrove
(118,006 posts)Orrex
(63,083 posts)applegrove
(118,006 posts)won.