Purchasing Power of US Dollar

INNO
No photo description available.

Fiat currency, as controlled by governments, is the literal opposite of hard money. It is the softest money in the entire world, in terms of the ease with which it gets created.

One of the things 2020 has shown us is how Jay Powell, the Chairman of the Federal Reserve, can literally call a press conference and create hundreds of billions of dollars, on the spot, on a Sunday night.

Now that is some non-hard money. For every central bank, it’s the same. Fiat money issued by governments can be created in mass amounts at the touch of a button. Central Bank Digital Currencies (CBDCs) will have the same characteristic, which is why they will never qualify as “hard money” either, and never function as reliable stores of value.

Jeff W, Guest blog

 

All posts made on this website are provided for information purposes only. None of the information here is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, Company, or fund. Before making an investment decision, you should seek the advice of a qualified and registered securities professional. Candlr is not receiving payment or commissions from companies for shared content on Candlr website unless its specified. View full disclaimer HERE.

[bbp-topic-index]

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.