The value of the dollar is falling and that’s no secret. The Fed has maintained that it will keep inflation at an average of 2% “for some time.”
This means that interest rate will be kept at near zero until employment picks up. As a result, the value of our dollar will continue to erode as we enter a period of stagflation.
In this type of environment, saving is just plain silly. After all, when the idea of “high interest rate saving account” is no longer a viable solution, what’s the point of saving anyway?
As a strong advocate for saving money, it makes me sad that I can no longer support this thesis blindly. Instead, I’ll use alternative means to keep my purchasing power afloat.
In this post, we’ll discuss ways to combat a falling dollar and how to best use our money wisely so that our wealth can be preserved.
What to Do When the Dollar Is Falling
The Federal Reserve has implemented a series of monetary policies to combat the recent recession.
Basically, it has injected a large amount of money supply into the economy and kept interest rate artificially low. The hope of doing so is to keep economic activities high despite having record high unemployment.
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