Let's educate ourselves. USD yung reserve currency ng buong mundo so lahat naman ng major currencies humihina and yun na yung trend the past year. Around 11%-15% na yung increase ng USD value against other currencies (52 week range).
One major cause of this is the rapid rise of inflation in the US. Around 8.6% yung inflation ng US for the month of May (one of the highest in the last 40 years). Humahabol na tayo at 5.4% dito sa Pinas. Bigay tayo ng example para mas maintindihan yung inflation: sabihin natin na may 1M ka sa bank (next to nothing naman yung interest na binibigay ng banko dito sa Pinas unless all digital bank gamit mo). If i-apply natin yung 8.6% inflation from the US, 914,000 nalang yung buying power ng 1M mo (946,000 if yung 5.4% inflation ng PH gagamitin).
And dahil nataas yung inflation rate, si papa Pow ng FED (Federal Reserve System) is raising interest rates aggressively (75 bps last May and another 75 bps this July and 50 bps on September). Goal nito is to control inflation rate and in 2 years pababain to around 2%. Kung invested ka sa stocks or cryptocurrencies, alam mo na duguan the past couple of months yung mga portfolio natin because super hawkish ng FED. Sabi nga ng mga experienced investors, "do not fight the FED". Full on bear market na yung crypto market and nasa bear market territory na din US stocks.
Madami pang macroeconomic factors na nag contribute dito like supply chain issues (mainly sa China dahil halos lahat naman ng major manufacturing is dito nangyayari). The Ukraine-Russia war, which is one of the reasons bakit nataas yung prices ng oil. Isang category din yung oil/gasoline sa CPI (Consumer Price Index) kaya sobrang tumataas yung inflation. Lastly, isa pang salarin yung pag print ng trillions of dollars ng US from 2020-2021. Sa mga crypto bros jan alam naman natin na shitty yung tokenomics ng USD and other fiat currencies.
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