Currencies are Collapsing Everywhere.

[kesmex]

It is a fact that the market is chaotic and for sure there are many reasons,
this condition is certainly not easy and surely we all hope this can end soon,
let's follow the progress and see what it will be like

What developments to follow if you yourself say the market is in chaos?
I'd like to know some of the reasons you might know about the cause of the market turmoil you're talking about. Try to express it here so that the discussion becomes more interesting because everyone at this time has a different view of market conditions and also the condition of the world economy.

Yes, I think we agree that the current global economic condition is not doing well.
besides that inflation also occurs everywhere and it indirectly has an impact on the crypto market,
negative news keeps the market going down

[Swordsoffreedom]

Central banks can do anything they want, but nothing is going change the fact fiat currencies will colapse at some point, because their system has been unsustainable since the beginning.

CBDCs can be introduced, but they mean nothing different from fiat. In fact it is just a digital crypto version of fiat currencies which will remain centralized and devalued by inflation. I believe the reason central banks are going for CBDC is because it will be easier to track and control citizens' funds. It's an efficient tool against money evasion.

If I remember correctly, fiat money has been around for a long time, China has established a fiat money system since the 13th century. While Europe used fiat from the 17th century but then also met some failures, it was not until the 20th century that the United States used fiat again and over the years fiat was also widely used in the world. It can be said that the fiat empire may collapse in the future but instead will be another currency created and controlled by the government, they are not so different in nature. So I don't think fiat will collapse but evolve, upgrade to something better but the essence remains the same. Maybe as you say CBDC will be the next version of currency but they are no different from fiat currencies today.

[DrBeer]

Over the past 3 years, the world has received several severe stresses, which of course led to the stagnation of the economy and, as a result, the depreciation of local currencies.
- Covid-19. The strongest blow to local economies. The fall of industrial production, the shutdown of a huge number of enterprises, and the chain reaction of the stoppage of related businesses. Destruction of the economy and a huge burden on the social budget.
- A new round of terrorist war unleashed by Russia against Ukraine. Which led to a crisis in the market of wheat and other crops grown in Ukraine and Russia. This is without taking into account the hundreds of thousands of Ukrainian citizens killed by terrorist troops from Russia. Also destroyed a significant part of the industry of Ukraine. Also, the West is forced to provide Ukraine with huge financial and technical assistance. Forced - because they want Ukraine to stop Russian state terrorism on its territory. The EU does not want war, it is easier for them to "pay off" with money than to allow war into their countries.
 - A new round of economic terrorism against the EU, unleashed by Russia. First of all, in the energy market.

[zasad@]

I found inflation statistics
https://twitter.com/stats_feed/status/1575875921231630336?

"Euro area inflation rates (%):

Estonia 🇪🇪 24.2
Lithuania 🇱🇹 22.5
Latvia 🇱🇻 22.4
Netherlands 🇳🇱 17.1
Slovakia 🇸🇰 13.6
Greece 🇬🇷 12.1
Belgium 🇧🇪 12
Austria 🇦🇹 11
Germany 🇩🇪 10.9
Slovenia 🇸🇮 10.6
Portugal 🇵🇹 9.8
.
.
Finland 🇫🇮 8.4
Malta 🇲🇹 7.3
France 🇫🇷 6.2"

There are big problems in the European Union, and if another country decides to do Brexit, then this system will quickly fall apart.

[BuNga_cute]

It is a fact that the market is chaotic and for sure there are many reasons,
this condition is certainly not easy and surely we all hope this can end soon,
let's follow the progress and see what it will be like

What developments to follow if you yourself say the market is in chaos?
I'd like to know some of the reasons you might know about the cause of the market turmoil you're talking about. Try to express it here so that the discussion becomes more interesting because everyone at this time has a different view of market conditions and also the condition of the world economy.

Yes, I think we agree that the current global economic condition is not doing well.
besides that inflation also occurs everywhere and it indirectly has an impact on the crypto market,
negative news keeps the market going down

It's true that too much negative news has emerged this year, that's why the market is difficult to recover. Many investors panic and sell their assets
at low prices, which only makes their situation worse. We should be able to be wise and do not immediately panic seeing a bad market situation.
Moreover, the market crash is not the first time this has happened, so don't be pessimistic about what has happened this year. Because this
bad situation is only temporary, we have to believe the market will definitely recover, all we have to do is be patient with this situation.
We can take advantage of the ease of internet access to find side jobs so that our income increases. Then use the extra money we have to buy
some top coins for long-term investments. By doing that, I believe that our economy will slowly improve, although I admit that doing so will not be easy.

[avikz]

It's quite common for high inflation regime. It effectively reduces the purchasing power of any currency. Imports become costlier, internal transportation cost increases and the same trend follows for the commodities. There are couple of ways to control it and central banks everywhere are taking actions accordingly.

Now I see some people are vouching for CBDC to control it but you need 5o understand that CBDC is just a digital version of the main currency so it's not helpful either. But this is the best time to enter into stock market for medium to long term.

[fullhdpixel]

Countries are pushing to develop their own CBDC, taking into account the best way to have control over the people's money. Very few countries are in the exception list, while majority of the countries face the currency value collapse. In most of the countries election time controversy is going to be the collapsing currency value. In my country a major variation is experienced against dollar and hope this will be a big problem for the ruling government in the upcoming election.

They are turning digital as well. They know that there are so many digital currencies right now but that didn't stop them from creating their own. I think they simply don't trust the others. Cbdc's are like a digitalize versions of fiat money so anyone who uses it are still in control of the government or banks.

For now only a few countries are doing this but I believe that the list can extend later on. I can see this as the next big trend here in the online world or in cryptos since they have some relation somehow. I don't think having a cbdc can be the solution of a collapsing currency of a country. They aren't the same as a crypto that has a limited supply.

[Stella Mese]

the value of the currency continues to decline in value. even that happens continuously from year to year. not just when there is inflation. But now inflation is getting worse, so inflation makes the decline in value faster than usual. that's why storing the value of assets in fiat money is a risky thing if stored for a long time. we can see the decline in value from the price of gold. if 20 years ago gold was not as high as it is now. well now the price of gold really continues to increase albeit slowly. and it's not actually the gold price that has increased but the value of the currency has decreased. because the value of gold is still fixed. and the value of money decreases, it looks like the value of gold has increased. when in fact the value of the fiat is decreasing.

[iv4n]

These days I saw some interviews with "our beloved" president and his minions! They are talking about Euro and if the EU doesn't act and let Euro go deeper my country and other satellite countries can suffer a lot. Inflation is already high here, things are getting more expensive on weekly basis... printing more money is probably the worst option, but is there anyone who thinks that politicians care about that?!

Well, I guess it's time to move from dollar and euro, probably a lot safer options are gold and Bitcoin! If the world chooses crypto it will be a real fiesta after the next halving!

[TimeTeller]

It's quite common for high inflation regime. It effectively reduces the purchasing power of any currency. Imports become costlier, internal transportation cost increases and the same trend follows for the commodities. There are couple of ways to control it and central banks everywhere are taking actions accordingly.

Now I see some people are vouching for CBDC to control it but you need 5o understand that CBDC is just a digital version of the main currency so it's not helpful either. But this is the best time to enter into stock market for medium to long term.

But if you are going to invest in the stock market, you need familiarity what stocks are worth investing long term.
In that case, you need to understand also their market performance throughout the years and their possible future.

the value of the currency continues to decline in value. even that happens continuously from year to year. not just when there is inflation. But now inflation is getting worse, so inflation makes the decline in value faster than usual. that's why storing the value of assets in fiat money is a risky thing if stored for a long time. we can see the decline in value from the price of gold. if 20 years ago gold was not as high as it is now. well now the price of gold really continues to increase albeit slowly. and it's not actually the gold price that has increased but the value of the currency has decreased. because the value of gold is still fixed. and the value of money decreases, it looks like the value of gold has increased. when in fact the value of the fiat is decreasing.

Diversification of your funds, will help you keep afloat during this high inflation.
And one is investing in gold and other valuable metals. You can also take a look in real estate properties.
Because if you think the price of gold is not really increasing, real estate however, continues to increase over the years.

[Cookdata]

Inflation is very bad and I think most countries are experiencing their worst cases that has happened before 20 years ago which I hope should have all by now recovering but we all know there is a war ongoing that the other parts of countries have neglected, the FED is also part of the whole stuffs but politics aside, Russian currency has been getting some values over US, that will be at advantage for them to pay back their debt as if they stole it from them.

I think after this global recession, I’m very certain that country like mine will want to remove a certain currency out of the circulation, because those kind of currencies wouldn’t be able to buy anything again in the country.

[Hydrogen]

Unfortunately, currencies are usually mirrors of a nation's economy. If a currency collapses, it is only a reflection of the state of the union.

It is common for the majority to inadvertently support things which are bad for their own job markets, economy and standard of living. Which means that the biggest gains and improvements can be made by average and ordinary people making a bare minimum effort to follow current events and be better informed. To an extent, we are seeing this occur. Public consciousness has improved by leaps and bounds since the Trump vs Hillary race in 2016.

People appear to be evolving. Becoming better informed and more knowledgeable all of the time. Part of this has to do with the majority not paying much attention to politics in previous years. Once people felt forced to follow politics and current events more closely by the global pandemic and similar trends. They began to learn at an accelerated rate.

While our situation may not be ideal. At least we might find hope in the trend of people learning and becoming more mindful about how politics can affect their daily lives. People are definitely becoming smarter and more knowledgeable on the economy, finance and similar topics. In that sense perhaps we will witness linear improvement.

[The Sceptical Chymist]

Is this a new alt of Polo7 and the rest of the usernames I can't recall at the moment?  The writing style and content look very much like it is--and I'm sure as soon as people tune out to Editbar, there's going to be another account popping up in the Economics section spouting the same stuff.  OP, your response?

Central banks can do anything they want, but nothing is going change the fact fiat currencies will colapse at some point, because their system has been unsustainable since the beginning.

That may well be true, but I don't think either one of us is going to have to worry about the entire fiat system (and I'm talking globally) collapsing in our lifetime.  I've been hearing predictions to that effect for years now, and I'm sure such predictions were being made well before I was born.

I don't know if things were better on the gold standard or not, but it doesn't seem like there's any way to go back to something like that, where money is backed by something more valuable than a country's word or the size of their military, if you know what I mean.  Then again, nothing is backing bitcoin and it's a form of money, an asset, and a store of value....so who knows?

If CBDCs become the norm and the government has unrestricted access to everyone's financial records, that's just one step closer to the world becoming a dystopian pit of misery straight out of George Orwell's imagination.

[Xampeuu]

Inflation is very bad and I think most countries are experiencing their worst cases that has happened before 20 years ago which I hope should have all by now recovering but we all know there is a war ongoing that the other parts of countries have neglected, the FED is also part of the whole stuffs but politics aside, Russian currency has been getting some values over US, that will be at advantage for them to pay back their debt as if they stole it from them.

I think after this global recession, I’m very certain that country like mine will want to remove a certain currency out of the circulation, because those kind of currencies wouldn’t be able to buy anything again in the country.

the war will accelerate inflation, especially for European countries that are experiencing an energy crisis. the longer the fiat currency seems to have no price, therefore of course later when conditions have peaked something new will emerge to overcome the problem of fiat currency if it is deemed no longer relevant. but for now I think fiat currency still has the trust of the government, so the government still prohibits the use of other alternative currencies

[zasad@]

Inflation is very bad and I think most countries are experiencing their worst cases that has happened before 20 years ago which I hope should have all by now recovering but we all know there is a war ongoing that the other parts of countries have neglected, the FED is also part of the whole stuffs but politics aside, Russian currency has been getting some values over US, that will be at advantage for them to pay back their debt as if they stole it from them.

I think after this global recession, I’m very certain that country like mine will want to remove a certain currency out of the circulation, because those kind of currencies wouldn’t be able to buy anything again in the country.

There are 2 exchange rates in Russia: official and real. If the exchange rate of the Central Bank is 60 rubles per dollar, then you can actually buy a dollar for 68-70 rubles. And so with many currencies, although the main currencies are the dollar and the euro. Many economists say that the price of the ruble will fall by the end of the year because it is unprofitable for the economy.

[so98nn]

More or less bitcoin has something to do with the economy that’s failing in centralised way. Obviously we can’t put all the credits ( ) to bitcoin because it’s still flourishing and putting its efforts to grow all over the world. With the bitcoins decentralised monetary system huge sum of money is now vanished in the world of crypto space and thus it just sown the seed of instability amongst traditional banking system. Peeps now know that they don’t need banks all the time to save up money, they can do with alternate ways too.

However, as we passed pandemic and on going war, everything seems to be crumbling upon itself in terms of financial management.

As the inflation will grow ultimately dollar index will rise because most of the developing countries will loose lot of value in the process as they could not tackle the inflation.

[Republikcoin.com]

Inflation occurs anywhere because the government or central bank is too free to print banknotes, when the amount or stock of money is too much, it will cause serious and complicated problems, back like ancient times using gold and silver is the best solution to avoid inflation.

The occurrence of inflation also has causes and effects basically because inflation will not just happen without any cause and one of them is what you say. But to deal with it by returning to using gold and silver at this time is a bit difficult in my opinion because generally everyone still uses paper money to do the necessary shopping even though the price of goods has started to increase and the value of the currency has started to decline.

And in my opinion a more effective way to deal with this inflation problem is to lower the price of basic goods or raw goods so that the cost of producing goods or the cost of processing finished goods decreases which in the end the price of goods that are finished and ready to be consumed by everyone is no longer expensive.

[FanEagle]

Inflation is a good thing normally, in a small amount because that means you are growing as a nation and you should be growing. When you get like 2% inflation rate stable for decades without ever going above or below it, that means you are growing and you could get that much increase on your salary as well, plus some promotions time to time (not every year but hopefully every 5 years at worst case) and that means you are going to increase a lot more during those years, all of which equals to you becoming richer and richer.

But, when you have 10%+ inflation and 5% increase on your salary, there isn't really an increase, it’s a drop, and people need to realize that, and this causes us to get worse.

[Silberman]

Inflation is a good thing normally, in a small amount because that means you are growing as a nation and you should be growing. When you get like 2% inflation rate stable for decades without ever going above or below it, that means you are growing and you could get that much increase on your salary as well, plus some promotions time to time (not every year but hopefully every 5 years at worst case) and that means you are going to increase a lot more during those years, all of which equals to you becoming richer and richer.

But, when you have 10%+ inflation and 5% increase on your salary, there isn't really an increase, it’s a drop, and people need to realize that, and this causes us to get worse.

The issue is that while this is the ideal that central banks strive for, it never happens, if we had a very long period in which the inflation was that low then you may have a point, but roughly each decade there is an economic crisis and the levels of inflation become higher than that, and it is fair to question us how long will high inflation last this time around? As even a few years of double digit inflation can be more than enough for a lot of people to lose a great deal of their wealth as their money is not invested in a store of value, and that is assuming inflation comes under control relatively soon which is a scenario which does not seem that likely right now.

[Kimonoe]

Inflation is a good thing normally, in a small amount because that means you are growing as a nation and you should be growing. When you get like 2% inflation rate stable for decades without ever going above or below it, that means you are growing and you could get that much increase on your salary as well, plus some promotions time to time (not every year but hopefully every 5 years at worst case) and that means you are going to increase a lot more during those years, all of which equals to you becoming richer and richer.

But, when you have 10%+ inflation and 5% increase on your salary, there isn't really an increase, it’s a drop, and people need to realize that, and this causes us to get worse.

The issue is that while this is the ideal that central banks strive for, it never happens, if we had a very long period in which the inflation was that low then you may have a point, but roughly each decade there is an economic crisis and the levels of inflation become higher than that, and it is fair to question us how long will high inflation last this time around? As even a few years of double digit inflation can be more than enough for a lot of people to lose a great deal of their wealth as their money is not invested in a store of value, and that is assuming inflation comes under control relatively soon which is a scenario which does not seem that likely right now.

During what I'm experiencing right now, where the high inflation rate is not proportional to the salary increase, even the salary does not increase, even then I can still be grateful, because many of our friends have experienced layoffs due to the increasingly difficult company situation. therefore we need to follow technological developments to get other sources of income, currently many online businesses are developing, because if it is to regulate inflation rates and global economic developments, it is not our domain.