Purchasing power is simultaneously eroded by two forces: geopolitical disruptions like oil supply blockages that raise costs of essential goods, and fiscal policies like excessive government spending and money printing that devalue currency; these factors combine to create a situation where economic recovery is delayed for years, as neither force resolves quickly.
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Your Dollar Won’t Recover #inflation #economy #purchasingpower #oilcrisisAñadido:
Your dollar is losing value, and two things are making sure it never recovers. The first reason is a narrow waterway, about 21 miles wide. One single choke point that controls nearly [music] 20% of the entire world's oil.
And right now, a war has it blocked. And oil doesn't just affect your gas tank, it affects almost everything you buy.
So, when oil gets more expensive, your entire cost of living gets more expensive, too.
And here's what nobody's telling you.
Economists say prices won't recover until 2026 at the earliest. Some of the damages will take years. The war ending doesn't mean that your wallet will recover. And here's the second reason, and this one has nothing to do with war.
Imagine your household spends more than it earns every single year, and the credit cards never get paid off. They just grow. That's America, right now.
125% debt to GDP. That's the highest ever, and the only way out is to print more money, which will make your money worth less. Rising oil from one side, government printing more money from the other. Your purchasing power is getting hit from both directions, and neither one is close to being over.
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