Everyone has heard the word inflation and everyone knows that experts don’t like it, but do you know why?
What is Inflation?
Inflation is a result of thousands of different factors but essentially it is when the price of items and goods goes up due to an influx of money entering circulation. Inflation is the reduction of spending power for a certain amount of money. Inflation isn’t always negative though, it is necessary for a country with a central banking system to function. Currently, the inflation rate in the United States sits just over 2% per year.
How does Inflation Hurt the Individual?
Simple put, it devalues the worth of your hard earned money. If your weekly paycheck doesn’t increase higher than the rate of inflation then your purchasing power drops significantly. Even though inflation is necessary for he growth of the country, many people are left out on the economic growth. Once to many people are excluded from additional income, a recession occurs.
When inflation increases so does the interest rates for creditors and bank loans. When people see an increase in interest they also have less money to spend on extra goods, which in turn damages the economy even more. If inflation isn’t carefully monitored, it can lead to disaster for households all across America.
Protecting Your Family from Inflation’s Negative Side Effects
The only good way to protect yourself from inflation is to diversify your liquidity. By moving away from the dollar, you can provide options for yourself and your family when an inevitable crash occurs in the United States ecnomy. You can diversify your liquidity by buying real estate, gold or by currency exchange.
US Money Reserve president Philip N. Diehl has one sound piece of advice for anyone who is looking to diversify away from the dollar. “Gold outperforms other asset classes,” Diehl begins. “[Gold] often rises when other assets are crashing. Including gold in your portfolio protects your wealth by offsetting losses in your other assets,” he concludes.
Who is US Money Reserve?
US Money Reserve is made up of a team of experienced account executives, a numismatic expert, coin research professionals and other skilled professionals. US Money Reserves is one of the biggest distributors of US government minted coins. US Money Reserves assists its clients in finding the highest quality gold, silver and platinum coins. The company credits all of its success to its ability to gain the trust of its customers.