The U.S. Dollar's appreciation value in 2022/Carlos Pueblo

 The U.S. Dollar's appreciation value in 2022/Carlos Pueblo

It's very interesting of the U.S. Dollar's appreciation in 2022 under the current inflation. Amy tells me that all items are marked up nowadays everywhere. I don't do very much shopping and I only pay her monthly for our grocery needs. I always have an idea that the U.S. Dollar is diminishing gradually. People yet are talking that the U.S. Dollar is a strong currency that I am puzzled.

I understand that both the White House and the Federal Reserve agree that the economic strength is strong in the nation, the employment rate is high as well as the economic growth is sound. In order to reduce the inflation, the Fed has raised the interest rate several times. Yet the stock market is indicated otherwise. All other nations are not following up to the U.S. on the interest rate hike; therefore, there is a demand of the U.S. currency in their nations. Most of the foreign currencies are collapsing. 

First, foreign nations' central banks most exhaust their U.S. Dollars reserves to satisfy their citizens needs, then, they must sell their U.S. Treasury holdings next to get more U.S. Dollars in order to meet the demand of U.S. Dollars domestically. Therefore, the U.S. Dollar is strong for no appearance reasons. I feel good yet I am not in any benefit at all. I pay all my payment for my foreign travel at home and I don't purchase anything abroad. It is cheaper to purchase at home because the foreign goods sold cheaper here in the U.S. I know that we must pay more, 25% more due to the import tax added in Chinese goods. I only pay for tennis balls occasionally.

Stock markets are collapsing due to the worry of the inflation theory, after 14 years growth continually, we are due to have a correction or recession. The Fed hike of interest rate is directed to fight to a economic hard landing, we like to have a soft landing. We hope to have this inflation of 2022 to to be eased off some time soon then we can forget and back to the old day. I don't watch the daily fluctuation of the market. I can just practice my frugal behavior and enjoy my appreciated U.S. Dollar at home.