US Dollars/Carlos Pueblo
It is very interesting to think of US Dollars nowadays. The US Dollar is par with the Euro now. One Dollar is equal to 130 Japanese Yen. At Istanbul Airport, you can purchase items with US Dollars. Chinese National banks are paying higher interests for the certificate of deposit in US Dollars higher than their own RMB Yuan. In the US now, Banks are offering higher interests for money market funds or CD, i.e. a one year CD can get 5.4% interest rate. The US Dollar is very attractive now because the Federal Reserve Bank raises short term interest rate to above 4.5% in order to suppress the inflation.
I must pay attention to my portfolio now because that they are mostly in stocks or stocks mutual fund. Once the interest rate getting into 8% annually, investors like to sell stocks to purchase CD to avoid the stressful stock investment. I was happened in the 1980's.
I don't blame the Fed to manage the interest rate in order to manage the inflation. Most people have bad experience with the inflation which I understand; however, in history both side have argued. Some farmers can get better income of their produce because of the inflation. Last year my savings were suppressed by the inflation like 30% yet my oil stock shares were coming back from a 10 years slum.
I do mention of individual finance plan strategy, always working, frugal, savings by investment, and finally let it grows. During the inflation time, my worry is very limited. I live in a pay off old house and I only need to prepare for the real estate tax. I don't need to know the macro-economic theory. My pension savings can pay my frugal life, foods and shelter, even some traveling.
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