General Discussion
In reply to the discussion: If You Have The Ability to Create Your Own Currency, How Can You Ever Be Broke? [View all]bemildred
(90,061 posts)There is nothing to appreciate. It's true there are currency markets, but they are a.) manipulated by governments in pursuit of economic policy, and b.) not causally connected to anything in particular, sort of like sheep being herded around in a field.
You are talking about price changes for particular products etc. You can see this now, some things go up, others go down, depending on demand (you know "markets" . Sometimes the herd spooks and everything tanks, sometimes the herd is mainlining crank and we have bubbles. We really like bubbles. Nobody ever seems to think bubbles are "hyperinflation" when they are hot, but that's what they are, but it's particular to the market, housing went through the roof, other things were still cheap. And sometimes, if the government is really dumb or desperate (think Zimbabwe) they go way overboard and nobody wants your currency anymore. But there is nothing inevitable about that, it's not a mechanical process by any means.
Pricing may be determined by supply and demand, but usually everybody involved is doing their level best to tilt the table in their direction, often with great success.
Bottom line, there is no substitute for paying attention to the current situation and good judgement, but there also is no cliff. With the crappy and misguided money management we have been subjected to, we "fall off a cliff" about once or twice a decade now, and they have always patched it up. In fact the big money boys like the occasional crash, it's a "buying opportunity".