I mentioned yesterday in my post that the talk of introducing a new larger note in South Africa is on the horizon. What that means is actually bad news as the cost of living is and will keep increasing as that is what just happens. South Africa is not on it's own though as we are all up against it and if this carries on how will someone in South Africa ever afford to travel and go on holiday to the States?
In 2012 I spent a month in America and the exchange rate was around 10/1 which even then was bad enough. Still many things were cheaper than what we paid for back home which is also rather telling how bad things are locally. Imagine going clothes shopping in the States because things are cheaper which is mind blowing, but true and had no idea before hand.
This was 10 years ago so I hate to know what things cost now as we have all been under the pump with inflation lately. The dollar was always the currency to have as back up and still is thought that way by many.
What is scary is to see a currency that is still seen as valued lose it's buying power being constantly eroded away over time. Where does that leave everyone else who use other currencies that have less value?
The reality is we have to find other safe havens as otherwise we will end up having nothing of value. When I was growing up we always said we would like to be a millionaire but those times and numbers have changed drastically. 1 million is nothing today and in South Africa may buy you a 2 bedroom flat where at one time it would buy you a lavish property.
The values have risen so drastically it is hard to wrap your head around things as what does still hold it's value? Property in South Africa is a no as the currency is still losing against the dollar so you are better off out of that investment. I know quite a few people renting these days and they have invested in various things like Gold and Silver. Bricks and mortar still seems like a risk and the returns are not like they used to be.
Crypto is the stand out beacon even for it's known volatility as the one thing we do know the value will continue to rise. The dollar and every other currency will continue to lose value so they are literally two opposites.