Fiat money. An idea that corrupts the system from inside and your pocket too. In the process, I will explain some of the consequences of its use.View post to subscribe to site newsletter.

Today I bring you a cool concept that we take for granted. With this post, I want to explain to you: What price is, How it is formed, What information it offers and Why it is so important to let it move as freely as possible for the benefit of society So here we go. Let me define price as “The point of equilibrium between supply and demand”. Since this might be hard to grasp, let me break it down.View post to subscribe to site newsletter.

We have explained in my last post where inflation comes from and how the governments benefit from it. Now when that inflation is higher than in the last 40 years, you and everyone else have noticed that everything costs more than usual. But how to address it? The answer is raising interest rates. Instead of injecting money into the system, this time, we take it out of it. But What are interest rates?  Let’s imagine taking a loan from the bank of 100 euros and 1% interest for 1 year. At the end of the year, you would have to pay back the bank those 100 euros + 1% of…

After writing my previous post, explaining what inflation is, I would like to add a couple of extra concepts around it, so you can have the full scope of what inflation means from a political standpoint. Let’s summarize what we already know. Inflation means that over time prices rise, and you end up paying more for the same. This happens when the governments, through the central banks, print more currency and inject it into the system. So, in the end, you have more money chasing the same amount of goods, and inevitably, prices increase to compensate. Inflation is a consequence of a political decision. Why does this happen, and Who…

Lately, we have been hearing about rising inflation all around the globe; however, not everyone understands what that is about and how they are affected by it. Until not so long ago, I was clueless about what those figures were until I started researching and acquired a bit of financial education. That said, I will try to explain what it is, how it is produced, and what the consequences are for individuals. As a disclaimer, this is just an approximation to the phenomenon, so for a more academic understanding, consult other sources 🙂  Let’s imagine that the whole world population is 100 people and that the total amount of money…