Why is the market falling?

The market is going down, but I would say this is a good time to enter. If you read my old post you will understand why. But let me tell you about the reasons for the current market decline. I think few people will tell you this.

The whole world relies on one currency – the US dollar. Even all countries hold US dollars as foreign exchange reserves. This gives America absolute power to control the entire world economy.

But unlike other countries, America cannot print as many US dollars as it wants. Although printing money is beneficial to America. For example, America bought $1 trillion worth of gold from other countries. Now if they start printing money, the value of the US dollar will fall. Let's say there is 20 percent inflation, and now America makes a 20 percent profit by selling gold.

The problem is that they can't do it. They can't print money without a good reason. They do this when there is a crisis, such as a war or a pandemic. If no significant event occurs, then they keep inflation at 2-3%. This is one of the main reasons why we see sudden price increases in all markets during certain events.

Now you might ask: If people in America know that inflation is 2-3% every year, why would they even keep their money in a fixed currency (called a bank deposit)?

This is why the American government had previously announced the issue of bonds on which they provided the same amount of interest corresponding to normal inflation. All banks basically kept their money in bonds and provided Americans with 1.5-2% per annum. But as America meddles in so many ways and faces economic crises and has a national debt of trillions of dollars, they have changed their approach and are now aggressively printing money.

American residents who keep their money in banks are not happy with this. So now America decides to raise the bank interest rate to 9%. (So, if 10% inflation occurs, the person saving money in the bank will only lose 1%).

This now neutralizes the effect of inflation. This is why we noticed a big decline in the cryptocurrency and commodity markets after this news.