Cumulative inflation of 653% in the 28-year history of the Brazilian Real

Charlie Taylor

The Brazilian Real (BRL) has lost 86% in value in its 28 years of history, understand what that means and how to protect yourself from inflation accumulated by the Central Bank’s poor monetary management.

Accumulated inflation in 28 years of history

This July, Plano Real completes 28 years of history and “you are the one who loses”. The report by G1 shocked many people on July 16, when it finally brought to the masses the frightening reality of the currency that we are obliged, by law and government decree, to accept in our daily lives. However, the problem is not new and several portals following the Austrian School of Economics have been warning their readers for years of the devastating consequences of Keynesian monetary policies (the economic school followed by most politicians and central bank specialists), which advocate the issuance of money at a steady pace. According to Keynesianism, “inflation is good” because it “warms up the economy”. Remembering that inflation, by definition, is the increase in the monetary base – not the increase in prices, which is a consequence of conscious decisions (printing more money).
Know more: Find out how much is the real inflation of the Brazilian currency; and how it affects us And inflation is really good… Just not for us ordinary citizens. Inflation only benefits those positioned at the beginning of the financial “food chain”. The issuers of money (who have infinite “wealth”) and the first to receive the new monetary units (politicians, civil servants, public-private corporations, etc.).
Source: ParadigmEdu
Read too: How Central Banks Increase Inequality This occurs because, simply by applying the law of supply and demand, with the unbridled increase in the money supply (amount of money in circulation – defined by the Central Bank), money loses its value and its purchasing power. in relation to all other products and services on the market. Creating the “price increase” effect that Keynesians call inflation and measure with indices such as the IPCA, for example. Right now, the Brazilian Real has lost 86% since its creation, with an accumulated inflation of 653%, as measured by the increase in prices, but the real inflation could be much higher than that if we consider purely the base increase. monetary policy through the Bacen’s purposeful inflation targets. Because of the financial administrations in these 28 years of history, what was bought with R$13.09 in 1994 costs R$100 today. And to buy something from R$100 in 94, the consumer would need R$748.04. The bad news is, as long as we don’t change the way we look at money and economics, that number will continue to grow.

the end of the real

Here at Cointimes we have been warning our readers about these issues for a long time and helping with possible solutions. At Cointimes Club, for example, Isac Honorato taught a very complete class on “The End of the Real”, addressing this very relevant topic and explaining how each one could protect themselves and their heritage. On November 29, 2021, Neto Guaraci published an article explaining exactly what Globo and the traditional media discovered just last week.
Know more: Currency drops 85% since creation and you are investing in it For those of you who follow us daily, you already know that the solution is to use a decentralized currency, whose supply cannot be arbitrarily increased to the detriment of many (us) to favor the few ( the country’s political elite). If you want to keep following us closely, join us in building the largest crypto community in Brazil on our Discord server and join the chat for a better economy for all individuals! NovaDAX is full of news! One of the largest cryptocurrency exchanges in Brazil has now ZERO withdrawal fees in real! NovaDAX also counts zero fees for Bitcoin transactions and more than 110 listed currencies, with cash withdrawal available and high liquidity. Cryptocurrencies with the best rates on the market! Simply activate the free Novawards program and enjoy reduced rates of up to 75%. Discover the NovaDAX Card and order yours now.

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