Topshot – (Combo) This combination of images created on October 22 2020 shows US President Donald … more
Inflation does not increase prices. Deflation does not decrease prices.
The more production extends to a growing number of hands and machines, the lower the price. And vice versa. Apple’s iPhone is the result of production on six different continents around the world. Boeing jets are the result of millions of different parts around the world. Global cooperation makes so increasingly accessible, not “monetary policy”.
Which is a reminder once again that relentless reduced prices are proof of increasingly sophisticated and global production, not deflation. On the contrary, the global cooperation of global cooperation during the crown lock had reasonably resulted in higher prices that burden less sophisticated and less worldwide production, which continued to accept Sofia, had nothing to do with inflation.
Inflation is a shrinking of the measurement unit, in our case, of the dollar. But it is not necessarily a decrease in the value of the dollar against foreign coins anymore than deflation is necessarily a rise. Since the dollar floats (as well as other foreign coins), dollar movements upwards can sometimes disguise inflation, while a reduced dollar can disguise deflation.
It brings us to gold. The reason why the money has long existed as the definition of money is precisely the fact that gold is not moving, but the coins at which prices are. Gold simply is. He tells the truth. When gold goes up against the dollar, this is a sign of a shrinking dollar. When gold falls, the dollar increases.
Since presidents get the dollar they want, Gold’s moves can be used to evaluate who was better in dollar/inflation policy, Donald Trump or Joe Biden. About how it will be for this writing, markets are a look ahead. In this case, the price of the dollar gold will be examined as soon as they were elected, not when they entered the White House.
In Trump’s case, Gold closed at $ 1,273/ounces a day after his election in 2016. On the day of November 2020 elections, the price of gold had increased to $ 1,914. Against the objective constant gold, the dollar lost 50 % of its value during Trump’s first term.
The day after the 2020 presidential election won by Biden, Gold closed at 1,904. Biden left the match for a second term on July 21, 2024. Since Friday, July 19, Gold was negotiating at $ 2,398. The dollar lost 25 percent against gold during Biden’s lonely term.
The unknown is what the markets knew after Biden’s exit. They started pricing in a Trump victory immediately and began to invoice in a Trump victory before Biden’s exit. There is no way to know for sure, but it is noteworthy that gold increased by 13 % compared to the dollar between the time Biden left the race and the election of Trump.
On November 6, 2023, the day Trump’s election became official, gold closed, 2,721. From this script, it deals with 3,199/ounce, a 17 % reduction in the dollar measured against gold.
There is no settlement statement here. Gold once again is. He only mentions and marks the weakness of the dollar under Trump. It means Trump was the most inflationary president.
There is no doubt that this will not appear in CPI and other prices of prices, but prices go up and down for all reasons, most have nothing to do with inflation or deflation. Thus, while Biden will enter the first plan of history as a president that caused inflation, the farthest story can tell a different story, including that it was Trump who presented the biggest dollar devaluation and was a trump that panicked for Koronai. And Trump’s panic brought higher prices during Biden’s presidency that had nothing to do with inflation.
