Inflation Sucks Big Time

These days, almost everything is getting more expensive.  It kind of sucks for people that saves money because it’s like a hidden tax that steadily erodes your purchase power.  So there’s definite an incentive to spend it, but wisely.  Heck, first take care of the basic necessities, then invest rest in stocks or gold, the former if you know how to read the financial reports, the latter if you don’t. 

The basic cause is because the Fed is keeping the interest rate low to stimulate economy.  The low borrowing cost creates a lot of money suddenly that dilutes the existing purchasing power.  Here’s a link that explains how Money as Debt works.