Understanding the current economical system

Dharma Didacvs • 15 de octubre de 2024

The great confussion over the FED´s politics

In the financial world, there is a common but incorrect belief about how the Federal Reserve handles open market operations and monetary policies. It is often thought that the Federal Reserve "prints" money to buy financial assets, which should, in theory, devalue the dollar and increase inflation. However, this perspective does not reflect reality.


Reserves Not Currency


Contrary to popular belief, the Federal Reserve does not print physical money. What it actually does is create bank reserves. These reserves are not considered money until banks decide to lend them out or purchase financial assets. Since this conversion has occurred only in small amounts compared to the large reserves held by banks, there has not been a significant increase in inflation or a devaluation of the dollar.


Persistence of Low Inflation


Inflation remains low due to slow economic growth and the continuous increase in debt. Despite persistent expectations that inflation is just around the corner, the facts show otherwise: interest rates continue to fall.


Incorrect Expectations


Misconceptions about the Federal Reserve's policies have led to incorrect expectations about inflation and interest rates. Inflation has not increased because the amount of money "printed" by the Federal Reserve has not actually reached the public in a significant way. Only when banks lend that money or buy assets does it become real money. But this has occurred in a very small proportion compared to the large reserves.


Conclusion


The Federal Reserve has not flooded the system with physical money but with bank reserves. These reserves remain in banks, earning interest but not circulating in the public economy significantly. Therefore, there has not been a considerable increase in inflation or a devaluation of the dollar.


Final Reflection


It is crucial to understand these mechanisms to avoid incorrect expectations about the impact of the Federal Reserve's policies. Only then can investors make more accurate calls on inflation, economic growth, and interest rates.

La tokenización de activos y su doble filo

By Dharma Brokers • December 18, 2024
El Auge de la Tokenización de Activos: Un Cambio de Juego para los Inversores

Investment strategies

By Dharma Didacvs • July 19, 2023
How to Increase ROI Speed in Commercial Property Investment

Guide to Successful Real Estate Investments

By Dharma Didacvs • July 19, 2023
Understanding R.O.I. and Profitability

Is Bitcoin a carrot?

By Dharma Didacvs • May 14, 2023
In any scam, the value is within the trust.

Assets tokenization

By websitebuilder • March 28, 2022
The Rise of Asset Tokenization: A Game-Changer for Investors Asset tokenization is a game-changing technology that has the potential to revolutionize the way we invest in assets. Tokenization refers to the process of converting assets, such as real estate, artwork, and even stocks and bonds, into digital tokens that can be traded on a blockchain platform. This allows investors to buy and sell fractions of assets, rather than the entire asset itself. The benefits of asset tokenization are numerous. For one, it provides investors with access to a wider range of assets that were previously unavailable to them. Tokenization enables fractional ownership, which means investors can own a portion of an asset rather than having to buy the entire asset outright. This significantly reduces the barriers to entry for investors and provides them with greater flexibility in their investment strategies. Another major benefit of asset tokenization is increased liquidity. Traditional assets, such as real estate, are illiquid, meaning it can take a long time to find a buyer and complete a sale. With tokenization, assets can be traded on a blockchain platform 24/7, which allows for greater liquidity and faster transactions. Furthermore, asset tokenization has the potential to democratize investing. By breaking assets down into smaller fractions, tokenization enables more people to invest in high-value assets that were previously out of reach. This creates a more inclusive investment landscape and provides opportunities for smaller investors to participate in the same markets as larger investors. There are a few challenges to overcome with asset tokenization. For example, there are regulatory hurdles that need to be addressed to ensure compliance with securities laws. Additionally, the lack of standardization in the tokenization industry can lead to confusion and difficulty in comparing investments across different platforms. Despite these challenges, asset tokenization is gaining momentum and is poised to disrupt the traditional asset management industry. It provides investors with greater access to a wider range of assets, increased liquidity, and the potential for democratization of investing.  At Dharma-Brokers, we are at the forefront of this exciting technology and are constantly exploring new ways to help our clients benefit from asset tokenization. Contact us today to learn more about how you can take advantage of this game-changing investment opportunity.

Wealth protection in times of recession

By websitebuilder • March 28, 2022
Why Physical Gold is a Safe Investment In times of economic uncertainty and recession, protecting your wealth is more important than ever. One way to do this is by investing in physical gold, which has historically been a safe haven during times of market turbulence. Unlike paper assets like stocks and bonds, physical gold is a tangible asset that can be held in your possession. This means that it is not subject to the same risks as paper assets, such as the risk of default or bankruptcy. Additionally, gold has a long history as a store of value and a medium of exchange. It has been used as currency for thousands of years and has maintained its value over time, even during times of economic crisis. This makes it a reliable asset for wealth protection in times of recession. Investing in physical gold can also provide diversification for your investment portfolio. By holding a portion of your assets in gold, you can offset the risks associated with other investments, such as stocks or real estate, that may be impacted by economic downturns. At Dharma-Brokers, we offer a range of services for investing in physical gold, including secure storage and transportation options. We work with trusted partners to ensure that your gold investments are safe and secure, regardless of economic conditions. In times of recession, it is important to take steps to protect your wealth. By investing in physical gold, you can have peace of mind knowing that you have a safe haven asset that can weather economic storms. Contact us today to learn more about how we can help you protect your wealth through gold investment.

How to stop financing terrorism?

By websitebuilder • March 28, 2022
Hay muchísimas buenas razones para comunicarse con quienes visitan su sitio. Cuénteles acerca de las ventas y los nuevos productos o manténgalos al día con consejos e información. Estos son algunos motivos para hacer que bloguear sea parte de su rutina. Bloguear es una forma fácil de interactuar con los que visitan el sitio. Escribir una publicación de blog es fácil una vez que se practica. Las publicaciones no tienen que ser complejas o largas. Solo debe escribir acerca de un tema que conozca bien y debe hacer lo mejor para escribirlo bien.  Muéstreles su personalidad a sus clientes Cuando escribe una publicación de blog, tiene la oportunidad de mostrar su personalidad. Puede ser una gran herramienta para mostrar su personalidad individual. Bloguear es una forma excelente de comunicación Los blogs son una herramienta de comunicación increíble. Tienden a ser más largos que las publicaciones en las redes sociales, lo que le da suficiente espacio para compartir ideas, consejos prácticos, perspectivas y más. Es una gran manera de apoyar e impulsar el SEO A los motores de búsqueda les encantan los sitios que periódicamente publican contenido nuevo, y los blogs son una gran manera de hacerlo. Si utiliza metadatos relevantes en cada entrada, los motores de búsqueda encontrarán su contenido. Dirija tráfico a su sitio Cada vez que agrega una entrada nueva, las personas que se hayan suscripto a la entrada tendrán un motivo para regresar a su sitio. Si la entrada es una buena lectura, lo compartirán con otras personas, ¡lo que le reportará aún más tráfico! Bloguear es gratis Mantener un blog en nuestro sitio es gratis. Puede contratar bloggers si lo desea o asignar tareas de publicación regulares a todos en su empresa. Una forma natural de desarrollar su marca Un blog es una excelente manera de desarrollar la voz individual de su marca. Escriba acerca de los temas relacionados con su industria y sus clientes.
Share by: