Take the US dollar for example. I was reading an article which said the dollar reached new highs recently, but there was a negative connotation to the piece. Doesn’t something “rising” generally mean it’s “stronger”? I usually think in terms of assets like stocks
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Supply and Demand my friend.
For example, let’s say there 1,000,000 American one dollar bills in the entire US economy (we’ll stick with just ones for ease of explanation). If you have a undeniable AMOUNT of something you can value it.
However, if you start to print more one dollar bills than what was originally in circulation, the worth of the dollar will reduce. This is called inflation, which America is dealing with HEAVILY right now.
Try to use a commodity like silver as a comparison, because the more there is of it the less it is worth and vice versa.
And since many of the worlds transactions use USD in some way or another, printing more and more money will make the dollar weak (meaning you will need to use more one dollar notes because they are worth less).
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