QM025 - Adopting A Multi-Currency Mindset
Here in the US, we think that we can use dollars for everything. Since the USD is the strongest currency in the world, can’t we use it for both spending and saving?
Most of the world doesn’t work this way. When you have a currency in a developing country that doesn’t hold value well, you can’t store wealth over time in that currency. People in these countries have a multi-currency mindset. They spend in the local currency but try to save in US dollars, since dollars hold value better.
Us though? We only think in dollars. Yet we intuitively know that we can’t just save money by keeping it in the bank. We need to ‘make our money’ grow, right? So we invest it.
Well - investing and saving are not the same thing. And this turns out to have consequences.
Take a listen to learn about how American saving has become financialized, and why people in the US need to start adopting a multi-currency mindset.
If you like the newsletter - please subscribe. You can also follow me on Twitter @seancover. If you have any questions, feel free to email me at firstname.lastname@example.org.
Thanks for listening!