We all know, inflation is causing money to lose its power over time. Each day passes by, purchasing power with a dollar decreases. Its all because, government is printing more money to solve problems.

What is causing inflation?

Inflation is caused because government is printing money to solve all problems that comes along its way. They think that it is best solution, but it is not. Not all problems can not be solved by only money. Because of more money is being printed, there is abondance and it causes money to lose its purchasing power. We can not buy same thing for same price after few days. This all causes inflation. More money government prints, inflation rates go higher.

Government can increase purchasing power of money, by not printing lot of money, compared to now. This will not cause inflation to go high with same rate as compared to now. Governments need to understand that only money will not solve all problems, they have to find other ways. As inflation hikes, price of gold increases, because purchasing power of money is decreasing. That is why, gold price increases in long run. That is same for real estates, silver and everything that could be bought with money.

Reserve Bank of India report

RBI (Reserve Bank of India) is trying to aware Indian citizens as inflation is increasing. They released two reports in last 15 days, saying as inflation has peaked and now it will have downturn. It will go down and could possibly cause market crash. Its like banks are increasing interest rates and this is sign that inflation is heading to its peak. They sold billions of dollars forex reserves and they are trying to lower inflation as much as possible.

What should do now?

Now, inflation is at its peak and everything that goes up with come down. Inflation will come down, too. This will cause stock market crash. When stock market crashes, everything will get its fair valuation. This will generate lot of opportunities. Interest rates will be low and money in market will be available at lower rate.