Earlier quoted context omitted.
Usually the local money is even worst. (Hi from Argentina! Not so bad this year so far...)
Is it really "usually?" I think that people often think of the worse cases (Argentina, etc). Looking at https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?most_rec... , the US is at 103, there are 102 countries with worse inflation, and 215 with better. From https://www.macrotrends.net/global-metrics/countries/wld/wor... , the Global Average Inflation rate for 2023 was 5.7%, more than the US but not out of control.…
IIRC in hindsight at the beginning of 2024 the best was to exchange all your saved dollars to pesos, invest them in bonds or the bank, and exchange them for dollars at the end of the year. Probably you can get a 20% yoy increase. But there was a risk or many unexpected problems that would let you with a lot of monopoly money that is worth only a 50% of the initial value... So the safe option was to keep your savings in dollars.
Euros are another safe option. Pounds are very difficult to exchange. The money of nearby countries is sometimes better, but they may have unexpected surprises too.
> I don't know what the effect is called, but suddenly some unrest in some country or inflation in another calls for creating a whole new money system. It seems unreasonable and I'm a bit suspicious of where it comes from.
I agree.