Inflation is one of the worst scourges of the modern world. With our interconnected and highly complex economy and its huge amount of ever-increasing variables, it gets more and more complex.

Under the current setup, the signals for a devaluation to take place in the largest economies seem to be consolidating.

Our hyperinflation process was so brutal that it wiped off any mortgage debt I had, and my money that was in the local equivalent of the 401(k) after 17 years of hard work.

Now, in my mature age with two elders needing medicines and a child, jobless (yes, the industry where I used to work is not there anymore), I am finding everything increasingly hard.

I don´t want that happening to anyone. We don´t deserve it, plain and simple.

The bias to mask this inflationary behavior can be too much. That´s why we have to learn to read the signals and have a plan.

Accurately predicting the effects of a dollar devaluation in 2025 is a complex task, and impossible to do in such a limited space.

Nevertheless, we can analyze the potential impacts of such an event based on historical experiences, economic models, and current market trends. Most importantly, we can take some measures to protect against it.

What is a devaluation and why does it occur?

A devaluation is an intentional decrease in the value of a currency relative to others. Governments often resort to this measure to stimulate exports, reduce imports, and combat inflation. The causes of a devaluation can be diverse: imbalances in the balance of payments, expansive monetary policies, economic crises, or speculation in financial markets.