As the US government debases the dollar, other nations take notice and possibilities increase that another currency based on sound principles might emerge.
Inflation at an annual rate of 5 percent is not a positive, and it is certainly not falling prices. Inflation is accumulative, and this means we are becoming poorer faster.
Unfortunately, when governments all over the world decided to “spend now and deal with the consequences later” in 2020, they also sowed the seeds of a 2008-style problem.
The global economy is entering a recession because recent unprecedented government spending has zombified hugely indebted economies and has crowded out the private sector.
Beijing must be very happy. Thanks to the "price cap," the Asian giant will secure a long-term supply at al attractive price from Russia and sell refined products globally at higher margins.
Pakistan, like so many other countries, is seeing inflation close to spiraling out of control. As for finding causes, monetary authorities should look in the mirror.
Even with near-record inflation, the US dollar still has gained strength relative to other currencies. This does not mean that the Fed has been acting responsibly.
