Americans think hyperinflation can't happen here. Yet government spending and money creation are out of control, and it will not take much to trigger massive price hikes.
The dollar's petrodollar status has led the Federal Reserve to irresponsibly inflate the currency. The rest of the world has noticed and is looking for alternatives.
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.
Progressives like Robert Reich now claim that there is no inflation, just businesses arbitrarily raising prices so they can increase profits. Such claims do not pass the test of economic logic.
After following hyper-Keynesian policies for more than two decades, the Fed is about to create the conditions that Keynesians claimed were impossible: an inflationary recession.
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.
