A country's Gross Domestic Product (GDP) is a general gauge of its economic health. Let's take a look at the $100 trillion global economy, all in one chart.
Sri Lanka's current economic crisis has emerged as a result of years of poor economic management. The timeline below considers the factors behind it.
It would seem that India along with other Asian countries like Vietnam has benefited from manufacturers moving out of China. China's productive capacity is starting to slip away when compared to India.
The average card-carrying Austrian would say that the Federal Reserve is creating money by the bale, with evidence being Consumer Price Index prints of 8.6 percent per the Bureau of Labor Statistics or over 15 percent per John Williams’s shadowstats.com computation based on the way the government calculated CPI back in 1980. Surely, at best, the US dollar is only the cleanest dirty shirt in the currency laundry basket.
We are now well past the corona crisis of 2020, and most of the restrictions around the world have been repealed or loosened. However, the long-term consequences of arbitrary and destructive corona policies are still with us—in fact, we are now in the middle of the inevitable economic crisis.
Earlier, GreatGameIndia reported how a Black Swan event could trigger $100 billion capital outflows from India. Now, we see that India's biggest ever IPO of LIC has incurred a loss of over $18 billion.
With increased access to money due to monetary inflation, companies and consumers may raise demand and drive up inflation across the board. As such a gloomy future loom over us, let's take a look at the 3 different types of inflation.
First it was baby formula, now there's a tampon shortage. Tampon prices are up 10% due to the rising price of oil affecting the cost of plastic and higher cotton prices due to mask manufacturing and the war in Ukraine. A whole lot of fertilizer comes out of Ukraine and Russia. So does neon, which is used to make semiconductor chips. The chip shortage is shutting down car plants.
American’s capacity for denial is truly a thing to behold. For at least 27 months, it should have been obvious that we were headed for a grave crisis. Not only that: the crisis was already here in March 2020.
The most dangerous words in monetary policy and economics are “this time is different.” The big mistake of politicians in Argentina is to believe that inflation is multicausal and that everything is solved with increasing doses of interventionism.
