This Is Why We Have & Will Continue To have Inflation
Apparently, this video was from a year ago but it showed up in my YT feed today.(I can’t remember if I saw it back then, I don’t think so.)
This is why we have had and continue to have inflation. Not the milkshake nonsense. Since we have been dependent on global goods for decades, as the dollar’s value sinks, because of all the dollars created, we face continued rising prices.
It has very little to do with interest rates, except indirectly. Yes, when the FED cuts rates later this year it will make the dollar less attractive vs other currencies. However, the inflation is already baked in.
By cutting rates to uninvert the curve and mitigate against a collapsing US economy, inflation can slow down(for a short period of time) because people lose their jobs, spend less and only buy essentials.
The main takeaway is the loss of the reserve currency status(de dollarization) is an ongoing process, not a one off event. It will accelerate over time, eventually reaching the point where it seems like it becomes worthless, overnite.