News Snapshot:
Labour shortages, excessive stimulus and large amounts of quantitative easing are coming together to create a global inflation cycle. The US dollar-renminbi peg creates artificial currency stability, which prevents the spiral of currency devaluation and rising inflation that emerged the 1970s and allows the US Federal Reserve and other major central banks to procrastinate in their responses. This will further entrench the inflation cycle and pile up the risks down the road. If the dollar-renminbi peg breaks – which China could bring about deliberately as a strategic move – the consequences could be catastrophic for the United States. If and...
