Governments need to subsidise the cost of food and energy for the poorest members of society, the
head of the International Monetary Fund (IMF) has told the BBC.
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(Blog No. 3xx).This is the Exorbitant privilege mentioned by Valery Giscard d’Estaing
The Total Foreign Exchange Reserve of the World in Q4 of 2021 is USD12,937 billion, 58% of which is in US dollar holding, which amounts to USD7,087 billion (https://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4). The total of US dollars in circulation at that time was around USD 2,214 billion (https://www.federalreserve.gov/releases/h6/current/default.htm). If US government printed and issued an additional 220 billion would the US dollar lose 10% (= 220/2214) of its value or would it lose 2.4% (= 220/(2214+7087))? The answer is somewhere between the two values.
So Russia, China and Israel sold off their US dollars in their Exchange Reserves to reduce that privilege held by USA. Their attempts were greatly assisted by the US embargo of trades by non-friendly governments. In the end, foreign countries now share a smaller burden of US inflation due to the smaller amounts of USD kept in their Foreign Exchange Reserves.
From now on USA can expect foreign governments to gradually off-load their USD and US inflation should become higher and higher and should justly be supported more and more by its own economy.
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Comment by tonytran2015: Russia has money in the bank but the West has frozen its money to make it go into default. Is that a genuine default?
It is due to make $117m in interest payments to investors on two dollar-denominated bonds today.
But Russia’s access to $630bn (£470bn) of foreign currency reserves has now been frozen.
Credit ratings agencies have warned that a debt default is “imminent”.
… even stripping out big rises in the cost of energy and food, US inflation was still running at 6 per cent.
Both are the steepest annual increases in prices that American households have had to face in 40 years.
US borrowers are now facing another potential rise in their cost of
living, as their Federal Reserve plans to increase interest rates next
month for the first time since December 2018…
…British Public “Outraged” By BoE Chief’s Request That They Not Ask For Wage Hikes As Inflation Surges Finally, Britons have somebody else to focus their fury on aside from Prime Minister Boris Johnson. Instead, BoJo and the British public have joined together to lash out at Bank of England Governor Andrew Bailey for telling Britons…
…PayPal, best known recently for aggressively de-platforming and demonetizing all voices which the woke liberal “cancel-culture” brigade disagrees with (this website included), crashed the most on record on Tuesday morning one day after it reported dismal results, slashing guidance and warning that it will no longer reach its long-term goal of 750 million active accounts by 2025, abandoning a goal that contributed to a jump in spending last year on sales campaigns...
…The USA Federal Reserve has been punishing savers with zero interest rates for years. By an exploding money supply in the USA and overseas. Highly stimulative Monetary Policy...
…Psaki responded that President Joe Biden and Secretary of Agriculture Tom Vilsack “have both spoken to what we’ve seen as the greed of meat conglomerates.”…
Inflation for Urban Wage Earners & Clerical Workers (CPI-W) = 7.6%. Fed is still pouring fuel on the raging fire. Most reckless Fed ever.