Are We On the Verge of World Wide Inflation?
July 10, 2008
Reports are coming in on a weekly basis of the imprint inflation is making on countries and economies around the world. We are used to thinking of inflation as a phenomenon of a particular country. But we are seeing food riots in various countries where inflation is ravaging the food supply. Commodities like gold, silver, platinum, copper, and of course oil and gas are devastating dozens of countries at the same time.
We have been globalizing the world’s economy for three decades. It appears that we could be headed into a world-wide inflation hitting most countries at the same time. Time is not on our side. This would be the equivalent of the Bubonic plague errupting in every country at the same time. The longer inflation rages, and the higher it goes, the more difficult it is to quell its ravages.
If the dollar continues its slide, what currency will rise to take its place? The simple answer is there is no substitute for the role the dollar has played since the end of World War II. And world wide inflation will rage until the proper equalibrium is restored, and proper economic conditions again prevail. World wide infaltion would be a dark day in human history.
