IMF echoes #Putindidthis..Inflation to persist
The World Bank has joined the chorus of deflection and blaming Putin for everything. The failing institution slashed its estimate for global growth in 2022 to 3.2% from a January prediction of 4.1% (which compares with 5.7% expansion in 2021).
With inflation continuing to soar and The Fed sleep walking to rate-hikes and QT possibly leading to stagflation, global anxiety is accelerating.
Of course, not to get left out of the deflection party, the IMF has revised its projection for global growth downwards to 3.6 percent in both 2022 and 2023 - a steep falloff from 6.1% last year and from the 4.4% growth it had expected for 2022 back in January.
And who is surprised to learn that low income and emerging countries will suffer the most. Ripple effect guys. If you feel like going down the rabbit hole, check out Dependency Theory.
More widening of the inequality between the “have nots” and the “have yachts.” Between advanced economies and emerging/low income economies. Is anyone surprised to learn that south to north migration is on the rise without any signs of abating?
According to the IMF, inflation will remain elevated for much longer.
Quoting the IMF, “the risk is rising that inflation expectations drift away from central bank inflation targets, prompting a more aggressive tightening response from policymakers. Furthermore, increases in food and fuel prices may also significantly increase the prospect of social unrest in poorer countries.”
Not good news guys.
Sorry to be Debbie Downer here, but we have to face reality especially now that world leaders are not aiming for a de-escalation to the Ukraine/NATO quagmire.
Even as the IMF has warned the war also increases “the risk of a more permanent fragmentation of the world economy into geopolitical blocks with distinct technology standards, cross-border payment systems, and reserve currencies.”
Aren’t we already on this path? Protect your wealth before inflation robs you of your fiat savings.
See you tomorrow!
- Ope