Can single country stand up?

Everyone in this world is blaming USA for food inflation. Basic of inflation is demand-supply gap.

Now let me break down arguments in small parts.

Some decades before, most of the people from emerging economies had lower living standard than today. Governments of these countries opened up economies and foreign investors came rushing in. These investors poured billions of dollars. These incoming dollars raised living standard of people.

People from all such economies should note that their own currency has no standing. It is because dollars are coming in; that they are seeing this wealth effect. If all these dollars are withdrawn, then these economies will be back to square one. Therefore, they should not blame incoming dollars for food inflation.

Neither of these economies are self sustainable. All these people should ask themselves a a question, what will happen if all dollars are withdrawn? Some of the big economies from emerging area import oil worth 50 billion dollars annually. These countries will not be able to pay for oil if they do not export goods or services.

These countries will do well to ignore inflation for short period and instead plan to become self-sufficient.

-Shrihas Pandharkar

© Copyright. No reproduction, please.

DYOR.