by John Rubino
Dollar Collapse
Here in the US, prices are rising, packages are shrinking and shelves are emptying. This is annoying, but it’s not (yet) the stuff of revolutions.
The same, alas, can’t be said for some other places. One of the Wall Street Journal’s many recent articles on inflation contains this ominous section (emphasis added):
The large central banks are relying on households showing faith in their track records of keeping inflation low, and the expectation that there are enough under-utilized workers available to keep wage rises in check.
Other monetary authorities aren’t sure that they have yet earned that kind of credibility as inflation fighters, and see a higher risk that wage rises will surge. In poorer countries, a larger share of spending usually also goes to essentials such as food and energy that have seen the largest price rises, so policy makers are quicker to tamp down on inflation.