There was a huge surge of money creation during the COVID crisis. The money supply grew by 40% in the U.S., 22% in the U.K. and 20% in the eurozone. The inflationary environment that followed should come as little surprise.
Fast forward a few years. Interest rates have spiked to combat the inflation. Governments continue to run budget deficits as they have for decades, meaning national debts continue to increase. Higher interest rates mean higher costs to service government debt. This means the cost to pay for the mounting national debt is soaring higher. This puts pressure on inflation increasing.
When will nations begin electing fiscally responsible leadership who will put a lid on this?
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