• knfrmity@lemmygrad.ml
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    7 months ago

    The US ruling class also only allows for one way to manage inflation: interest rates. So when the US experiences above-target inflation, they increase their central bank interest rate. What does that do? It makes all USD denominated debt more expensive. Seeing as most global majority countries are stuck in the US debt trap, this makes for bad times. See the 1980s, when inflation was high so interest rates were pushed even higher. The US banally called it the “Volcker Shock,” the global majority called it a crippling debt crisis. The IMF swooped in to take advantage.

    Like you say, fortunately the world is moving away from the dollar.