A major hedge fund fears 'hyperinflation' in some developing nations. This is why it could still affect America.
Another consequence of that policy was to send money out of emerging economies and back to the US. A strong dollar and higher interest rates attract capital, Gallagher said, reducing the value of their currencies and making imports more expensive.
"If you need dollars to be able to pay for food, energy, and just about anything else you import, you're in trouble," he said. While Gallagher said hyperinflation wasn't happening yet, the frameworks in place to protect emerging economies from hyperinflation and a debt default were breaking down, leaving countries to fend for themselves.Gallagher said an end to the war in Ukraine, China loosening its aggressive pandemic policies, and a focus on supply-side reform were the easiest way to neuter any threat of hyperinflation in emerging markets. Adding that the US won't be immune from potential consequences.
If several countries defaulted on their debts, global trade could be hampered, exacerbating supply chain issues that are contributing to inflation in the US, he said. Stock markets could also suffer more pain. A humanitarian crisis could also beckon. Hyperinflation, in addition to violence and shortages, displaced six million Venezuelans,"Impacts in the US might not be huge in terms of economics, but the lack of action politically will hurt us globally," Gallagher said.Subscribe to push notifications
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Carvana (CVNA) stock gets a boost as company insider buys shares - Phoenix Business JournalOne of the C-suite executives at the Tempe-based online used-vehicle retailer bought a large chunk of company shares on the open market, typically a sign that management is confident that the share price will increase.
Consulte Mais informação »
TigerIllustrated - Wednesday Insider Notes
Consulte Mais informação »
International Insider: Shifting The Goalposts; Netflix Spain; Steven Spiel-Bear; Indian Film FestivalGood afternoon Insiders, Max Goldbart here. World Cup fever has gripped Deadline Towers and while our U.S. colleagues gobble up their turkey with all the trimmings, we’ve got plenty to round …
Consulte Mais informação »
InsiderInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Consulte Mais informação »
Bold and Blunt: America Must Move Past COVID Fears -- and Anthony FauciIt's high time America stop listening to the likes of Anthony Fauci and his merry batch of bureaucratic minions when it comes to socially distancing, donning face masks, getting shots, getting boosters, getting tested, getting more boosters and more boosters, to infinity and beyond. It's time to move past the fear and resume a normalcy that is completely pre-COVID -- completely without government medical mandates. Florida Surgeon General Dr. Joseph Ladapo is taking a step toward common sense by recommending males of certain ages rethink the kneejerk tendency to get the mRNA shots because, as he says, the dangers from the injections are higher than the dangers from the virus. If only more in America in the medical community especially would take a page from Ladapo's playbook. He also has a story of utter inspiration and godly intervention, called 'Transcend Fear: A Blueprint for Mindful Leadership in Public Health' -- that every American needs to put under the Christmas tree this season.
Consulte Mais informação »
Twitter staff on H-1B visas and parental leave fired, ex-engineer saysSome Twitter staff on H-1B visas and parental leave were fired in Elon Musk's pre-Thanksgiving purge, a former engineer says
Consulte Mais informação »