The Zionist backed economic warfare on Russia, China and Iran is hitting the poorest countries in the world the hardest, with the worst consumer price surge in decades. This is the highest spike in prices since December 1981.
The US Bureau of Labor Statistics’ Consumer Price Index (CPI) report for March, which is a key inflation metric, showed that year-on-year inflation rose by 8.5%, meaning that, on average, people are paying 8.5% more for the same things than last year.
What’s more, the most impacted commodities are necessities, e.g., things like food, shelter and fuel, while less essential luxury things saw less of a rise.
This inevitably means that the poor are most impacted by rising inflation since they put most of their budget toward necessities, according to an analysis by the prestigious University of Pennsylvania Wharton School.
Poorer countries are also extraordinarily impacted by inflation for these same reasons, so much so that it’s causing widespread political instability. The more important point is that the supply side of the economy – not the demand – has been seriously impacted.
The past week alone has seen inflation-induced riots in Peru and the political ouster of former Pakistani Prime Minister Imran Khan, which was influenced by inflation even if the USA and the IMF might have had a hand in that situation.
First, is the pandemic. Covid-19 waves have at various points knocked out entire sectors of the economy since so many people were vaccinated all at once. The USA also updated its quarantine guidelines which have knocked out entire hospital systems.
Second, climate change is a major and probably overlooked factor. Everything we produce and consume comes from nature. Our entire global system of consumption is coming to an end.
There is not one industry on the planet that will not be directly affected by climate change – and many sectors, like semiconductors, lumber, basic food items and much more, were hit by climate events that hurt production last year.
Finally, the major elephant in the room is global conflict and especially the new battleground of economic warfare. The Russian incursion into Ukraine has hampered global food supplies, causing prices to rise since both countries are indispensable agricultural exporters.
But sanctions against Russia, a major fossil fuel exporter and the largest exporter of fertilizer in the world, have been huge inflationary pressures yet to be fully understood but are already impacting the supply-side.
The White House has tried to get on top of the narrative by dubbing inflation Putin’s price hike. In reality, it was the USA and its allies that chose to engage in economic warfare against Russia by imposing unilateral sanctions.
Nothing dictated that these policies go into effect and the Russian ruble’s rebound in recent days proves that these policies don’t even work. However, even before that inflation was developing into the red zone.
Furthermore, price hikes were already in effect on things like fertilizers before the inflation. The USA had already imposed extra taxes on US imports of phosphate fertilizers from places like Russia and Morocco, which were major inflationary pressures.
As well, as the Wall Street Journal noted in January, another point of inflationary pressure was the US sanctions on Belarus – which controls about 20% of the global potash market, a major ingredient for fertilizer. But also oil sanctions on Iran boosted inflation.
With the hot war in Ukraine and the US attempt to isolate Russia from global markets in full effect, these pressures will get worse and it will impact the poorest people in America and around the world.
As noted before, this is already causing economic hardship and political turmoil since the global industrial crash in 2009. This may be an example of unintended consequences.
We can take whatever moral stance we like on Ukraine, but it does not change the fact that attempts to isolate Russia economically are already harming the poorest to the point of triggering street riots.
However, the wealthy are not only insulated from inflation but the ultra-wealthy are profiting from it. Global company owners like Bill Gates and Amazon parasite Bezos gained billions of dollars in extra wealth while the poor choke. Perhaps not so unintended.
RT. com / Flash Point Economy News 2022.