"The Risk comes from not knowing what you're doing" 

~ Warren Buffet

The current US government's problem is that they don't have Dr.Ben Bernanke to help them deal with the inflation mess they've created over the years by printing too much money and then using a low-interest policy to stimulate growth, particularly during the Covid - 19 period. That Keneysian act was exactly what the doctor ordered. However, the solution that the US Fed has chosen to come out of this is appalling — adding muscle to the USD to minimise Ruble-INR trade is a stupid act by the Joe Biden administration.

Keeping the USD at elevated levels for an extended period of time can cause global trade to take a tectonic shift into an entirely different groove.

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Fortunately, cheap Asian imports from countries like China, India, Korea, Vietnam, Bangladesh, and Thailand have historically fueled the US economy and kept it cool. The Joe Biden administration should consider using this weapon of structural change rather than opting for the obvious solution of raising interest rates quickly. ——————————————————-

After leaving this, another risky action was to arm Ukraine (NATO's invisible hand) to counter Russian strength. After that, a number of ineffective sanctions were imposed on Russia. This careless action has indirectly caused panic in Europe, increased shortages, and sparked needless demand pull inflation. It is time for the US Fed to adjust its economic policies to reflect the current constellation of spiralling issues.

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An intriguing development occurred on the other side of the world, where Indian FM Nirmala Sitaraman stated recently: "In a world of uncertainties, India is one of the very few standout performers" — a day after the IMF referred to the nation as a bright spot in a world economy that is about to enter a recession.

In the midst of the ongoing annual conference of the World Bank and the IMF, Sitharaman was speaking to the International Monetary Finance Committee.

She said that the National Statistical Organization (NSO) of India has now estimated India's GDP growth for the first quarter of the current fiscal year 2022–23 at 13.50% on an annual basis, the highest among developed nations.

This was accomplished, according to Sitharaman, because of the fact that India began the process of monetary normalisation relatively early: excess liquidity is being absorbed through the Standing Deposit Facility established in April 2022 and interest rate increases beginning in May of this year.

She pointed out that the central government is on a road of consolidation and has budgeted to reduce the GFD-GDP ratio to 6.4% from 6.7% in 2021–2022 and 9.2% in 2020–2021. Additionally, she continued, government spending is now more heavily weighted toward capital expenditure rather than on revenue generation --  establishing the groundwork for medium-term growth. India is therefore in a better economic position than the EU and the US. India had used its shock absorbers in a timely manner and had done its homework admirably.

The US, on the other hand, is yelling "fire!" while ironically aiming its fire hydrant somewhere else (in a different direction).

It is time for the US to reflect on its existing monetary policies and take the necessary steps to ensure that growth and inflation are balanced in a healthy way -- if done effectively, this will provide the world's gasping equity markets with much-needed fresh air.