There is a common misconception that the United States has the highest rate of inflation in the world. I see it questioned in numerous emails The United States does have a major problem when it comes to inflation, but its currency has not depreciated to the point where it is weak. Let us compare data on inflation from other nations.
According to data compiled by Trading Economics, the following countries are suffering the most from runaway inflation as of June 2022:
- Lebanon 210%
- Zimbabwe 192%
- Venezuela 167% (last compiled May 2022)
- Sudan 149%
- Syria 139% (last compiled in August 2021)
- Turkey 62%
- Argentina 64%
- Suriname 55.6% (last compiled May 2022)
- Sri Lanka 54.6%
- Iran 52.5%
These depreciated currencies are all but useless at the moment. As we have seen throughout history, the prospect of revolution rises when the people are unable to afford basic needs. Numerous countries on this list are already in the middle of ongoing civil wars and political turmoil. Barter becomes essential as trading goods and services are often the only available option.
Here is how the G20 nations rank as of June 2022:
- Turkey 62%
- Argentina 64%
- Russia 9%
- Brazil 89%
- Spain 2%
- United Kingdom 9.4%
- United States 9.1%
- Euro Area 8.6%
- Netherlands 8.6 %
- Canada 8.1%
- Italy 8%
- Mexico 99%
- Germany 7.6%
- South Africa 7.4%
- India 7.01%
- Singapore 6.7%
- South Korea 6%
- France 8%
- Australia 5.1% (compiled in March 2022)
- Indonesia 4.35%
- Switzerland 3.4%
- China 2.5%
- Japan 2.4%
- Saudi Arabia 2.3%
Turkey tried but failed to gain access into the EU and swap its lira for the euro. They would have been in insurmountable debt regardless, but their initial attempt failed. Is it any wonder that Turkey is trying its best to keep diplomatic relations with both the West and Russia amid the proxy war? They cannot afford to lose trading partners and have failed to impose tough sanctions on Russia. Turkey enjoys its NATO status but attempted to block Finland and Sweden from joining. They cited their reasoning as those countries supported Anti-Turkish terrorist groups, but part of the reason was not to anger Russia.
All of the other G20 nations are experiencing high inflation, none at the common 2% target, but some are faring much better than others as they are not involved in the ongoing proxy war and have maintained strong trade. The US sitting at 9.1% is alarming. As I have warned, other nations will fold before the US as the dollar remains unchallenged.
