Government transfers to households and businesses exploded to record highs during the pandemic, while central banks helped push interest rates to all-time lows. This enabled excess spending, inflated the price of goods, services, labour, and assets in most countries at once, and ballooned debt through all levels of the global economy.

Then, central banks hiked interest rates at the greatest rate of change in decades. The result is a public and private sector encumbered with crippling payments that tourniquet the ability to consume, save and invest. In response, companies have begun slashing their labour force, further eroding household spending power. Now, raising cash by cuting overhead, supplementing income and selling assets is an international preoccupation. The great unwind is in motion.

Danielle DiMartino Booth offers a good summary update in the segment below.

Join Danielle DiMartino Booth as she delves into the complexities of inflation. Discover the forces that shape our economy, from Federal Reserve strategies to unprecedented government spending. With Danielle’s clear insights, understand how these factors influence your daily life and financial future. Here is a direct video link.