Fastest News Updates around the World

The West’s Tough Choice: Deflation or Hyperinflation?

44

- Advertisement -

Expert Alexander Nazarov warned of a deep crisis in Western economies, stating that “the West is doomed and can only die from deflation or hyperinflation.”

Yesterday, official data showed that the U.S. annual inflation rate slowed to 6% in February, the lowest level since September 2021.

However, the base rate, which does not include food and energy prices, rose to 0.5% from 0.4%, compared with expectations of 0.4%.

And the growth of the core inflation index increases pressure on the European Central Bank to continue raising interest rates, which economist Alexander Nazarov expects.

The expert warns that raising rates will eventually lead to a sharp drop in stock markets and an economic downturn. He pointed out that prices began to rise from the beginning of 2022 as a result of the irresponsible policies pursued by Western central banks in recent years, when they pumped tens of unsubsidized trillions into the Western economy, which spurred inflation.

He also pointed out that an approach to raise the interest rate to counter inflation would lead to an economic downturn, which would be accompanied by “a decline in production and the destruction of banks and companies.”

The expert predicted the collapse of the Western economy and said: “I have said many times that the West is doomed, it will collapse anyway, and it only remains to choose death from a deflationary collapse or from hyperinflation. So now the Fed will try to keep us on the path of deflation for a few more months but after there are too many bankruptcies, paper money printing will resume and we will be back on the path of hyperinflation.

Source: RT

Leave a Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More