There is a global economic crisis at play here. More than a decade of cheap money is coming to an end, and global economies are now playing catch-up. The punch bowl is now being taken away, and chaos is ensuing.
The Great Britain Pound (GBP) hit its lowest point against the US$ only last week following a disastrous mini budget. Only a few weeks back, the EUR also hit its lowest point against the US$ as it comes to terms with an era in which there is no cheap Russian energy available. The US FED, which is responsible for maintaining oversight of monetary policy, has adopted a hawkish stance and has started increasing interest rates.
As interest rates in US$ start to increase, there has been a flight to quality of capital, whether it be from more stable currencies like GBP and EUR, or from other emerging market currencies. The US$ has gained more than 16 per cent in value against major currencies during the last nine months, and…
