The problems started with COVID. It shut down the entire supply chain. When we started to get things up and running again, someone decided it would be a good idea to force 100 million workers to get a shot they may not have wanted or get fired. Many were fired, many retired early. This was the Great Resignation. Those that remained in the workforce were forced to wear masks all the time and some chose to be lazy at work or quiet quit. All this has dropped productivity to record low levels. Less production, less goods produced. To "help", the government was paying people to do nothing for so long, people decided to get a government check rather than work. All that government spending, including stimulus payments has caused too many dollars to chase after too few goods. The result is inflation. We have three major problems now. #1: The government still thinks they can spend money to solve the problem. Any government spending adds to inflation. #2:The FED has to raise interest rates to lower inflation. Any further government spending done means they have to raise rates even higher. We're in for some rough times ahead until they get inflation under control. Hyperinflation is what brings down nations. #3: The U.S. dollar is losing it's status as the world's reserve currency. This was challenged recently when China was allowed to use their currency to buy oil from Saudi Arabia (OPEC). If the dollar isn't the reserve currency, the FED will begin to sell off their bonds flooding the market with dollars and devaluing the currency. If nobody is willing to buy our debt, the FED can't afford to either. The dollar's status as the reserve currency is based on the fact that everyone has to have it to trade in oil in OPEC (no longer the case), the value is stable (no longer the case due to inflation), and the strength of our military (not looking good after Afghanistan).
