2022 start has diminished the chaos in 2020 and 2021 and it is true for both the financial and real world. As the central banks pull the plug easy and cheap money to fight the inflation that they only created. Geopolitical tensions have created panic for the governments throughout the world that they only created.
Last night the USA announced an immediate ban on energy imports from Russia. This is an action that will impact the price of fuel for customers rising to a new high creating larger inflation worries that might result in central banks creating a financial crisis.
As it is said, "For Every Action, There is An Equal Opposite Reaction". This is relevant as Russia prepares the list of goods that will be banned from exports and imports till year-end, targeting the unfriendly countries list they announced last week.
But all these actions have made sure that the rest of the year high level of uncertainty and volatility exists due to real-world changes resulting in the same or more volatility in the financial world.
In addition to this, various events occur or will occur this year like major national elections and China property default to add further panic in buying and selling of anything and everything.
If there was any doubt of 2022 being a stagflation year then surely these events and immediate results till now from them have laid a strong foundation that hopefully will try to ease but most probably lead to a crisis soon.
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