Somehow it was looking as if the increased inflation rate in US would have an adverse effect on the economy and reflecting on the dollar but this has not been so. The Biden administration has been able to strengthen the dollar against most currency paired with and I have noticed the Euro exchange rate with the dollar, now having little or no difference unlike in the past. The economic indices of the US economy is still favourable to dollar.
Inflation is everywhere now due to the war. The U.S. inflation problem was partly due to money printing, but plenty of European countries themselves had borrowed too much from themselves in 2020 when they shut down their economies for COVID restrictions so they were bound for some inflation regardless of the war. The current supply chain issues and product shortages just compound a much more complicated issue.
This also highlights how important energy is. You can completely tank a currency by sending energy prices higher because it makes the country's ability to operate (ie ability to produce economic output) more expensive.
The revulsion I had for people, particularly the green climate change activists, who argued that the only effects of the war on Europe for countries choosing to avoid Russian oil was increased prices at the pump. Well, Europe is finding out that isn't particularly the case.
I think it is primarily about all the money they printed just recently and the money they printed off in 2008 that I don't believe they ever pulled back in.
It is coming, there is no doubt in that, I'd say it is here now but everyone is still drunk on spending and the hangover hasn't quite hit yet.