Spiralling inflation, a war in Europe, and supply chain
disruptions, the like of which have not been seen in decades.
It's little wonder that stock markets have reacted adversely to
the resumption of an upward trend in interest rates and the first
moves to withdraw quantitative easing.
Leading Central banks, accustomed to decades of ultra-low
interest rates and easy money, clearly saw the re-emergence of
inflation as transitory, the result of short-term factors that will
abate in time. And indeed, the War in Ukraine will eventually come
to a resolution, the global energy supply will be remapped, and
food security restored.
But there is something bigger happening. A trend established
three decades ago is reversing, and it will have significant
long-term consequences for cross border trade and the world
economy. A global demographic revolution is underway. The
working-age population as a proportion will fall everywhere, except
in Africa.
