WHAT ARE WE FACING?

In the last few weeks, there have been sounds of a certain degree of skepticism on the part of some markets in different parts of the world.

Here there are several considerations that will help us understand what is happening in the markets and stock markets in different parts of the world, first of all, we come from a pandemic that slowed global production and thus created a shortage of some goods and services that have not yet been able to match the beginning of 2020, this had caused a shortage of materials and finished goods that the world demands, However, the acceleration in the manufacture of some goods and materials required has also caused a deficit in the maritime transport of cargo that has large companies with delays and difficulties to meet commitments, and to this is now added the conflict between Russia and Ukraine that comes at a bad time when we already had difficulties with certain raw materials, not to mention that these two nations are world leaders in the production of food and fertilizers.

To this panorama already described, we must now add that according to some specialists in international finance, they foresee that there is a great risk of a reception in the U.S. markets, a situation that could be just around the corner.

The FED in the U.S. has already taken measures such as increasing the interest rate. The FED in the USA has already taken measures such as increasing interest rates and the same policy is being implemented by other central banks in many parts of the world in order to contain inflation which in many places is already reaching its historical maximums, obviously, this is causing the increase in the price of money and cuts in the expenses of both countries and their citizens, and it is here where the skill and wisdom of the experts in the global economy must come to the fore, in many nations zero tariff policies have been implemented in the import of food and fertilizers in order to alleviate this situation.

Not to mention that the demand for many goods and services will be affected by inflation and shortages.

As for the third world countries or also called emerging countries will be the most affected since many will not have how to inject money or tax exemptions or eliminate tariffs on many goods and services imported from other nations, and in a particular food that for now is the most sensitive to this situation that the world is experiencing, In this line of implementing measures to cushion the crisis are the policies of increasing interest rates that lead on the one hand to stop the upward wave of some finished goods but on the other hand makes access to credit more expensive and therefore slows down in some way the development of nations, so it is necessary to also implement relief policies for both growers and for those who develop industrialized products.

In this way, the world is facing something that is only in mid-development but that is at the same time a challenge to test the mechanisms and tools that each Central Bank has, and it is here where a well-developed and thought-out policy can show that it is intelligent and very wise to face the challenges of the post-pandemic.

To conclude, we only look to the intelligence and the good use of the tools of the entities in charge of the finances of each country to create the mechanisms that will allow stopping this shortage and inflation that in many countries has already broken historical maximums.