A common theme of these pages is that the U.S. economy is the hub of the world economy, and every other nation is a spoke. We are the center of the financial world.

This chart shows how dependent the rest of the world is on U.S. monetary policy. It shows that when the dollar was devalued under Biden to accommodate the Biden spending spree (see above), nearly every other major country saw prices escalate at the same time. Worldwide inflation peaked at the exact moment in the summer of 2022, when the U.S. inflation rate peaked at 9.1%.

What this picture is really showing is that the entire world is essentially dollarized. When Biden kept trying to deflect blame for higher grocery and gas prices by saying that inflation was high all over the world – he was right. But that is because we exported our reckless fiscal policy and higher prices all over the globe.

One lesson here: The best form of U.S. foreign aid is to keep the dollar stable here at home.