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The world is changing – we need to keep up

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Randy Bean is a mentor on global awareness who advocates for financial literacy and money management for young people

I want to make it very clear that this has nothing to do with politics in Bermuda. This is to amplify the awareness for Bermudians on the present climate and state of the global economy, and to shed light on the recent affairs that have taken place and which are reshaping the way countries and currencies trade with one another.

In 2022, we saw inflation levels all around the world hit multiple-decade record highs, and in some cases reach inflation levels never seen before.

The United States, all during Covid-19, printed money at a record rate, mainly owing to the reduction of economic activity during that time, causing prices to jump to the high prices we’re experiencing today as well as the increases in debt.

When prices rise, what that really means is that the purchasing power of our currencies have weakened and it takes more of the currency to complete purchases.

We all know Covid was a very interesting time in the world. It was historic and now we are experiencing a new variable in the equation with the Russia invasion of Ukraine.

Recently, Russia and China have unified and have made a strong link with each other, along with other populous countries with natural resources and huge influence on the global economy.

Countries like Brazil, Russia, India, China and South Africa — the Brics nations — are collectively unifying with other countries such as Saudi Arabia, Pakistan, Iran, United Arab Emirates, Kuwait, Japan and other Middle East and African countries.

These countries have recently agreed to minimise and/or ditch trading with the US dollar and are moving forward trading oil, especially, in alternative currencies.

So what does this mean? This means we’re seeing first-hand, right before our eyes, the demand for the US dollar reduce rapidly and losing its grip as the global reserve currency.

Bermuda as a nation whose currency is pegged 1:1 to the US dollar and has a majority of its debt in US dollars, will expect to feel a weakening adjustment in its currency’s purchasing power and in the rate at which it services its debt.

Meaning, we think prices are high now?

With the US dollar’s global demand reducing and losing its grip as the global reserve currency, we will see prices rise even more than what we are experiencing at present. The cost of doing business will have to rise.

Bermuda, now more than ever, we must unite. We must come together and put all the pettiness aside and stride productively forward. We all know we have many issues here in our country that for many years haven’t received the proper attention they need. We know what those issues are; it’s no secret.

The world is changing, the way it does business is changing, the way it handles everyday affairs is changing. Technology is evolving and the need for human labour is rapidly reducing, requiring fewer and fewer people to be employed.

It’s now time for us to put our foot down on the gas, moving more with the current times and tap more into the modern-day concepts before we get left behind, lose grip on our home Bermuda and can’t afford to live here. We have seen continuous patterns take place over the years which are slowly squeezing us out of here.

I repeat: now is the time for us to adapt more new modern-day concepts to avoid being left behind in a fast-changing world.

• Randy Bean is a youth mentor on global awareness who advocates for financial literacy and money management

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Published April 29, 2023 at 8:00 am (Updated April 28, 2023 at 5:33 pm)

The world is changing – we need to keep up

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