New Delhi: The US economy is in a bad shape and the clouds of recession are looming over it. The US has begun printing dollars at a rapid pace. This is changing the global financial system with emerging countries like India being most affected. Akshat Srivastava founder of Wisdom Hatch explained that 60% of the worlds dollars have been printed in the last five years. Dollar rises while rupee sinks Despite this the USD is strengthening while the Indian rupee has fallen by more than 20%. This seems strange at first glance as normally printing such a large amount of currency should cause its value to fall. However this hasnt happened with the USD. Instead the Indian rupee has weakened by more than 20% in the last five years. Dollar printing reduces value of other currencies He also explained the reason behind this phenomenon. He said that the US cleverly spreads inflation throughout the world. This affects the fiat currencies of weak economies like India the most. He further explained When more dollars are printed the value of fiat currencies as an asset class decreases. Weaker currencies lose value faster. Therefore the Indian currency continues to lose value faster than the dollar. This simply means that dollar printing reduces the value of all countries official currencies. However weak currencies like the Indian rupee lose their value even faster against the dollar. New era in global finance Looking to the future Srivastava issued a new warning. He said that a new era in global finance could begin. This era will be the rise of US-backed stablecoins. He suggested that the US could peg its dollar to a blockchain-based stablecoin. This could lead to even faster inflation in countries like India. Currently approximately 70% of US dollars are held within the US. The remaining 30% is held abroad. Srivastava argued that the introduction of stablecoins could rapidly alter this balance. This could exacerbate inflationary cycles in India and other emerging markets. HIGHLIGHTS US dollar has strengthened despite printing 60% of worlds dollars in the last 5 years. Indian rupee has fallen by more than 20%. The US economy is in a bad shape and the clouds of recession are looming over it. The US cleverly spreads inflation throughout the world. The US spreads inflation throughout the world which affects the fiat currencies of weak economies like India the most. When more dollars are printed the value of fiat currencies as an asset class decreases. Weaker currencies lose value faster. Therefore the Indian currency continues to lose value faster than the dollar.