The supply-side mayhem caused by pandemic and war and that sparked a bout of global inflation for the first time in a generation; Whether transitory or not, what is certain is that it is a dry-run for the persistent and much higher inflation or even stagflation we were always likely to face later in the decade.Continue reading “Transitory or not, the Great Inflation Debate is really missing the point…”
The great inflation debate that begun in earnest following the current U.S administration’s US$1.9tn coronavirus relief package in early Spring 2021 has morphed into something more serious than the jovial sideshow that is was before. Recent monthly U.S consumer price inflation (the percentage increase in prices across a range of representative goods and services) continues to overstep forecasts. In June in the U.S it came in at a whopping 5.4% – the highest jump since the early 80s. If this persists, at stake is the end of cheap money upon which advanced economies have come to rely so heavily upon – that is, if increases in interest rates are deployed to combat the problem and one that has not reared its ugly head in a generation.Continue reading “The source of inflation that nearly no-one is focused on and everyone needs to worry about…”
From a repeat of the Roaring 20s to the Boring 20s to “That ‘70s Show”, describing the decade ahead by diving deep into the past for comparisons has become a bit of a fad.
It’s certainly a fun thought experiment for those who care about these things.
But there is a serious unspoken truth to it all.