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Get Ready for the Return of Inflation
- sova 7y agoInterestingly enough, when Kuwait did basic income issuances to the general public (everyone) they could not mitigate a spike in commodity prices every time the fund was dispersed. They continually blamed the finance ministers and heads of economy, but if you inject a ton of cash into the system, the inflation will be felt somewhere. However, thanks to the staggered nature of the delivery of the stimulus of March 2020 it seems that the US will probably weather the storm with minimal increase in inflation, because the reduction in [restaurant and other] food demand has lowered commodity prices. My guess is that they will level out over the next 6-12-18 months. Economics is awesome.
- zapttt 7y agothe US economy cannot be compared to anything because no other country have (or had) the military world power ensuring the dollar as the only tender for internation oil markets. it completely screws even the wilder economy theories, to the point of printing trillions in recent years with zero consequences. no other economy could have dreamed of this. it has almost nothing to do with the way this particular small stimulus was dispersed.