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My ponderings: central bank economists are truly confused why the real world is not following text book examples, and they are still reluctant to admit mistakes
by yobbo 5y ago
My ponderings: central bank economists are truly confused why the real world is not following text book examples, and they are still reluctant to admit mistakes.
(factoids I don't remember sources for:) Chinese export volume is higher now than in 2019, meanwhile there are fewer US jobs. If true, the actual cause of inflation is money printing; supply chain overload is an effect. Everyone knows the effect on asset prices.
The central banks can reverse these trends ("bursting the bubble"), but what will break if they don't? At some point social stability starts to break down, more riots, political movements gain momentum, and so on. Either that, or they have to take down the stock and housing markets.