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I'm not and economist, but I think its quite obvious that there is a difference between a localized price spike from a particular asset, another is all assets i

I'm not and economist, but I think its quite obvious that there is a difference between a localized price spike from a particular asset, another is all assets increasing in price uniformly. The second is not all assets becoming scarce at the same time, but the devaluation of the currency used to measure the assets' price.

xadhominemx 5y ago
No, what’s happening now is that real demand is higher than supply across many supply chains. If it was just money supply, there wouldn’t be widespread shortages across virtually every supply chain.
- leereeves 5y ago
  It doesn't have to be one or the other. It's quite possible to have inflation along with the shortages that are causing price spikes for particular products, like GPUs and cars.
  - xadhominemx 5y ago
    Inflation starting showing up when the supply shortages arose, well after the major waves deficit-funded stimulus ended.
    - aortega 5y ago
      You can't explain inflation as the widespread shortage of everything at the same time.
      - xadhominemx 5y ago
        Aggregate demand is very high due to 1) global shift of consumer spend from services to goods, 2) global fiscal stimulus, 3) wealth effect from booming asset valuations (though this should be fading). Global supply is lower than it should be due to 1) low levels of capital investment over the past 3-5 years in several key industries (eg, semiconductors, US shale oil) for idiosyncratic reasons, 2) COVID-related reduction of port and air-transit capacity, 3) overall low levels of commercials capital investment in 2020 due to COVID-related financial prudence, 4) impact of the Ukraine invasion on oil and gas supply
- aortega 5y ago
  It might be. But also its the same excuse our government gives for prices increases: it's always 'external factors' and never 'we just printed a huge bunch of pesos'. What I think is happening is that there are virtual price-controls and if you implement price-controls to fight inflation, there is only one outcome since it first was done by the Hammurabi code 4000 years ago in Babylon: shortages.
  - xadhominemx 5y ago
    Ok I’m not sure what the excuses the Argentinian government made in the 80’s, but the current widespread shortages are real and they are causing prices to go up.
  - deleted 5y ago
    [deleted]
  - berns 5y ago
    Exactly, just like Biden accusing the meat oligopolies for price hikes. Hey, lets pour another billion to solve the problem. And corporate greed and all that nonsense. It's a carbon copy. Yet many believe it.

xadhominemx 5y ago

No, what’s happening now is that real demand is higher than supply across many supply chains. If it was just money supply, there wouldn’t be widespread shortages across virtually every supply chain.

leereeves 5y ago
It doesn't have to be one or the other. It's quite possible to have inflation along with the shortages that are causing price spikes for particular products, like GPUs and cars.
- xadhominemx 5y ago
  Inflation starting showing up when the supply shortages arose, well after the major waves deficit-funded stimulus ended.
  - aortega 5y ago
    You can't explain inflation as the widespread shortage of everything at the same time.
    - xadhominemx 5y ago
      Aggregate demand is very high due to 1) global shift of consumer spend from services to goods, 2) global fiscal stimulus, 3) wealth effect from booming asset valuations (though this should be fading). Global supply is lower than it should be due to 1) low levels of capital investment over the past 3-5 years in several key industries (eg, semiconductors, US shale oil) for idiosyncratic reasons, 2) COVID-related reduction of port and air-transit capacity, 3) overall low levels of commercials capital investment in 2020 due to COVID-related financial prudence, 4) impact of the Ukraine invasion on oil and gas supply
aortega 5y ago
It might be. But also its the same excuse our government gives for prices increases: it's always 'external factors' and never 'we just printed a huge bunch of pesos'. What I think is happening is that there are virtual price-controls and if you implement price-controls to fight inflation, there is only one outcome since it first was done by the Hammurabi code 4000 years ago in Babylon: shortages.
- xadhominemx 5y ago
  Ok I’m not sure what the excuses the Argentinian government made in the 80’s, but the current widespread shortages are real and they are causing prices to go up.
- deleted 5y ago
  [deleted]
- berns 5y ago
  Exactly, just like Biden accusing the meat oligopolies for price hikes. Hey, lets pour another billion to solve the problem. And corporate greed and all that nonsense. It's a carbon copy. Yet many believe it.