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Supplier's prices have shot through the roof in the last quarter and people's buying power has decreased through inflation which seems like a recipe to slow dow

Supplier's prices have shot through the roof in the last quarter and people's buying power has decreased through inflation which seems like a recipe to slow down the economy but, I'm not an economist.

tomatowurst 4y ago
You are correct and doesn't take an economist to figure this out. VISA and Paypal's reduction was a major red flag. Contrary to permabulls, when goods get expensive, people actually just stop consuming those goods or reduce it. It's bad because companies have to lower prices but they can't because of supply chain issues. So we are beginning to see what many economist have predicted: simultaneous stagnation and inflationary prices. I personally think that we might end up like Japan with a permanently low interest rate at the cost of stagnation and continued inflation that destroys the middle class and pushes people on the fringes further. It's likely that the whole pandemic measures while legitimate in itself, also had a second ulterior beneficiaries, the ability to massively lockdown segments of the population and keep them inside. Looking at the Shanghai and now Beijing lockdown reminds of this yet the cases continue to rise which tells me the primary motive isn't to reduce covid over there. It will take far less to pull off the same thing in free societies, fear portrayed by mainstream media and experts is all that is necessary to keep everybody from participating in mass protests and violence. It is said that if you do business with authoritarian countries, you start to resemble them and I fear that we are headed towards something like that from all we've seen in the past 3 years especially.
- FollowingTheDao 4y ago
  They will not do what Japan did. They will raise rates. And there will be people in the fringes no matter what they do. There is no way out of this trap, Then there will be an authoritarianism in the U.S., something like you have never seen before.
- breakthecycle 4y ago
  > It is said that if you do business with authoritarian countries, you start to resemble them and I fear that we are headed towards something like that from all we've seen in the past 3 years especially. As they say, you can judge a person by the company they keep. This is probably true of any system. You can evaluate a system by that which it is entangled with.

tomatowurst 4y ago

You are correct and doesn't take an economist to figure this out. VISA and Paypal's reduction was a major red flag. Contrary to permabulls, when goods get expensive, people actually just stop consuming those goods or reduce it. It's bad because companies have to lower prices but they can't because of supply chain issues. So we are beginning to see what many economist have predicted: simultaneous stagnation and inflationary prices. I personally think that we might end up like Japan with a permanently low interest rate at the cost of stagnation and continued inflation that destroys the middle class and pushes people on the fringes further. It's likely that the whole pandemic measures while legitimate in itself, also had a second ulterior beneficiaries, the ability to massively lockdown segments of the population and keep them inside. Looking at the Shanghai and now Beijing lockdown reminds of this yet the cases continue to rise which tells me the primary motive isn't to reduce covid over there. It will take far less to pull off the same thing in free societies, fear portrayed by mainstream media and experts is all that is necessary to keep everybody from participating in mass protests and violence. It is said that if you do business with authoritarian countries, you start to resemble them and I fear that we are headed towards something like that from all we've seen in the past 3 years especially.

FollowingTheDao 4y ago
They will not do what Japan did. They will raise rates. And there will be people in the fringes no matter what they do. There is no way out of this trap, Then there will be an authoritarianism in the U.S., something like you have never seen before.
breakthecycle 4y ago
> It is said that if you do business with authoritarian countries, you start to resemble them and I fear that we are headed towards something like that from all we've seen in the past 3 years especially. As they say, you can judge a person by the company they keep. This is probably true of any system. You can evaluate a system by that which it is entangled with.