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I thought the current inflation is primarily driven by high energy prices and disrupted supply chains and those are primarily driven by war and the pandemic?
by adrianN 4y ago
I thought the current inflation is primarily driven by high energy prices and disrupted supply chains and those are primarily driven by war and the pandemic?
- curiousgeorgio 4y ago> I thought the current inflation is primarily driven by high energy prices and disrupted supply chains and those are primarily driven by war and the pandemic? Nope. You'd be wrong. It's the trillions of dollars unnecessarily printed by the fed. A large part of that went to business owners who didn't actually need it, but took advantage of all the "free money" (and who could blame them when the gov't practically gave it away). That money was quickly invested into real estate and equities markets, leading the way for inflation in the rest of the market, albeit with some delay. And we're not even at the worst yet.
- adrianN 4y agoHm, where I live real estate and equities are currently down, but inflation is up. Maybe it's different in the US.
- imtringued 4y agoYou are pretty much spot on, Japan tried to massively increase the money supply and that didn't really do anything, if anything it proves that interest is a vicious cycle, once the interest rate is too high to be serviced, you must borrow more money to service the interest which is a positive feedback loop. If you refuse to pay interest you basically stop the vicious cycle.