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> Call me crazy, but I have a simpler explanation for the spike in inflation we saw in 2021 > The Fed has been funding extremely reckless fiscal policy for two

by sofixa 4y ago

> Call me crazy, but I have a simpler explanation for the spike in inflation we saw in 2021 > The Fed has been funding extremely reckless fiscal policy for two years. We literally shut the economy down and gave people checks for doing nothing. I don't think we need to reach for fancy explanations. The reason for inflation seems plainly obvious to me. You're not crazy, just willfully narrow-minded. How does your theory explain the inflation seen all around the world, including in countries with vastly different Covid policies? Take Sweden, no lockdowns at all, but the economy still slowed down due to people making different choices. However there were no mass layoffs and no "checks for doing nothing". Still, inflation is at 10%. The pandemic (distributions to the economies and global supply lines) and a war disrupting critical raw materials (foodstuffs and energy) have contributed to the inflation, a lot. Nobody can say how much exactly, but blaming any single factor is willful narrow-mindedness.

kypro 4y ago
> You're not crazy, just willfully narrow-minded. How does your theory explain the inflation seen all around the world, including in countries with vastly different Covid policies? Take Sweden, no lockdowns at all, but the economy still slowed down due to people making different choices. However there were no mass layoffs and no "checks for doing nothing". Still, inflation is at 10%. Energy and the USD, mainly. In Europe inflation is high primarily because of energy costs. Local currencies are also down 10-20% vs the USD and Europe imports a lot of stuff in dollars. That said, I'm not sure about the exact breakdown of inflation in Sweden specifically so I can only comment generally. I also add that domestic stimulus measures in the US (both monetary and fiscal) have a significant global impact today. If demand for oil or other commodities rise in the US then they do in markets around the world too. Excessively reckless monetary and fiscal stimulus in the US combined with today's reckless tightening is causing havoc in developing markets around the world.

by sofixa 4y ago

kypro 4y ago

> You're not crazy, just willfully narrow-minded. How does your theory explain the inflation seen all around the world, including in countries with vastly different Covid policies? Take Sweden, no lockdowns at all, but the economy still slowed down due to people making different choices. However there were no mass layoffs and no "checks for doing nothing". Still, inflation is at 10%. Energy and the USD, mainly. In Europe inflation is high primarily because of energy costs. Local currencies are also down 10-20% vs the USD and Europe imports a lot of stuff in dollars. That said, I'm not sure about the exact breakdown of inflation in Sweden specifically so I can only comment generally. I also add that domestic stimulus measures in the US (both monetary and fiscal) have a significant global impact today. If demand for oil or other commodities rise in the US then they do in markets around the world too. Excessively reckless monetary and fiscal stimulus in the US combined with today's reckless tightening is causing havoc in developing markets around the world.