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> not raising short rates would increase inflation Proxy war in eastern Europe, with USA dumping big $ there, is causing price rises.
by landemva 4y ago
> not raising short rates would increase inflation
Proxy war in eastern Europe, with USA dumping big $ there, is causing price rises.
- bagacrap 4y agoHow does that domestic impact service sector wages
- landemva 4y agoLarge debt issuance to fund federal government deficit spending causes dollar to devalue. This affects price of labor paid in dollars.
- nostromo 4y agoInflation was surging well before the Ukraine invasion.
- landemva 4y agoThe virus lockdowns ended and manufacturing supply chains have been clearing. Please tell us why price increases are continuing, instead of dramatically dropping.
- nostromo 4y agoBecause we printed trillions of dollars and haven’t come close to removing all that excess stimulus yet - nor have any supply side constraints that existed prior to Covid been removed.
- landemva 4y agoI thought the corona payments ended. Computer chips and PCs are largely back in stock. Fertilizer and fuel prices went higher in past year. This drove up food production prices. Molecule flow in pipeline to Germany was sabotaged, preventing sale of molecules from east to west which drove up natural gas prices at export ports in USA. Not a virus issue but a war issue.
- lxgr 4y ago> Computer chips and PCs are largely back in stock. Not sure if car manufacturers, the Raspberry Pi foundation, and many others would agree with that assessment. Energy prices in Europe have started coming down again as well. And Corona payments may have ended, but the money is still sloshing around in the system.
- landemva 4y agoRight, the specialized chips are still catching up. And Dell forecasts a 20% revenue drop this quarter. https://www.electropages.com/blog/2023/02/semiconductor-oversupply-memory-chip-prices-fall https://www.electropages.com/blog/2023/02/semiconductor-over... I had read that rpi started selling bulk to companies which is leaving little supply for consumers. Maybe upstarts like Orange Pi will step in to fill the void for consumers. http://www.orangepi.org/html/hardWare/computerAndMicrocontrollers/details/Orange-Pi-5.html http://www.orangepi.org/html/hardWare/computerAndMicrocontro... >> payments may have ended, but the money is still sloshing around in the system. How would existing money cause additional inflation? It would flat-line, not increase.
- lxgr 4y agoBecause it's making people itchy to spend it (or invest it into something productive or at least inflation-neutral). Until either inflation itself or other forces (such as interest rates) counterbalance that effect, we'll be seeing increased spending velocity – the other component of inflation besides the amount.
- HWR_14 4y agoWhy wouldn't you expect price increases to continue?
- watwut 4y agoRussian troll.
- mindslight 4y ago"Proxy war" ? Asserting that Russia only invaded Ukraine at the behest of another country (China?) is a pretty strong claim.