3 ms·

Less energy available -> less goods produced -> goods and resources diverted from civil to military production -> supply can't keep up with demand -> prices rai

Less energy available -> less goods produced -> goods and resources diverted from civil to military production -> supply can't keep up with demand -> prices raise -> inflation Raising the interest rates is just dumping the issue on the people in order to keep demand in check. Did I get this completely wrong or does it make sense? (unironically asking) Feels to me like this is largely a consequence of the geopolitical situation + rampant speculation on the markets. The financial autocrats already decided that we are the ones who are going to take the hit.

piuantiderp 4y ago
Never forget, you are the carbon they want to reduce.
jkepler 4y ago
Not disagreeing with your sequence of events, as reduced energy production and wars do send prices higher. But, there's another sequence to consider that I think is simultaneously happening: economic production makes a widget representing 100,000th of overall economy > prices set based on 100,000th of all money in existence > the banking system quadruples existing money in the system > the widget's price (eventually) quadruples as people realize there's a ton more money chasing the same number if goods. And, at least according to the St. Louis Federal Reserve bank's numbers, the US Dollar money supply has increased some 13x since the 2008 financial crises, and 5x since the beginning of 2020. Ballooning the world's reserve currency like that will have disastrous inflationary effects /at some point/. The fact its happening now, while tragic, seems wholely foreseeable.