1/
Inflation will come down because it wasnt inflation due to money printing. It was a price increase due to the shock to the supply chain and shutting down of the global economy.
1/
Inflation will come down because it wasnt inflation due to money printing. It was a price increase due to the shock to the supply chain and shutting down of the global economy.
So the question is we will see hyper deflation?
Well that ends up being called a massive depression. With international money, we have been in deflation since 2008. The Japanese were in it for 30 years. So the supply chain/economy lockdown solves that briefly.
But I think we end up turning down a great deal more. Hyperdeflation is not likely since that would be a crash of epic proportions. And deflation manifests itself often in jobs.
By the way, this is my third comment to you on this thread. I think I might of lost one.
Take that to the bank.
It is indeed coming down
#finance
Yeah and by the time the #fed wakes up and realizes things are going out of control, it will really be out of control.
Their mo, always late to the party.
2/
Of course, the #fed needs to keep up theatrics, so they will raise interest rates claiming to "fight inflation" even though Powell admitted to Congress it wont get more oil out of the ground or crops grown.
3/
They will run the Phillips curve playbook in spite of the data telling us things are in bad shape. It is deflation that the market sees. Yet they will keep going until they smash things completely.
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Of course, Powell will go in front of Congress and brag about how Congress wanted the Fed to get prices down and it did. It is like fixing the wall paper peeling off by burning the house down.
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And saying, see, not more wall paper problem.
Yes, people will be praying for inflation if a deflationary spiral takes off.