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To: knighthawk

None of the other countries in the world did any better job of predicting their inflation either so Powell isn’t alone. The problem is that the factors feeding inflation this time - COVID, stimulus payments, supply chain, tight job market, oil shortage - haven’t come together in the past like they have now. Will historical weapons for fighting inflation like higher interest rates be as effective? Time will tell.


12 posted on 06/29/2022 12:32:33 PM PDT by DoodleDawg
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To: DoodleDawg
None of the other countries in the world did any better job of predicting their inflation either so Powell isn’t alone. The problem is that the factors feeding inflation this time - COVID, stimulus payments, supply chain, tight job market, oil shortage - haven’t come together in the past like they have now. Will historical weapons for fighting inflation like higher interest rates be as effective? Time will tell.

All countries have a similar beginning of this inflation... restricting the supply of oil in the global markets. All items produced and transported by oil derivatives (pretty much all products) increase in price as a result. Stimulus, supply chains, jobs, and sanctions have added since (and are the reason our inflation is higher than others) but it all started with restricting the supply of oil. It's simple supply and demand... demand is fairly constant... restrict supply and prices rise.

33 posted on 06/29/2022 12:50:56 PM PDT by pgyanke (Republicans get in trouble when not living up to their principles. Democrats... when they do.)
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