| U.S. inflation 6.2% on 08:59 - Nov 11 with 706 views | Guthrum |
Tho I'm not sure how much good raising interest rates would do when the inflation is caused by an actual shortage of goods (in the supply chain, as well as at point of manufacture), rather than an excess of credit. After all, many people have continued earning through the pandemic, but had their usual consumerist options limited (travel, leisure, going out), so are simply spending the surplus. |  |
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| U.S. inflation 6.2% on 09:32 - Nov 11 with 644 views | Timefliesbyintheblue |
There was I thinking that shortage of goods and or inflation was only happening in the UK, with Brexit being to blame! |  | | |
| U.S. inflation 6.2% on 09:35 - Nov 11 with 633 views | Keno |
| U.S. inflation 6.2% on 08:59 - Nov 11 by Guthrum |
Tho I'm not sure how much good raising interest rates would do when the inflation is caused by an actual shortage of goods (in the supply chain, as well as at point of manufacture), rather than an excess of credit. After all, many people have continued earning through the pandemic, but had their usual consumerist options limited (travel, leisure, going out), so are simply spending the surplus. |
I agree with that as the current cause, but there is a longer issue that economises have got used to the artificially low interest rates brought in after the financial crash and at some stage we have wean ourselves off of them.
Governments won't mind inflation being around 5% and interest rates creeping up to sustain that as it will help reduce the loan term value of the debts they have built up |  |
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| U.S. inflation 6.2% on 16:18 - Nov 11 with 527 views | BanksterDebtSlave |
| U.S. inflation 6.2% on 09:35 - Nov 11 by Keno |
I agree with that as the current cause, but there is a longer issue that economises have got used to the artificially low interest rates brought in after the financial crash and at some stage we have wean ourselves off of them.
Governments won't mind inflation being around 5% and interest rates creeping up to sustain that as it will help reduce the loan term value of the debts they have built up |
.....and stuff the citizens.
Edit...well the poor ones, so who cares! [Post edited 11 Nov 2021 16:20]
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| U.S. inflation 6.2% on 19:32 - Nov 11 with 454 views | WeWereZombies |
| U.S. inflation 6.2% on 09:35 - Nov 11 by Keno |
I agree with that as the current cause, but there is a longer issue that economises have got used to the artificially low interest rates brought in after the financial crash and at some stage we have wean ourselves off of them.
Governments won't mind inflation being around 5% and interest rates creeping up to sustain that as it will help reduce the loan term value of the debts they have built up |
But there is going to be a sustained period (maybe centuries even) when the new economies driven by reduction in energy use whilst at the same time accommodating increased population flatten the usefulness of both interest rates and money supply to achieve the 1.5 degrees target (and any other environmental necessity).
Although the aim has to be sustainability for a long term future in a strange way the Maynard Keynes quip 'don't worry about the long term, in the long term we're all dead' still holds in as much as very drastic new economic models are needed now and in the medium term to maintain some semblance of social order. [Post edited 11 Nov 2021 19:56]
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| U.S. inflation 6.2% on 22:20 - Nov 11 with 368 views | Lord_Lucan |
With global shipping costs up around 500% I'm not sure how you are going to stop inflation going through the roof.
Biden doesn't seem to understand the basics of economics in the first instance.
Rishi understands it but is playing it down for political reasons.
The global shipping crisis and shipping lines profiteering will go on for three years and the aftershock of Covid will last a generation. |  |
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