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onetricky

15,119 Posts.

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07/10/22

01:41

Post #: 64074634
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Originally posted by Baron1 ↑

Issue is no longer this. Issue now is how do you get companies to drop prices? Yesterday Ford increased prices again, why? Because wages continue to go higher. So how do you get workers to take pay cuts? Simple you can't to either. Hence inflation can't be stopped so easy, its a vicious cycle that is like the famous symbol of a snake eating its own tail.

Prices continue to go higher and therefore workers continue to demand more pay, then companies raise prices again, on and on in a never ending cycle, unless? You raise interest rates to break consumer demand and bring a recession. Then things reset, without it inflation remains sticky as seen by CPI.

P.S. This would have been helpful months/years ago but it is imbedded now in that cycle. That central banks will break with the only tool they have, interest rates and with it the economy. Why doesn't Costco drop prices? Wage costs etc etc.

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ban inflation and all fixed.

good morning!

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