Inflation Jumps In May, page-35

Wakey Wakey

Inflation (Stageflation)

Its simple ... down to Green policies and Conflicts.

Get used to it people because nothing is going to change only get worse.
People cant cut more when the price of everything around you goes up and they are now just surviving, basically people are becoming less well off every day.

"The government is by far the biggest borrower. Raising interest rates can have no impact on demand, as the government will simply borrow more, and the central banks simply have no say. During the Great Depression, for example, Washington forced the Federal Reserve to implement QE policies to artificially lower rates to increase demand. Yet, when Washington ordered the Federal Reserve to do the same during the Korean War in 1951, the central bank first broke with Washinton and refused to comply as it knew it would hurt the economy as America’s budget was no longer balanced.

Quantitative Easing destroyed the Keynesian model, and there is now no other alternative for central banks to control the economy. If they raise rates, the budget explodes. The Keynesians advocate manipulating demand and advocate fiscal spending that the central bank cannot control. However, the other part of Keynesianism is the manipulation of taxes. Keynes argued that to stimulate demand, you lower taxes. He saw this correctly, but again, it does not fit with government agendas.There is no limit to what the government will spend with “money” that simply does not exist. Governments continue to borrow perpetually with no real intention of paying back their debts. The business cycle cannot be manipulated, and what’s more, the Keynesian model cannot account for declining confidence in both government and the economy".