Prices- the world has gone mad., page-5

  1. 185 Posts.
    This is an important point you make, it's not rocket science, but when QE and cheap credit is pumped into the economy (since GFC 2008), inefficient economics promote unsustainable practices, which have been further supported by more cheap credit, rising housing values, the wealth effect. Basically, where Keynesian economics meets Austrian economics, or govt 'short run interference' meets its long term consequences.
    In real terms, as prices for breakfast, petrol, whatever goes up, people change habits, the tide turns unexpectedly quick, and an economic death spiral ensues, made worse by the preceding monetary/fiscal excesses having kicked the can down the road -"the recession we had to have"
    It will be a bumpy ride for some sectors who have been artificially supported in the past, and for those exposed to rising input costs, incomes from discretionary spending enterprises. However, it isn't doom and gloom, just market dynamics readjusting, but some businesses are exposed and best not to invest in for a while e.g. $42 breakfasts and like a $13 yeast cake a bakery wanted to charge me for -I felt bad telling them it wasn't going to give me $13 worth of satisfaction, and I wanted to buy it to help their business, but it was over the line too much for me.
    And I'm sure this isn't just me, but macro dominoes at tipping point
    it is a great and important point you make

 
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