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RE: The Fed’s Dilemma

in Olio di Balena2 months ago

Welcome to stagflation, something mainstream economists insist should be impossible, because they think there is an inverse relationship between unemployment and inflation. This is nonsense. We are dealing with many factors, including money supply inflation, trade disruption from tariffs, and misallocated resources thanks to a massive web of subsidies and protectionism distorting every corner of the "free market" they claim we still have.

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For a lot of time, I am waiting for stagflation to really kick in. Maybe the catalyst will be the war on Iran and the high oil prices.

The "skyscraper curse" trend is due to kick in by the end of the year with Jeddah Tower topping off just as the easy credit dries up. We're still dealing with unprecedented money supply inflation during COVID. And then DOGE failed, and Trump has the biggest budget and debt ever. And that's all before a stupid war and its shock to the resources people need.

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