Conservative economy logic, 2021

still rising?

Yep — we’re still dealing with the economic shocks of the worst pandemic in a century, and as of today, a full-scale war in Europe and Russian energy blackmail to boot. Inflation that’s still being seen all over the globe, not just in America. So, weird week to follow up on this.

But sure, keep pretending the economic shifts we’ve seen over the past 2 years are all the Feds’ fault — or whatever you were arguing below.

A one ounce gold coin can still buy a bespoke business suit. The $35 that use to be equivalent to that ounce of gold will now get you a mass produced hoodie. That's not pretend.

Supply and demand create price fluctuations in a market. Inflation is a different animal:

“The entire economy is MoviePass Now,” wrote Kevin Roose in The New York Times three years ago. That is, it was a fraud, financed by the Federal Reserve’s below-zero (in real terms) interest rates. Today, it’s an even bigger fraud. When the feds “inflate,” they distort prices and queer the whole economy. Soon, investors, businesses, and households get the wrong idea… make the wrong decisions… and real output falls, even as prices continue to rise. - excerpt from Bill Bonner's posting on rogue economics dot com a few days ago on June 10.