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A world without inflation
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<blockquote data-quote="Cowabunga" data-source="post: 8198637" data-attributes="member: 718"><p>Actually its not. Inflation today is supply side inflation caused by very high energy costs primarily, along with the issue of a decreasing currency value due to difficult trading conditions, especially for exporting.</p><p>There is no way on earth that you can blame current gas and fuel prices, resulting in the more than doubling of fertiliser price on so-called quantitive easing. It is due to underinvestment in energy and poor energy security adversely impacted by a war in a major supplying region. Same goes for food but related to the cost of producing it not because the consumer has so much cash that they are throwing it away. If they cannot or will not cover the increased cost of production, stuff including food, will not be produced.</p><p></p><p>Mainly this is the cost we all have to pay for opposing the Russian invasion of Ukraine. Had not some particular European countries left themselves so exposed to Russian energy blackmail, the price increases would be far less all-round.</p><p></p><p>The proof that it is supply side inflation is the general consensus that the usual method of curbing inflation by significantly raising interest rates just will not work. It is not demand inflation or wage driven inflation. It is unavoidable and will make the vast majority of ordinary people worse off for at least a couple of years unless Russia withdraws, which is unlikely.</p></blockquote><p></p>
[QUOTE="Cowabunga, post: 8198637, member: 718"] Actually its not. Inflation today is supply side inflation caused by very high energy costs primarily, along with the issue of a decreasing currency value due to difficult trading conditions, especially for exporting. There is no way on earth that you can blame current gas and fuel prices, resulting in the more than doubling of fertiliser price on so-called quantitive easing. It is due to underinvestment in energy and poor energy security adversely impacted by a war in a major supplying region. Same goes for food but related to the cost of producing it not because the consumer has so much cash that they are throwing it away. If they cannot or will not cover the increased cost of production, stuff including food, will not be produced. Mainly this is the cost we all have to pay for opposing the Russian invasion of Ukraine. Had not some particular European countries left themselves so exposed to Russian energy blackmail, the price increases would be far less all-round. The proof that it is supply side inflation is the general consensus that the usual method of curbing inflation by significantly raising interest rates just will not work. It is not demand inflation or wage driven inflation. It is unavoidable and will make the vast majority of ordinary people worse off for at least a couple of years unless Russia withdraws, which is unlikely. [/QUOTE]
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