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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: THE ANT who wrote (8354)1/26/2022 2:32:34 AM
From: elmatador  Read Replies (1) of 13789
 
What caused the Structural inflation? The one the Fed has to fight.
The Capital Expenditures collapse.

The Capex Collapse

Trade wars, tech disruption and structural shifts in investment all bear some of the blame. What will it take to bring capital spending back?
gfmag.com

If capital is not invested in productive asses:
  • New microchips factories
  • Exploration and roduction of oil and gas
  • Fatories expansion
  • Transportation fleets
  • Tractors
  • Warehouses
  • Mining expansions
  • ...

But the economy kept growing, it came a points (since last year) when there is more demand than supply.
Inflation will start tapering off only when supply and demand are rebalanced.
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