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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (175814)	8/6/2021 11:28:16 PM
From: sense	Respond to of 217942

an instant 'downer' for inflation... Addressed previously... Has ZERO impact on inflation... short term... The "shock" in a reduction in demand that occurs... doesn't alter the relative ability to meet the demand at X price in the future... so, no real change occurs relative to the price of other things... you just go without those things you would have otherwise had. Variations in the demand with a short term reduction... are not altering the structure of the market and its capacity to deliver X at Y price. But, the providers of X have to eat the lack of sales... As the time drags out... the impact is the opposite. Cutting off your suppliers from sales... makes them go away. It makes them seek other customers... it makes them go broke... and in aggregate... it reduces the future supply available... and ensures "more"... will cost more than it did before. That's a micro view of the "structural" aspect of the drivers of inflation we have now... as a result of the pandemic shutting things down... those things falling apart... and the parts of those things drifting apart so that they cannot be put back together quickly... Shut down a mine for a year... and the miners go off and get other jobs... and they don't come back. You can hire new people... at much higher wages... train them at great cost... and still be less capable than before... Multiply that times every business in the economy... and no one is "price gouging"... its just STRUCTURAL inflation... not resulting from bad monetary policy... but from bad governance... that mismanages pandemics and economics both... China "fighting inflation" by throttling businesses back... is dumb as a box of rocks... But, I don't believe that's what they're doing... that's just the spin being applied to having to throttle back... Which is still as dumb as a box of rocks... to make that the spin...