Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Winfastorlose who wrote (1354936)	4/20/2022 8:18:13 AM
From: sylvester80	1 Recommendation Recommended By pocotrader Read Replies (1) \| Respond to of 1578436

To the trumptard idiots: Inflation is a GLOBAL PROBLEM, not a U.S. problem U freaking idiots High inflation? It's a global story Brian Cheung ·Reporter Wed, April 20, 2022, 3:04 AM Americans are not the only ones feeling the pain of high inflation. It’s bogging down almost every other nation as well. A fresh round of economic forecasts from the International Monetary Fund (IMF) on Tuesday lowered global growth prospects, in part because of rising price pressures. Making matters worse: the Russian invasion of Ukraine. “Inflation is a clear and present danger for many economies,” IMF Chief Economist Pierre-Olivier Gourinchas told Yahoo Finance Tuesday. In January, the IMF projected global growth of 4.4% in 2022. Yesterday’s update downgraded that forecast to 3.6%. Globally, the IMF predicts that prices in “advanced economies” (like the U.S.) will rise by 5.7% this year. In emerging market and developing economies, inflation is projected to clock in at 8.7% this year. Those figures make it clear that inflation is not a phenomenon exclusive to the U.S., where Consumer Price Index readings from March showed prices rising by 8.5% year-over-year. inflation The IMF warns that these pressures will “remain elevated for longer” than it had originally expected earlier in the year, due to the disruption to energy and metal exports from Russia and wheat exports from Ukraine. A zero-COVID policy in China could scramble supply chains out of Asia as infections rise. All of this means that central banks like the Federal Reserve will have to deliver the medicine of higher borrowing costs to tamp down on inflation. In the U.S., Fed Chairman Jerome Powell is on the warpath against higher interest rates, with all signs pointing to a king-sized interest rate increase of 0.50% next month (not done since 2000). The Bank of England is a few steps ahead of the Fed on tightening, and the European Central Bank appears poised to follow soon. The problem: the cure could be worse than the disease. Pull the crisis-era stimulus too fast, and the central banks could tip the economy into recession (see: yield curve inversion). “This is certainly a serious downside risk,” Gourinchas said Tuesday, adding that central banks need to be careful as they walk that “fine line.” Either way, the outcome is going to be the same. Raise rates and lower inflation? Higher borrowing costs lowers consumption… and leads to slower growth. Move too slow and inflation runs rampant? High prices erase wage gains and lowers consumption… and leads to slower growth.