There's such a disconnect, grocery shopping is painful and real world inflation in my cart is 30-65% and filling the car is also 50% more expensive, and companies are laying off. I'm glad markets are up, some say Bull has begun, but so detached from reality. It feels like climbing up one of those Drop Tower amusement rides and waiting for the big drop.
One of the recurring themes I touch on when discussing inflation is the impact of price distortions. In some regards the absolute percentages of headline inflation are almost trivial. The real economic damage is that food, energy, and "core" inflation are all increasing at different rates, creating a perpetual disequilibrium for consumers.
But nature never tolerates disequilibrium for long. Eventually there is that "reversion to the mean"--it can be slow or swift, but eventually the disequilibrium will correct itself, and that correction will sweep over everything and everyone without fear or favor.
Great analysis.
There's such a disconnect, grocery shopping is painful and real world inflation in my cart is 30-65% and filling the car is also 50% more expensive, and companies are laying off. I'm glad markets are up, some say Bull has begun, but so detached from reality. It feels like climbing up one of those Drop Tower amusement rides and waiting for the big drop.
There is a huge disconnect.
One of the recurring themes I touch on when discussing inflation is the impact of price distortions. In some regards the absolute percentages of headline inflation are almost trivial. The real economic damage is that food, energy, and "core" inflation are all increasing at different rates, creating a perpetual disequilibrium for consumers.
But nature never tolerates disequilibrium for long. Eventually there is that "reversion to the mean"--it can be slow or swift, but eventually the disequilibrium will correct itself, and that correction will sweep over everything and everyone without fear or favor.