supply and demand drives inflation as with most anything else. post COVID
supplys were limited, workers refused to return to work, some never. The Fed
focused only on unemployment rates (Economists call that relationship the
Phillips Curve) and the stockmarket, attempted to control inflation with high
interst rates as if the cause was an over inflated economy. The strategy did not
work, no suprise. Was the strategy, synical, ignorent or a planed deception.
Causes
1 Labor shortage
2 Excess money supply
3 Supply shortage
4 Decreased merchant volumn, defensive pricing
(unstable vicious circle in combination)
Stock market has more to do with capital divergence and excess profit from massive imports and division of labor, but inflation also to a degree.
THE FATE OF THE DAY , just released, The war for America QUOTE George Washington. Our conflict is not likely to cease so soon as every good man would wish....Our cause is noble. it is the cause of mankind, and the danger to it springs from ourselves. March 31, 1779
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