It's partly "animal spirits" but if the man raising cattle has to pay more for his supplies, and the butcher more for his supplies and rent and taxes, etc., those get passed on to the consumer. Yes, it snowballs, but it's also real.
Deflation, given our debt (both personal and government) would be worse than the 1970s stagflation we have going on now.
Real estate won't drop, I don't think, because to many people are leaving shithole cities/states and moving where things don't suck. Certain areas will decline, but other areas will see a shortage.
Doesn't explain the prices going up. Shortage of goods. increased demand, corrupt practices (housing), etc...I still see prices going up, regradless.
It's partly "animal spirits" but if the man raising cattle has to pay more for his supplies, and the butcher more for his supplies and rent and taxes, etc., those get passed on to the consumer. Yes, it snowballs, but it's also real.
Deflation, given our debt (both personal and government) would be worse than the 1970s stagflation we have going on now.
Real estate won't drop, I don't think, because to many people are leaving shithole cities/states and moving where things don't suck. Certain areas will decline, but other areas will see a shortage.
i think it is both, but just been egregiously distorted. lots of money changing hands at the highest levels, but velocity low at the consumer level
This is the only reason we’re not seeing runaway hyper inflation
Go back to monetary models 101.
Velocity is not aggregates.
And commecial banks create the larger in circulation money, not Fed with its M0 creation. Even BoE admits this.
Inflation is, and always will be, a monetary phenomena.