Post
Topic
Board Economics
Re: Is this a clear sign of high inflation?
by
jaberwock
on 03/12/2021, 12:22:35 UTC
I'd say it's a clear sign that governments all around the world have been buying assets and printing money like crazy. It has been going on for far too long now, pretty much since the 2008 recession and it kicked back into overdrive mode at the start of Covid. Sure, they might have averted an immediate recession but it just tends to push the problem down the road and now we're starting to see runaway inflation. It's going to hurt a lot of people when interest rate rises kick in - credit has been so cheap for so long that people won't be able to cope when their mortgages start to double or triple in cost in a few years time. It was reckless behavior by central banks and rather lazy, they tend to change their minds and adapt too slowly while claiming to be super experts.
Sometimes I do ask myself, is it that the government doesn’t know the consequences of the actions that they are taking? How can a government that is filled with lots of people who can sit down and discuss any issue, not know that there are going to be consequences to the actions that they are going to be taking? Seriously, I do think about this a lot, because I’m sure that before the government takes any action there are lots of people there who would have to sit down and discuss about the action that the governments are going to take and whether it is a good one or not, and how it is going to affect the economy of the country.