One big reason for the inflation is that supply is disrupted.
Supply is not just being 'disrupted', it is straight up being shrunk on purpose. For many things the supply will never again go back to pre-Covid levels, at least not for a very long time. People think supply will resume and thus plentiful, cheaper goods are going to come bouncing back here soon... news flash, they won't.
And everyone top to bottom is in on it. As a side note, I was watching a Jim Cramer video clip on CNBC today, and caught him muttering to another talking head, "Well, you know, the Fed would like to see companies cut back on producing so much... that's why they're doing what they're doing." He *actually* said that on air.
My mouth dropped open. I was like, WTAF did I just hear?? So the Fed is now dictating or directing how much 'supply' of goods and services corporations will produce, by throttling the Fed funds rate.
Wow, just wow.
If I only think about what humanity should do to mitigate climate change, then producing less stuff, and making it closer to the consumer, is a good thing. I'm not sure there is any plan for higher ups to do this, and especially not at the Fed, I'm not sure what Cramer is smoking.
The Fed's role (and the ECB) is first and foremost to control inflation, and after a decade of not having to do anything about it as it was low, now is the time to do something for them. Too bad that inflation isn't linked to things that the tool of interest rates can solve, so their actions will probably not tame inflation (or not enough), but there will be other consequences.
What it means for BTC, I don't know. Yesterday I had a bad feeling about hodling 20K, and this morning we dipped below...