[mctaylor]

Inflation is just the beginning - I've been trying to ramp up on the relevant economics and I'm developing a picture of what's happening. Focusing on prices I think is a mistake, the issue is beliefs/trust/future expectations. Inflationary fears create a dearth of trust, driving people to demand "more" for "less" (i.e. >1.0 return on the dollar). This creates inflation, which exarcebates inequality, and ultimately prices most people out of the market. Once this occurs, demand implodes and the real pain is the ensuing deflation.

Basically what we're seeing is the inevitable collapse of 50 years of supply-side economics (or "Reagonomics" or "Trickle Down Economics", as it's often referred to as). The inevitable result of this is wealth stratification and ultimately demand implosion.

The next 10 years should be interesting.

[spot5010]

I am interested in understanding this better. Any references that you can share?

[mctaylor]

https://www.project-syndicate.org/commentary/progressive-rec...

[spot5010]

Thanks!