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No it doesn't, every single study recently done which I have seen has been cherry picking its data with an intention to make it look like its not inflation doing this but corporate greed. This unfortunately is par for the course with any economics; its a how can we both be right, while me being right in a way that I can justify what I want to do if I'm the economist without actually being right and damn the world. Its not inflation its greedy corporations, nevermind that they've printed significantly more money than we have and buying their own bonds control yield. Here's a shocker, this happens every single time in history where the government doesn't want people to know its inflation or where it allowed debasing the currency. By how much, you obviously don't know. Additionally, and I'm going to say this slowly. Inflation is a lagging indicator, and the metrics you are using were changed to make it look like it was better than it actually is and the Fed didn't hike rates as high as they should have when they could; also Basel III makes banks less responsive to changes in interest rates so you get a magnificent perfect storm, you've already seen some bank failures. Next will effectively be nationalization but under another name because all the other banks went out of business that could absorb the losses. You say look at corporate profits, in inflation of course profits are going to go up, just like taxes will go up, initially. Inflation doesn't hit the entire economy all at once. It starts at the first level producers, and then makes its way up in cascading price changes. Companies who's impacts aren't as reliant on physical goods are the last to increase and those who want to stay in business must raise the prices accordingly its simple mechanics, and companies who offer products with narrow proft margins must do this pre-emptively. Initially it shows profits, and then it levels out as inflation slows, or increases as inflation increases. Its out of your hands because the fed has the money printer and has been printing ever increasing amounts of money since 2010 to give the illusion our economy was doing well (under the name Quantitative Easing). This is all very very basic. Ray Dalio wrote a series called Big Debt Crises, I suggest you look at the case studies for hyper-inflation events. We are on-track except the Fed made a monetary policy f'up and didn't pull a Volcker while also creating new problems with Basel. Initially after the pandemic we had demand pull because our supply chains broke down, and now we are starting to see cost-push inflation, and the bubble on the ledger waiting to unwind is several trillion. We haven't seen nothing yet, and you are supporting actions that will lead to shortages, which leads to food insecurity which leads to unrest and death from starvation. Absolutely amazing, and that' not even touching on the problems with central planning of which there are many. |