It's perplexing how some are quick to place all blame on "greedy price gouging capitalists" while you have a massive elephant in the room.
As a society, we pride ourselves on being logical yet we ignore the predictable consequences of injecting trillions into the economy amidst heavily damaged supply chains?
I'm not even referring to the downstream consequences such as the extreme fragility leading to blow ups like SVB. Just consider what might happen when you have trillions in new money competing for fewer goods.
Conventional economic policy lets you balance inflation with both monetary and fiscal policy. But there's no will to tax the money out of the economy again. The money printing delayed a lot of economic collapse that would otherwise have happened during the pandemic.
With all due respect, I'm of the opinion that this idea of maintaining an equilibrium through "easing" and "tightening" is a logical fallacy.
In practice, this theory has been shown to be deeply flawed with grave consequence. Each iteration of this easing/tightening cycle seems to make the entire system more fragile at an exponential rate.
In essence, with each iteration, the extent of easing or intervention needed is increasing exponentially. Simultaneously, the system's capacity to withstand tightening or normalization is decreasing exponentially, requiring further interventions sooner and with greater severity.
I believe this is the basis for prognoses such as Balaji's on the US economic hegemony. When examining the exponential increase of these factors, it becomes evident that there is little space left before hyperinflation sets in. While I do not think the collapse will occur in 90 days, it may transpire in 900 or even 3000 days.
As a society, we pride ourselves on being logical yet we ignore the predictable consequences of injecting trillions into the economy amidst heavily damaged supply chains?
I'm not even referring to the downstream consequences such as the extreme fragility leading to blow ups like SVB. Just consider what might happen when you have trillions in new money competing for fewer goods.