Quote:
Originally Posted by antzcrashing
Inflation is mad sticky, just look at your own habits, we buying shit at whatever the market price. I hate to say it but Fed is very right
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100% correct. Inflation is pernicious and is moving from asset class to asset class. Services are getting clobbered while durable goods are normalizing. Insurance, airfare, hotels are all still sky high. Wages are still on an upward trajectory and workforce participation will continue dropping.
Add to that the move to near-shore and re-shore manufacturing, increasing LNG exports, and federal clean energy mandates and this is a recipe for cyclical costs going up. Add to that the increase in labor costs in China.
We spent the last 45 years offshoring everything in order to reduce costs of consumer goods at home. We've pretty much run this playbook as as much as possible and we'll be in a period of increasing rates for at least the next few years / next major financial crisis.