Deglobalization Is Inflationary

August 15, 2022

Now globalized perfection is breaking down and costs rise. Price cutting is being replaced with price gouging, a substitution that consumers recognize as inflation.

Deglobalization is not a quick or painless process. The ride down will be bumpy and cost increases have many sources. Profits will become harder to come by and scarcities will knock down global rows of dominoes in unexpected ways. External costs that piled up for the past 30 years have come due and must be paid.

Inflation isn't transitory or within the control of central banks. The forces at work are far beyond the reach of central bankers. Cost of credit matters, but so does the real world.

https://www.oftwominds.com/blogaug22/globalization-inflationary8-22.html

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