I hope everyone is enjoying life since Liberation Day in the golden era!
US wages to Gasoline have not been this low since the GFC.
While everyone is screaming inflation, the reality is this.
Monetary inflation = claims/ouput.
Oil supply shock is NOT monetary inflation. Here is why
You only have $10 to spend. There are 10 items you normally purchase for $1 each. When 1 item rises to $2 then you will not have enough money to buy 1 item and will only purchase 9 items.
Now, if you go out and borrow the extra $1 and buy the 1 item you couldn't before, now you are increasing the # of claims relative to shrinking output. Now it becomes monetarily inflationary.
This is what Trump did over covid when he was buying votes by borrowing and handing out like candy to everyone while sitting on the couch expressing demand without any ability to supply and support it.
Solution? Blame Biden and blame supply chains. NOT the free candy Trump was passing out to get reelected.
See, it's simple! Use your words, not math!
If you enjoy the work: 👉 Drop a solid comment. Let’s push it to 7,000 and keep building a community grounded in raw truth, not hype.
US wages to Gasoline have not been this low since the GFC.
While everyone is screaming inflation, the reality is this.
Monetary inflation = claims/ouput.
Oil supply shock is NOT monetary inflation. Here is why
You only have $10 to spend. There are 10 items you normally purchase for $1 each. When 1 item rises to $2 then you will not have enough money to buy 1 item and will only purchase 9 items.
Now, if you go out and borrow the extra $1 and buy the 1 item you couldn't before, now you are increasing the # of claims relative to shrinking output. Now it becomes monetarily inflationary.
This is what Trump did over covid when he was buying votes by borrowing and handing out like candy to everyone while sitting on the couch expressing demand without any ability to supply and support it.
Solution? Blame Biden and blame supply chains. NOT the free candy Trump was passing out to get reelected.
See, it's simple! Use your words, not math!
If you enjoy the work: 👉 Drop a solid comment. Let’s push it to 7,000 and keep building a community grounded in raw truth, not hype.
Trade ativo
As expected. ;)
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
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As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.