Blackrock, a leading shareholder/investor in industries that benefited from the pandemic and lockdowns, such as Pharmaceuticals (Pfizer, Moderna), podcast and social media firms (like Spotify, Facebook, Twitter) and real estate firms, greatly benefited from the pandemic-related inflation and easy monetary policies.
“Supply constraints”, he nails the reason why we have higher inflation, caused largely by Covid lockdowns and Covid isolation policies. He also rightly identifies another policy that’s going to raise inflation even further, and that’s chasing the insane goals of Net Zero.
True but the firm's portfolio greatly benefited from the lockdown and ensuing inflation in its Pharma, real estate and social media sectors so they should allow for some deflationary measures like interest rate hikes to cool down the prices for the middle and low income folks who now rely mostly on printed money! The money supply has skyrocketed so it's not only lower supply of goods but higher supply of money. Delaying interest rate hikes will only have a snowball effect on inflation.
I agree to a certain extent, but as voiced in the clip you supplied, raising interest rates should be a mechanism to deflate an overheating economy, a tool designed to put less money in people’s pockets. The economy isn’t overheating as such, it’s the old adage of supply and demand, but more importantly the causes of it, which in this case is historically different in many respects, what we have at the moment is stagflation. The raising of interest rates won’t work..although indeed, it’s probably the only way to get rid of Government debt, inflate it away. The problem there is people lose everything. Invest in gold and silver imo.
“Supply constraints”, he nails the reason why we have higher inflation, caused largely by Covid lockdowns and Covid isolation policies. He also rightly identifies another policy that’s going to raise inflation even further, and that’s chasing the insane goals of Net Zero.
True but the firm's portfolio greatly benefited from the lockdown and ensuing inflation in its Pharma, real estate and social media sectors so they should allow for some deflationary measures like interest rate hikes to cool down the prices for the middle and low income folks who now rely mostly on printed money! The money supply has skyrocketed so it's not only lower supply of goods but higher supply of money. Delaying interest rate hikes will only have a snowball effect on inflation.
I agree to a certain extent, but as voiced in the clip you supplied, raising interest rates should be a mechanism to deflate an overheating economy, a tool designed to put less money in people’s pockets. The economy isn’t overheating as such, it’s the old adage of supply and demand, but more importantly the causes of it, which in this case is historically different in many respects, what we have at the moment is stagflation. The raising of interest rates won’t work..although indeed, it’s probably the only way to get rid of Government debt, inflate it away. The problem there is people lose everything. Invest in gold and silver imo.