Daniel Lacalle: Not only is the Iran war causing a decline…
"Not only is the Iran war causing a decline in global output, but the world’s central banks continue to embrace easy-money policies. This will result in more dollars (or sterling, euros, or yen, etc.) chasing fewer goods. This will further fuel rising prices. This is why we continue to see a general rise in prices. If rising prices were merely a result of falling output in Persian Gulf related goods, then we’d see rising prices in some areas result in falling prices in other areas. In other words, if the money supply were reasonably stable, consumers would respond to rising prices in some areas by cutting spending in other areas. But the CPI suggests that’s not happening. Thanks to continual infusions of new money through loose monetary policy, consumers are able to continue bidding up prices in all areas, even as price increases in the energy sector rise to multi-year highs".
@ryanmcmaken
@mises
https://x.com/dlacalle_IA/status/2056785380163158113?s=20
