Pozsar Says L-Shaped Recession Is Needed to Conquer Inflationwww.bloomberg.com/news/articles/2022-08-02/pozsar-says-l-shaped-recession-is-needed-to-conquer-inflation
197 sats \ 3 comments \ @k00b 2 Aug 2022 bitcoin
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100 sats \ 1 reply \ @cryptocoin 2 Aug 2022
There's a thread by gladstein about the report. The Tweet that kicked off the thread is:
New Zoltan says inflation hasn't peaked, but is just getting started
Says the "low inflation world" stood on three pillars:
-Cheap immigrant labor keeping wages down -Cheap goods from China raising living standards despite stagnant wages -Cheap Russian gas powering the EU
https://twitter.com/gladstein/status/1554552612501958656 https://nitter.it/gladstein/status/1554552612501958656 <-- Shows the thread in a single, easy-to-read, web page
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125 sats \ 0 replies \ @KingZing 3 Aug 2022
Cheap immigrant is still coming in, especially when the US maintain its competitive growth and opportunity, I don't see that changing any time soon.
Cheap goods aren't just from China anymore, the biggest advantages trading with China was its great supply chain, from raw material, manufacturing and transport. I think it's not an irreplaceable advantage though, since much of it could be moved offshore.
EU will have to accept they will struggle due to Russia/Ukraine conflict. That being said, I think Russia doesn't want to drag the war out, and the energy transition will take time to complete.
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100 sats \ 0 replies \ @sb 2 Aug 2022
The quiet part out loud: "central banks are done fighting deflation with asset price inflation, and are now fighting inflation with asset price deflation", Zoltan masterfully explains.
Source: https://twitter.com/BlacklionCTA/status/1554458597282701313?t=WcksuCglUkcxWWKlSFj04Q&s=19
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