Unless people understand this they won't understand how the all the Fed's work trying to get inflation under control simply cannot fully work. It's because the real causes are not controllable anymore.
It's quite possible that inflation will be a problem (at least until Covid settles down some in places like China and no new Variants show up for awhile.)
However, the new Variants likely will show up because 500 million to 1 billion people in China are not vaccinated and you are likely going to see between 1 and 5 million people (mostly over 45 and over 65) dying in the next year or two in China from Covid. This is an estimation of course and likely even if this many actually die the Chinese Government simply will not report this either because no good would come to the government there as a direct result of the truth getting out. However, the likelihood of 1 to 5 million people in China ACTUALLY dying of Covid in the next year is a realistic assessment at least at this point.
Climate changes like we are experiencing here in California where we simply cannot really grow 4 crops a year like before are having a disastrous effect on produce prices not only in California but also nationwide and to some degree worldwide too. Why?
Because people in California and richer states are willing to pay more for good produce. So, if they cannot get it here they will import it which might cause more starvation wherever they are importing it from. Starvation mostly at this point is caused by prices being too high in those countries for food for them to survive physically anymore. So, this is why people (millions) are moving from Central and South America north to the U.S. and Canada just to survive at all with their families at great risk to everyone.
The third cause is the War in Ukraine which is a problem for inflation because the Ukraine and Russia are the Breadbaskets for wheat products to the Middle East and Africa. Without the grain products moving to Africa and the middle East from Ukraine and Russia, millions will die by starvation and inflation causing starvation in Africa too.
So, this inflation problem is bad enough in the U.S. but a leading cause of death worldwide too because it out prices what the average person can afford to pay for food and still pay rent in most places on earth at this point.
People have to decide whether to be homeless and eat or whether to pay rent and starve. This is really bad for poorer people all over the world right now and is likely to get much worse over time because of all these factors making it worse every day now.
Also, natural gas prices where I live in California just went up (or will soon) about 21% or more too because Pacific Gas and Electric is raising natural Gas prices soon too. This only adds to the pain of people trying to get enough food to live and to stay warm and to pay rent in California for example.
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