Yesterday I discussed how inflation and deflation occur at the same time in our world. Due to money printing on one side and technology pushing costs down on the other.
It is not that simple though, nothing on a scale like this can ever be simple. There are many dynamics at play. Right now we have one that people are talking about but I don’t think fully understanding.
Supply shortages, even without direct inflation simple supply and demand says, if you have less items than people want the cost of them will go up. We have a lot of this going on right now and it is made up of two main categories.
1. Items that are actually physically short in supply, like some grain crops due to over selling and bad harvests.
2. Logistical caused shortages due to low labor participation and government/pandemic induced restrictions on movement, work and proving supplemental income
Add to this a harh reality a lot of “material shortages” that are compounded by labor shortages, are based on forecasts that are simply not true. We are going to call these “phantom orders” and when I explain it, it will make a lot of sense.
- The Price of Tomorrow: Why Deflation Is the Key to an Abundant Future by Jeff Booth – https://amzn.to/3nrOika
- Flag Featured in this video is here – https://amzn.to/36wGHXK
- Microphone I use – https://amzn.to/3AXdS4C