- Thanks to the rollout of coronavirus vaccines, the global economy is slowly starting to emerge from the Covid-19 pandemic.
- But the pandemic has left one very destructive issue in its wake: disruption to global supply chains.
- The rapid spread of the virus in 2020 prompted shutdowns of industries around the world.
…So, we are looking at both deflation and inflation in China, vs. just inflation everywhere else. Moreover, we are back to extensive vs. intensive growth, which Wall Street no longer understands; just as it now fails to grasp Schumpeter; just as it utterly fails to read Marx. Don’t let that all stop the Street, or Chinese markets, perpetually pricing in bailouts and hockey sticks and “transitory” and Xmas every day, however. It’s all a generation of traders have known both East and West, so who can blame them? The problem is no central bank can bail out the physical economy from shortages.
To wrap up, Aussie jobs data showed a -138K print, yet where unemployment went down to 4.6%, and only part-time jobs were apparently lost, not full-time. Extensive or intensive takes on such partial data are not really worth too much of anyone’s time. They certainly won’t be moving the RBA from not moving.
Food & Drink Federation chief Ian Wright tells MPs hospitality inflation is running at 14-18%, which is “terrifying”, says it is a precursor to retail, relays story from the 70s of supermarket prices rising twice in a day… says we can’t go back to that… pic.twitter.com/13CvdNt2nF
— Faisal Islam (@faisalislam) October 19, 2021