Former Ifo President Professor Hans-Werner Sinn discusses inflationary pressures in Germany and Europe and what he views as the ECB’s flawed monetary policy.
ECB’s Lagarde is living in a different movie, former Ifo president says
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The inflation in Europe is high but in the usa it is even higher while in China the consumer price index rises only a fraction of it. The west is clearly in trouble. The inflation is not caused by the consumer spending but by higher supply chain costs and fuel price, and these are magnified by the containment policy by the usa. Bringing higher interest rate will hamper the economic growth and consumer spending and increase the financial debt. The EU and the usa said that they will have to increase the interest rate next year. This will only enhance the negative effect on welfare.
Exactly
On the other hand unemployment ist pretty low, people got way too much financial support and instead of spending their money for entertainment they spend it for products now. So there is a reason for limiting the demand through higher rates instead of higher prices. There is way too much money around.
What Hans-Wener Sinn fails to understand is that Governments have found a new way to drive oil prices and inflation down (other than ECB interest rates): imposing a Dutch-Austria type of Christmas Covid lockdown OR MERELY threatening with a full lockdown…
He confused Billions and Trillions, because of the difference in german and english.
Don’t scare yourselves to death in 2022 America
The US will implode. This time China will not buy its debts anymore.
Very smart arrangement…China does not deliver, all wheels worldwide have to slow down…not only chips…everything.
Payback is hell…first, everything had to be shifted offshore…now we get a taste of it….
And we are trapped. We can not produce in our own countries no more. We do not have the resources, nor the energy. And if we have both, it is too expensive, to survive the market.
But the highest profits are already made. Perhaps for a few more weeks the stock and future market will show astronomical prices, but this will end with a 💥 blast…in some form..
And the games have just begun…