CNBC: Deutsche Bank warns of global ‘time bomb’ coming due to rising inflation
* In an out-of-consensus forecast, Deutsche Bank is warning of a potential crisis coming from inflation.
* “The effects could be devastating, particularly for the most vulnerable in society,” the firm’s economists said.
* Most on Wall Street and at the Fed see inflation is a temporary problem that will ebb as special factors fade away.
Inflation may look like a problem that will go away, but is more likely to persist and lead to a crisis in the years ahead, according to a warning from Deutsche Bank economists.
In a forecast that is well outside the consensus from policymakers and Wall Street, Deutsche issued a dire warning that focusing on stimulus while dismissing inflation fears will prove to be a mistake if not in the near term then in 2023 and beyond.
The analysis especially points the finger at the Federal Reserve and its new framework in which it will tolerate higher inflation for the sake of a full and inclusive recovery.
The firm contends that the Fed’s intention not to tighten policy until inflation shows a sustained rise will have dire impacts.
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Update: Deutsche Bank issues dire economic warning for America (The Hill)
WNU Editor: Deutsche Welle is not sugar-coating their warning. They believe inflation will continue to accelerate, and will lead to a major crisis in a few years.
1 comment:
1) Government Mismanagement'
2) Growing population
3) Population desiring a higher standard of living.
The government papers over a lot of mistakes for over a decade by lowering interest rates and printing money instead of liberals telling their constituents to work. Chickens coming home to roost.
Telling Westerners to no have kids or one kid since the 1960s, while allowing unlimited immigration form other areas does not lower the population in the West, nor the world. it does not lessen the the population to resources quotient.
Telling people to do with less does not work, if you are piss ant like Obama, who has two oceanfront mansions by two different oceans. Obamas has one big carbon foot print. No make that one big carbon ass print.
How much carbon does Obama's butt make, when he jets 4 or 5 thousand miles from Martha's Vinyard to Hawaii?
One bigger than even AL Gore.
Do not put it past elites like Obama to live high on the hog while telling everyone else to live in 1,000 square foot or smaller apartments in sky scrapers. Also do not put it past them to outright euthanize or kill people to lessen demand on resources.
The only way to lower inflation is to produce more efficiently with cheap energy and also to govern conservatively. All else leads to war or ruin.
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