What to start worrying about next after Covid disappears

Both from Drudge at one and the same time.

Do deficits matter anymore? Biden’s first budget signals they don’t…

And then this at the very same time.

Biden pledges to tackle supply shortages as prices rise…

Let me note that it takes a year or so for price increases to catch fire since consumer demand stays mostly the same while investment, and massive increases in public spending in general, are diverted into useless unproductive channels. Eventually, however, the flow of money expenditure begins to grow more rapidly than the flow of actual goods and services to buy.

Seen the price of houses lately?

This entry was posted in Economics and economy, Economics on the left. Bookmark the permalink.

18 Responses to What to start worrying about next after Covid disappears

  1. H B Bear says:

    Never underestimate the role of expectations when it comes to inflation. I expect a lot of lessons have been forgotten or never learned for anyone with less than 30 years experience under their belt.

  2. Whalehunt Fun says:

    Biden is a true cretin. You cannot tax the wealthy. They just move away and ignore your ignorant ar rs.

  3. Fair Shake says:

    I admit it, I am a slow learner. But as you get older you realise others whilst more confident are much slower at learning. Printing vast quantities of $ and racking up huge government debt to spend on welfare is not a great strategy for any economy. Our leaders are very confident but we are steering for a fall. So far we have been the extremely lucky country. But how long can it last…?

  4. Fair Shake says:

    Biden may be a cretin but the US tech and corporate elites supported and embraced a tax increase to get Trump out. Cos losing market power would be worse.

  5. Waz says:

    You just need to see the length of queues for container ships to berth at Long Beach to realise that inflation is going to get scary in the US. Consumers have lots of cash to spend (from government printed money), but the good old US cannot produce the goods to supply the demand. The supply issue is both of a product of covid-degraded industrial capacity combined with labour shortages creating by government increased social security payments competing with wages. Turns out ordinary folk know all about the way incentives work.

  6. Colonel Crispin Berka says:

    Seen the price of houses lately?

    Did Kates read the International Housing Affordability Survey at any time in the last 20 years?

    Australian houses are so unaffordable we’re routinely ranked second last – only ahead of the peninsula of Hong Kong. Let that sink in.

  7. Snotball says:

    Once the money is really used up and gone people will realise that the jig is up! Nothing left in the larder so what will we do? Maybe elect a Conservative government that might turn this around? Then when things are back on an even keel turf them out so we can once again enjoy the free stuff they provided! Fuck we are stupid!

  8. Steve says:

    But lockdowns are here…forever….

    https://canadafreepress.com/article/the-government-plan-is-for-lockdowns-to-last-forever

    “The key conclusion follows:

    ““Every country should apply non-pharmaceutical measures systematically and rigorously at the scale the epidemiological situation requires, with an explicit evidence-based strategy agreed at the highest level of government…”

    ““In case you do not know by now, this is a euphemism for lockdown.”

    and :

    The bottom line?

    ““Without such counterpressure from intellectuals and the public, make no mistake. They will try it again. And again, promising next time to do a better job of it. And never admit error.” (RealClear Markets

  9. FlyingPigs says:

    Borrow and Spend to your heart’s content because ‘The Great Re-set’ is baked in.

  10. Professor Fred Lenin says:

    What happens when the intrest repayments consume moreand more of revenue .
    You borrow to pay the intrest on the money you borrowed to pay the intrest on the money you borrowed and so on ?

  11. FlyingPigs says:

    Professor Fred Lenin says:
    May 29, 2021 at 9:16 pm

    doesn’t happen that way after ‘The Great Re-set’.

  12. Timothy Neilson says:

    You borrow to pay the intrest on the money you borrowed to pay the intrest on the money you borrowed and so on ?

    It happened in Victoria under Cain/Kirner.
    Kennett got it under control by privatising electricity etc.
    But you can do that only once. Victoria doesn’t have anything left to sell. We’re fucked.

  13. m0nty says:

    Where was this gnashing of teeth about deficits under the former guy? Oh yeah, he made Kates feel all wibbly inside.

  14. Rex Anger says:

    Where was this gnashing of teeth about deficits under the former guy?

    What deficits, fucko?

  15. FlyingPigs says:

    Victoria doesn’t have anything left to sell.

    Melbourne doesn’t have anything to sell.

    That part of Australia called Victoria and outside Melbourne has enormous riches to sell.

    Melbourne is run by a crooked mob pushing a Sovereign ponzi scheme.

    It is why I say all capital cities should be declared City States and let the rest be The State of Australia with ZERO income tax.

  16. Speedbox says:

    Colonel Crispin Berka says:
    May 29, 2021 at 6:02 pm

    I don’t want to start a debate about the reasons but I agree with your comment. How the fvck can Australia have house prices so high? Only 25m people in a country nearly as big as the continental USA.

    Yes, yes a goodly part is inhospitable, but Jesus on a bike, buying a house used to be a realistic option for most, even if they didn’t. Now, 34% of the population rent and for the most part, most of those have virtually no hope of home ownership. We now mirror British and US home ownership rates.

    With the massive price hikes of property in the last couple of years, I can’t see the overall home ownership rate improving anytime soon.

  17. Speedbox:

    Yes, yes a goodly part is inhospitable, but Jesus on a bike, buying a house used to be a realistic option for most, even if they didn’t.

    Even inhospitable places can be made livable – Nevada has Las Vegas, Reno.
    All it takes is the political will to do so.
    This is what Australia lacks.

  18. Timothy Neilson says:

    Even inhospitable places can be made livable – Nevada has Las Vegas, Reno.
    All it takes is the political will to do so.
    This is what Australia lacks.

    We don’t just lack it, there’s a positive will NOT to do it.
    There was a government report that said turning the north west of WA into a productive agricultural region can’t be done because there isn’t enough water.
    It was pointed out that the rainfall there is plenty enough for agriculture.
    The proponents of the report countered by saying that the rain fell at the wrong times.
    It was pointed out that that could be solved with dams and irrigation.
    The proponents of the report replied that it was against government policy to build dams.
    So “against government policy” = “can’t be done”. QED

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.