Why would consumption spike in the last few months? Anyway, the only growth sector in our economy is AI and AI-related services like data centers, which is a completely unsustainable bubble with no revenue generation in sight. Everything else is laying people off, even tech, which was the only boom sector in the 2010s. Meanwhile, our president's attention remains focused on a waterway in the Middle East. So yeah, we are in for it.
BRICS went back to the gold standard and the petro-yuan is poised to unseat the petrodollar. Anyway, more student loans for graduate degrees in Grievance Studies! It's okay, vote for politicians promising loan forgiveness!
Why would consumption spike in the last few months?
It's nominal, so not adjusted for inflation. You're paying more for the same amount of goods. It's the same shit when you hear politicians spout "record-breaking revenue" or "all time highs".
If you buy the same amount of goods, but the price went up 10, 15, 20% (or more in some cases), well, consumption "spikes" 10, 15, 20%... Not even counting the fact portions are smaller now as well.
Energy, especially diesel, touches everything in the economy. You might get a reprieve on some items like TVs or clothing, but perishable goods like food will feel the pain instantly.
Inflation's also a self-fulfilling prophecy. When people see prices climbing, they'll try to frontload their purchases and hoard in bulk to avoid the next price hike. Demand goes up, supply goes down, prices go up, and on and on.
The last few months every, "maybe we'll get that," purchase has been getting made, and bills are being pushed onto credit cards. That's not what they see, though.
Why would consumption spike in the last few months? Anyway, the only growth sector in our economy is AI and AI-related services like data centers, which is a completely unsustainable bubble with no revenue generation in sight. Everything else is laying people off, even tech, which was the only boom sector in the 2010s. Meanwhile, our president's attention remains focused on a waterway in the Middle East. So yeah, we are in for it.
The entire economy is relying on several interconnected bubbles supported by tax dollars.
It'll be fine
BRICS went back to the gold standard and the petro-yuan is poised to unseat the petrodollar. Anyway, more student loans for graduate degrees in Grievance Studies! It's okay, vote for politicians promising loan forgiveness!
It's nominal, so not adjusted for inflation. You're paying more for the same amount of goods. It's the same shit when you hear politicians spout "record-breaking revenue" or "all time highs".
All I hear is "the dollar is collapsing".
^this is correct.
If you buy the same amount of goods, but the price went up 10, 15, 20% (or more in some cases), well, consumption "spikes" 10, 15, 20%... Not even counting the fact portions are smaller now as well.
So energy price inflation has been that disruptive?
Energy, especially diesel, touches everything in the economy. You might get a reprieve on some items like TVs or clothing, but perishable goods like food will feel the pain instantly.
Inflation's also a self-fulfilling prophecy. When people see prices climbing, they'll try to frontload their purchases and hoard in bulk to avoid the next price hike. Demand goes up, supply goes down, prices go up, and on and on.
Energy costs rising sharply due to Israel's wars and AI datacenters sucking the grid dry.
The last few months every, "maybe we'll get that," purchase has been getting made, and bills are being pushed onto credit cards. That's not what they see, though.