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Bernardo de La Paz

(60,320 posts)
47. Economic downturns lead to deflation, not inflation. What we have now is stagflation due to double supply shock
Mon Sep 22, 2025, 03:52 AM
Sep 2025

Supply shock 1: High tariff taxes lead to shortages of food, goods and parts for assembly.

Supply shock 2: Labour supply shock due to deportations and stay-at-homes.

The last big supply shock was the oil embargo of 1973 and to a lesser extent 1979. That lead to extended inflation and little or now growth: stagflation.

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Economic downturns lead to deflation, not inflation. What we have now is stagflation due to double supply shock Bernardo de La Paz Sep 2025 #47
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Global shipping would decline AND would represent an economic decline. Stupid tRump doing it the stupid way Bernardo de La Paz Sep 2025 #46
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