The World Economy Is Suddenly Running Low on Everything

[bucolic_frolic]

4. QE overcapacity, boom, bust, resupply

Financial journalists post-Great Recession kept telling us that economists were saying "distortions" were being made in the economy. Without exception, they left it at that, I never saw an explanation of what they meant. About 2016-17, a few leaks emerged that low interest rates and the flooding of money into the economy was robbing from our future. Business creation and consumption was far in excess of what would ordinarily be expected, absent lowest interest rates ever.

Que pandemic. Panic, shutdowns, home confinement, low consumption, low production. Yes we used up inventories at the same time households and home gigs chewed up on-hand supplies, and liquidated excesses. So we emerge from Pandemic in a low inventory state. Yes it will continue into 2022, about a year, until everyone figures out that larders are full, and we're underconsuming again.

I expect full speed ahead until we hit a brick wall.