The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Stagflation

Anything related to investing, including crypto

Speculatooor

Bronze Contributor
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
249%
Jul 11, 2019
152
378
Netherlands

Hey Fastlaners​


I think stagflation is on the horizon. I already saw a thread about hyperinflation and wanted to share this perspective.


Causes, according to wikipedia[edit]​

- Economists offer two principal explanations for why stagflation occurs. First, stagflation can result when the economy faces a supply shock, such as a rapid increase in the price of oil. An unfavorable situation like that tends to raise prices at the same time as it slows economic growth by making production more costly and less profitable.[7][8][9][10]

Suez-canal blockage anyone?

- Second, the government can cause stagflation if it creates policies that harm industry while growing the money supply too quickly. These two things would probably have to occur simultaneously because policies that slow economic growth do not usually cause inflation, and policies that cause inflation do not usually slow economic growth.[citation needed]

Lockdowns anyone?

Both explanations are offered in analyses of the 1970s stagflation in the West. It began with a huge rise in oil prices, but then continued as central banks used excessively stimulative monetary policy to counteract the resulting recession, causing a price/wage spiral.[11]



The main question is, how to make a profit from this?

Curious about your perspectives
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

EternalStudent

Bronze Contributor
Read Rat-Race Escape!
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
183%
Apr 4, 2020
76
139
Australia

Hey Fastlaners​


I think stagflation is on the horizon. I already saw a thread about hyperinflation and wanted to share this perspective.


Causes, according to wikipedia[edit]​

- Economists offer two principal explanations for why stagflation occurs. First, stagflation can result when the economy faces a supply shock, such as a rapid increase in the price of oil. An unfavorable situation like that tends to raise prices at the same time as it slows economic growth by making production more costly and less profitable.[7][8][9][10]

Suez-canal blockage anyone?

- Second, the government can cause stagflation if it creates policies that harm industry while growing the money supply too quickly. These two things would probably have to occur simultaneously because policies that slow economic growth do not usually cause inflation, and policies that cause inflation do not usually slow economic growth.[citation needed]

Lockdowns anyone?

Both explanations are offered in analyses of the 1970s stagflation in the West. It began with a huge rise in oil prices, but then continued as central banks used excessively stimulative monetary policy to counteract the resulting recession, causing a price/wage spiral.[11]



The main question is, how to make a profit from this?

Curious about your perspectives
There is no supply shortage. The issue is demand. Factories are nowhere near 100% output capacity. Wage/price spirals are not really a concern anymore as any increase to wages just incentivises companies to invest more in automation, which weakens demand for workers.

imo the future is in robotics automation. It will bring manufacturing back to US/AU/UK soil when it can compete on price with china, not to mention the supply chain risk issues it addresses. Its not far off. Look at the charts for Solar prices. Robots will follow a similar curve.

If you have a spare hour i recommend listening to this podcast episode where economists interview an Entrepreneur who started a solar company that uses robotics automation here in Australia. Incredibly exciting stuff.
 

WJK

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
256%
Oct 9, 2017
3,115
7,961
Alaska
We did the stagflation around 1980. Interest rates on mortgages went from around 12% to 21% or 22% almost overnight. And the economy came to a total screeching halt -- especially the runaway inflation.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top