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It’s Not Just High Gas Prices – Inflation Is Now Spreading Through the US Economy | naked capitalism
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It’s Not Just High Gas Prices – Inflation Is Now Spreading Through the US Economy | naked capitalism

naked capitalism·Yves Smith·3 days ago
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Yves here. While this article makes some useful observations, it also serves as yet another reminder of the blinkered view most analysts and commentators are talking to the accelerating Strait of Hormuz supply shock. Too many are still seeing it as primarily an energy price shock. First, as commodities maven Jeff Currie has stressed, oil and gas may be less important energy sources relative to GDP than in the 1970s, but their overall importance is much more important due to how many other petroleum-derived products are essential to the economy. We won’t see the full effect on food costs start to kick in until harvest time. And even then, as with oil, there are some large grain reserves, so that will blunt the front end of that supply loss.…

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