Even United States cannot sustain all those stimulus (trillions) without consequences
It's not just that, if they would have simply injected those trillions two years ago the effects would have not been that bad.
But right now you've just gone through a pandemic, a lot of the industry was shut down, logistic chains are messed up and until everything is restored production is not yet at full throttle, if we look just at the car manufacturing industry you will see how it was impacted by different shortages, not just chips but with a lot of components. You can't have factories with millions of workers that were producing clothes for half of the globe shut down for 3 months and then suddenly everything back to normal. To make things worse when the quarantine was lifted there were little to no orders from the western world as they didn't anticipate the return to normal would be that soon.
One of those clear examples is wood, nobody expected that construction will resume at that pace, nobody could have made stocks of it, and even if they could have done they thought they will not sell even the inventory they had when the quarantine hit their business, now they simply can't keep up with demand.
On top of all that, what would be the worse action to take, just looking from the inflation point of view?
Print more money, creating an inflated demand for goods while the offer is not there, more money to spend than usual when there is less tan can be bought than in a normal year, of course, prices will go up for every single damn thing, it's a normal consequence everyone should have taken as granted.
This has a huge impact on interest rates all over the world!
Yeah, because as I always said, when the US makes a wrong turn we all over the world end up with a broken neck.
They are printing trillions, it's normal they will artificially offset all balances and then everyone on this path will suffer the consequences, some will be hit worse some will manage to slip through if they are smart enough and they can cut all connections but this will never work with large countries, smaller ones might do it, we in the EU will get the short straw as always.
One good part is that some of this inflation is being fueled by those gaps between production and demand, it will not and it can't continue at this pace but it will take some time till things settle. The other part, that is generated by printing money will of course not slow down and it will only be amplified by future money printing, as there will be more, I'm pretty sure of it.
