Six Reasons Inflation is So High

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The war in Ukraine will pour more gasoline on the already raging inflationary fire, threatening to send the global economy into stagflation. Stagflation is a slowdown of economic activity caused by inflation.

I spilled a lot of ink warning that a large portion of the market was playing a “bigger fool” game – investors were buying overvalued stocks and otherwise worthless cryptocurrencies and NFTs, hoping to unload them on bigger fools (I wrote about it in January). Over the last six months the market started to run out of fools. Higher interest rates and inflation returned some rationality to the market. There is a saying on Wall Street: Bear markets return money to its rightful owners. This is what we’ve been experiencing lately.