Can you explain how we will have 'hyperinflation' in the US with minimal increases in unit labor cost and basically nil wage inflation? Two thirds of the final costs of all US products and services are determined by wage costs.Quote from mokwit:
That's exactly it. Buffoonke probably thinks if he hikes rates 25BP at a FOMC meeting that will be the end of inflation. The end result will be that Lehman won't be saved anyway, so we will have hyperinflation all for nothing.
As it stands, Europe is closer to an inflationary problem than the US. And they had no rate cuts and Buffoonke has no say there.