Economic Expectations

Normative

Analyst, central bankers , governments all tried to calm everyone down in this financial and commodities turmolt. Actually, the future may seem even worse than everyone can see.

Of course there will be panic (the herd mentality) if they do not calm them down. But if China continues to have price control and other countries limit exports of food because they have to save themselves first. This problem will create a huge disequilibrium. There will be social unrest which the news are reporting nowadays. When people do that, the problem becomes worse as productivity will dip.

The worse is that the poor will be the one that will suffer the most.

In inflationary times, the poor gets poorer and in economic expansion times, the rich gets richer.