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Central bankers should beware of labour shortages (and wage inflation) - FT Editorial


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"The US government, too, wants to shift bargaining power towards workers and increase the relative power of labour compared with capital...ensuring a scarcity of workers relative to jobs is an explicit goal of policy"... 

And that's the interesting aspect here... wage inflation is a policy goal, which will - logically - lead to much higher inflation... if the policy is successful. 

https://www.ft.com/content/b40d77f2-fa02-4c7b-8eee-59cbd0a40e51

Edited by gruffydd
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3 hours ago, gruffydd said:

"The US government, too, wants to shift bargaining power towards workers and increase the relative power of labour compared with capital...ensuring a scarcity of workers relative to jobs is an explicit goal of policy"... 

And that's the interesting aspect here... wage inflation is a policy goal, which will - logically - lead to much higher inflation... if the policy is successful. 

https://www.ft.com/content/b40d77f2-fa02-4c7b-8eee-59cbd0a40e51

It's pretty obvious now that the intention is to inflate away the debt.

Protect yourselves.

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6 minutes ago, Timm said:

It's pretty obvious now that the intention is to inflate away the debt.

Protect yourselves.

Which is dressed up as being good for us... by providing higher wages... hmmmm... the noises coming from the powers that be... from "we are guarding against inflation" to "wage inflation is a policy goal" is rather clear though isn't it... 

Inflation is a policy goal... let the chaos begin. 

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Basically... wage inflation is now an explicit policy goal - both in the UK and the USA... yet apparently we won't see broader inflation and all that comes with it... it is nonsense. 

Basically, wage inflation will be used as a smokescreen as they attempt to inflate away government debt... it won't work - but politicians being politicians, they'll drive the economy into a wall at speed... the crash will mark a decisive pivot point, as the world tilts towards Asia. 

 

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