Strategy of pain

Strategy of pain

February 26, 2023 0 By Michel Santi


Eurozone supercore inflation is at 6.0% and is by no means peaking.

In Japan, inflation increased by 4.4% in January compared to January 2022: strongest annual inflationary surge since 1981!

In the USA, inflation was at 7% for January, and revised upwards for the 4th quarter of 2022.

Very disturbing, these figures show that central banks have made much less progress than expected.

If there is a fundamental lesson to be drawn from previous inflationary cycles, it is that it becomes impossible to eradicate when its embedded in mentalities and in actions without a thorough destruction of demand and of consumption.

Expect the least favorable scenario possible because the only strategy will be the strategy of pain = raising interest rates to levels much higher than expected in order to break the economy, and therefore inflation.