US trade (vecteezy photo)
Rob Capito, president of BlackRock, the world’s largest investment firm that manages assets worth more than $ 10 trillion, said tonight at a conference of the Independent Producers Association in Texas that the global economy (Capito meant the American economy but it also has similar and even more severe symptoms) Phase to economy of scarcity.
“For the first time this generation is going to go into a store without being able to buy what it wants. We have a privileged generation that is never required to sacrifice,” Capito said as he targeted inflation raging in the US and dragging inflation around the world with it.
More in-
Capito explained that food prices have risen sharply around the world as Russia’s invasion of Ukraine disrupts shipments from countries responsible for supplying a quarter of global grain consumption. “This rise in prices is disrupting the life of the middle class but is devastating to the members of the lower socio-economic class who are trying to escape poverty. The implication for this class is a deterioration to scarcity and hunger,” Capito said.
Rising food prices, energy and supply chain disruptions, which have not returned to normal since the outbreak of the Corona crisis in 2020, could cause middle-class people to reduce their purchases of leisure products (restaurants, movies and shows) – a difficult and painful but not destructive process. People will have to cut back on basic food purchases due to this price increase, we are already talking about a different kind of world – more dangerous, more angry and much more explosive.
Here it is worth noting that inflation, which is the root of all evil in the world economy, is in the US at an alarming level of 7.9% (annually) while in Israel inflation is already climbing (according to bond market expectations) to 4% per year. The rate of price increase which inevitably leads to a decrease in private consumption and is destructive to the lower socio-economic strata.
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