Open the gate.. welcome to this dimension..
So, as usual, the IMF's advice to 'policy makers' now is to up, and up, interest rates until the "people's pips squeak" and inflation comes down..
You see it's not rocket science how this works - when you don't/can't deal with supply, don't want to/can't deal with the fact that corporates are at record high profit margins, and raking in even more now by pushing prices well beyond actual inflation in supply/costs then you're left with one target. Demand. Demand is you and me.
So by advocating that central banks triple the cost of borrowing (let's say, in Australia, from 0.1-3.0%) in a single year you'll 'hammer the stuffing' out of demand. And that's the goal, take demand away by increasing borrowing costs to the plebs so they got less money in their pockets to spend.
Granted, the alternative is to 'inflate' away the money in your pocket (last years $100 is already only 'worth' $94 today..).
So the plebs are left with two choices (and these are the historical two choices which plebs, slaves, workers or whatever you want to call them, get) - you 1) get fucked over, or 2) you get fucked over.. :-P
The really disgusting thing about this is, that while this is happening, the elites, and their press mouth pieces, are already back to pre COVID 'form', advocating for wage restraint, reduced government spending, and reduced taxes on business.. All while statistics tell us that corporate profits are the highest they've ever been, and rising. Business can honestly say "it's been a very good crises for us thank you very much"..
Michael Pascoe also alludes to these obvious issues in his piece today (ref. in comments)
buggered if I know 😛
IMF downgrades 'gloomy' economy as inflation and rate jitters continue, but ASX trades up