alt Hacker NewsIt's impressive that somehow, as if by coincidence, we're seeing the biggest inflationary drivers for decades, perhaps for centuries, all happening simultaneously.
The Iran war is spiking the price of oil and will likely cause shortages of pretty much everything if it isn't ended.
The Ukraine war is helping with that by destroying Russian refining capacity.
The memory shortage is set to do the same to consumer electronics, which are absolutely essential to the modern economy.
Meanwhile the AI fad is seeing huge layoffs. At the same time as the AI Big Cos are beginning to show signs of ending the subsidised free lunch phase and moving to a utility model, which will raise prices for every company that is hooked on AI.
Also tariffs. Although I'm not sure if anyone knows what's happening there.
And farms are failing. Climate change will accelerate that, so there will be food shortages within a few years.
If it's not cynical and deliberate, it's an astounding confluence of (literally) catastrophic mismanagement.
Replies
William Gibson coined the term "The Jackpot" to describe an apocalypse made up of many different disasters all happening near in time, overwhelming civilization. Pandemic, war, mismanagement, corruption, resource scarcity, climate breakdown, ...
It would be a great scapegoat for further monetary expansion related inflation.
Step 1) Instigate price increases for temporary reasons, leading to noticeable price increases.
Step 2) As temporary reasons go away, increase money supply. Prices stay the same, you get to blame the causes from step (1) while not mentioning that the prices could have gone down when the problem went away, or blaming greedy companies for not lowering the prices.
Destruction of russian refineries should increase proposition of crude oil on the market and drive price down a bit.
> And farms are failing. Climate change will accelerate that, so there will be food shortages within a few years.
This is the key one to watch out for. Prior food-based conflicts have sparked revolutions and civil wars. People can tolerate not having electricity, people can tolerate not having internet, people can tolerate not having gas.
But a lack of food, due to a wheat shortage which in turn was sparked by Siberian wildfires destroying a whole year's wheat crop in Russia, precipitated the Arab Spring and the subsequent civil wars, as well as the ascendancy of ISIS.
And AI causing electricity infrastructure price rises for domestic consumers - aka forced indirect investment in AI companies.
Oops, sorry, wrongthink, I mean "due to the war in the Middle East", even though a large majority of gas in the UK comes from elsewhere (gas and electricity prices in the UK are supposedly very tightly coupled ?)
US tariffs are mostly dead. Ruled illegal and being refunded. Second attempt at tariffs has also been stopped. And inflation over the past 5 years is still milder than the late 70s and definitely milder than what has been seen in Turkey or Argentina or Zimbabwe.
> Meanwhile the AI fad is seeing huge layoffs.
This is really the only point I disagree with. Layoffs are being blamed on AI, but they are really a hangover of the covid hiring boom, and subsequent bust.
All the tech money is going into building data centres (and the gas turbines that power data centres), and it turns out that programmers don’t have the relevant skills to build gas turbines.