Many global supply chains are currently broken with lead times deep into 2022.
Companies stopped making stuff and shut down and in turn the companies that supply them
with raw materials and other inputs had shut down as well.
Suddenly as businesses fire-up again, they want supplies today.
So hence the global supply chain crises. People in the real world in procurement are battling with it at the moment.
Apart from shortages of some manufactured goods, this will also see an
increase in prices and an inflationary trend.
The US Fed had originally believed that magically supply chains would
be restored quickly and the economy would bounce back into full swing
due to pent-up savings.
You can have all the pent-up savings you want, but you may not be able
to buy it or you will have to be prepared to pay a premium for it.
Avoid buying a new car this year. Features that were standard prior to the pandemic
on some models are not being provided on this year's models because they can't get
components. Back to mechanical dials and controls rather than touch panels, for example.
The US Fed now acknowledges these problems will “linger well into
next year” so now they have had a change of heart and are preparing
to fight inflation.
Given Australia is no different - we buy the same things - one might well expect
inflationary pressure on prices going into and during 2022.
Whether this results in an increase in interest rates and a bursting of the
Australian property bubble is yet to be seen.
https://www.smh.com.au/business/mark...01-p59don.html
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