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142 sats \ 10 replies \ @Coinsreporter OP 12 Aug \ parent \ on: Tariffs are generating inflation? econ
According to FT, inflation is not already up because the impact of tarrifs is not yet realised in full potential. It also suggests that the tarrifs won't bring much change because the foreign producers will start selling at lower prices to the US, like in the case of Japan's car makers already doing.
I completely agree that tarrifs or any other import duty is bad. TBH, the world needs to understand that it's become much smaller now.
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21 sats \ 0 replies \ @Undisciplined 12 Aug
foreign producers will start selling at lower prices to the US
Exactly. This is what some of us have been saying the whole time. Price elasticity is greater for the exporters because the US is a larger share of their business than they are of the US, and the US can ramp up domestic production in most cases.
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0 sats \ 8 replies \ @optimism 12 Aug
the world needs to understand that it's become much smaller now.
What do you mean?
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121 sats \ 7 replies \ @Coinsreporter OP 12 Aug
I mean tradewise. Example- If US puts tarrifs on one country, it'll still sell to the US via another country. Also, I think the world needs to implement (at some point) global prices for everything.
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120 sats \ 4 replies \ @Undisciplined 12 Aug
Prices are emergent. If you want globally smooth prices, you just have to knock down trade barriers and let arbitrage do its thing.
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142 sats \ 3 replies \ @Coinsreporter OP 12 Aug
I know it's pretty ambitious to even think about it with the nasty boundaries of all kinds set in between. Still, if somehow the world does it, that will see the rise of a new world, a peaceful, better and beautiful Earth.
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100 sats \ 0 replies \ @Undisciplined 12 Aug
Short-term, I think we're in for nastier boundaries, but long-term I expect freer movement of goods and people.
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20 sats \ 1 reply \ @optimism 12 Aug
In Minecraft, one can arbitrage regardless of borders. It can be risky, you'll run into all kinds of ghouls, but the profit can certainly scale to make the risk worth it.
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100 sats \ 0 replies \ @Coinsreporter OP 12 Aug
Are you talking about the game? If yes, sorry I don't play any games. But yeah, I get your point. And I believe people do it, they do it even if it is deemed illegal or smuggling.
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21 sats \ 1 reply \ @optimism 12 Aug
Ah! Yes. Also in terms of travel-safety. I've skipped a bunch of conferences that would have been nice to go to but decided not worth the risk dealing with the increasing border aggression.
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100 sats \ 0 replies \ @Coinsreporter OP 12 Aug
Yes definitely. It's one among so many drawbacks of creating such boundries. The world was better without passports. Now there's a complete disparity which could be avoided by letting people move and settle without any restrictions. After all America what we now call is "Dream Destination" was actually filled up by the migrants. If we were living under the same old ruless at present, I have no doubt that the prices for goods and services weren't as high as they are now.
Whenever I compare the inflation in US to that of India, I'm always astonished. Even the bread costs ten times more in the US than it costs in India.
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