ENERGY IS INFLATION
Energy will cause inflation. Huge inflation. As we use energy for everything, everything just will get more expensive. The energy intensive products will rise more than the low energy products, this will of cause lead to a switch in product demand. Manufacturers should know the energy price exposure of their products (as this determines the further market chances of their products as the energy price rises. Why will energy be more expensive? The discovery costs increase, the exploration costs increase, the refining costs increase and the transport costs increase. By this all fossil energy will become more expensive. All these energy facet price rises are part of the cost price. On top of that comes the market mechanism surplus caused by increase of market demand and decline of market supply on the global market. On top of that the current full connection between the global market price and the local market price will be lost as the granting model will be installed on top of the global supply/demand sales system. Some nations just will have bad luck of not being able to buy as many as they like to do. Energy is inflation. Stagflation to be more precisely: higher prices in an economic situation that not grows but declines. Stagflation a the nightmare for everyone: everything gets more expensive and as there is no income rise that covers this, the purchase power of everyone declines. Energy will deliver unfortunately huge stagflation. Energy is Inflation is not a valid statement.
Author: Gijs Graafland
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