GLOBAL RESOURCES ANALYSIS


EFFECTS | PROSPERITY HEADWIND


It's not hard to understand that the by increasing energy caused higher prices for products and services (and even food) certainly will lead to less prosperity, just because these price rises will not be covered by economic growth, but even opposite certainly will be guided by economic crimp. No other conclusion of the effects of rising product prices is possible in the current on stable level staying, not equal rising incomes/economies. This will certainly lead to higher prices by higher energy/element prices and less income caused by economic crimp caused by the higher prices. It is not money creating inflation, so economies will be confronted by double inflation causes and therefore figures. High prices for energy/elements are nature's own tax, leaving governments behind in prosperity declining influence. Inflating will give higher interest rates -otherwise nobody will provide capital- and once again a major price rise (on cost of mortgages) for everyone. In resources deficit countries prosperity will decline by higher rising prices than economic growth and by that caused economic decline. In resources deficit countries prosperity can grow regardless their equal confrontation with higher prices, but their economies will grow and that will adapt a lot of the negative influence of prices rises caused by higher energy/element prices.


Author: Gijs Graafland


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