Bob Fraser from Aspen Funds argues that US inflation at 7.5% is largely an American problem, while Asia sees half that rate and Europe sees almost none. He attributes it to stimulus and COVID factors, splitting inflation into temporary supply-chain issues and persistent strong consumer demand.
So we've seen pretty high inflation prints around 7.5% annualized inflation, which is fairly high. Certainly historically, that is quite high for America. It's driven— well, I think it's important to say, first off, it is virtually an entirely US phenomenon. So we are seeing about half these levels of inflation in Asia and pretty much not any inflation in Europe. So it's a U.S. phenomenon and it's pretty much entirely stimulus-driven. It's stimulus-driven and COVID-driven. Let me, let me say that. So there's several components to inflation and there's some of these components are both transitional. So they're transitory, rather. So they're going to dissipate, but some are going to be a little bit more persistent. The transitional. So of the components you have, You have the supply chain disruption. And we think that's going to be kind of solved this year and maybe into next year. You have the— one of the big components is demand.
