Bob Fraser says the real cause of post-COVID inflation wasn't supply chains but an energy shortage that built up during lockdowns. When demand came back, energy couldn't keep pace. Ukraine made it worse, but the problem was predictable and mostly ignored.
people attributed inflation to the supply chain problem with COVID right? And, and there was, it wasn't, but, but underneath was this sneaky inflation driven by energy that no one foresaw. And so, and so, so we have this massive energy shortage that's, that's working through the system and it, it wasn't exposed during the low demand years of COVID Right. And as soon as we exit from COVID all of a sudden demand, oh, you know, we, it, it all of a sudden it surfaces, the shortage surfaces because there's not enough, not enough energy supply. Right. And then shock, shocks, Ukraine. And now it's, it's a, it's a, you know, holy smokes moment. Like what's going on? Right. And so it's this very sneaky, you know, energy is what no one was counting on and no one saw it coming, but it was very predictable.
