Bob Fraser argues inflation wasn't mainly about supply chains but an energy shortage that stayed hidden during the pandemic. When demand bounced back, the energy deficit surfaced and prices spiked, then Ukraine made it worse. He says it was foreseeable if you looked at the actual numbers.
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.
