Appearing on Face the Nation (FtN) Goldman Sachs CEO Lloyd Blankfein discussed his views and perspectives on the economy overall and U.S. inflation specifically. Undoubtedly Blankfein has access to resources and analysis far beyond CTH scope; however, despite a statistically factual contracting GDP, Blankfein is claiming to see overall demand side inflation remaining in the macro economy.
Perhaps that view might still be true domestically on the service side (it certainly isn’t on the trade side), but demand driven inflation does not appear visible on the goods side of the economic ledger. What is clearly present as the price driver is “production side inflation,” the costs to create goods and bring them to market. If you look at economic activity in units instead of dollars, the units are contracting.
The demand for goods is now focused almost entirely on priority or essential purchases like housing, energy, fuel and food. The price for those essential products is driven by production costs, which are a direct outcome of the energy policy, environmental policy, regulatory policy, and to a lesser extent trade policy, of the Biden administration. Blankfein is pretending not to know things…link