In order to have a “nice” economy, inflation has to happen . CNN Economic Analyst says

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The New York Times published a new episode of “The Ezra Klein Show” on Friday that included an interview with Rana Forouhar, CNN’s global economic analyst and columnist for the Financial Times. In the interview, Foruhr called for a “kinder” and more environmentally friendly economy, and said inflation must occur in the short term to achieve these goals. He also strongly criticized Forouhar Federal Reserve To create what she described as an “everything bubble” in financial markets.

“What is the cost of something if you already have a real price for carbon, and then you have to calculate the cost of moving it over tens of thousands of miles from the South China Seas? What is the cost if you have the right environment and working standards?” asked Foroohar. “That’s the conversation that’s going on right now. And once you start pricing all these costs, and you really start thinking about the economy in a different way, then, yeah, it’s definitely inflationary.”

She noted that Democrats do not want to acknowledge that inflation may be necessary to transform the economy as the medium term approaches quickly.

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US President Joe Biden announces Federal Reserve Chairman Jerome Powell's nomination for a second four-year term, in the South Courtroom of the Eisenhower Executive Building at the White House in Washington, United States, November 22, 2021.

US President Joe Biden announces Federal Reserve Chairman Jerome Powell’s nomination for a second four-year term, in the South Courtroom of the Eisenhower Executive Building at the White House in Washington, United States, November 22, 2021.
(Reuters/Kevin Lamarck)

“And that’s something I think, unfortunately, that no politician, especially the Democrats, are at the moment Mid-term progress Or a presidential desire to go down, which is some transition to a kinder, gentler economy, and I think a more stable, and ultimately more resilient, economy is going to be inflationary in the short to medium term.”

Forouhar called on the United States and Europe to “put a price on carbon”.

“There is, of course, a great opportunity now for the United States and Europe to come together on climate change benchmarks, and maybe even set a price on carbon, which would immediately kill Chinese mercantilism because it would actually help us calculate the cost from cheap labor, child labor, long supply chains, Which takes a lot of energy to move cheap stuff back to us to put at Walmart or sell on Amazon, all of those things happen.”

She added, “We also have a new generation of consumers, citizens, younger workers, who really care about the environment. They care about food, they care about where they don’t want fast fashion. They understand the cost of these things.”

A CNN analyst predicted that globalization would continue to decline because the “security hawks on the right” wanted “more.” Safe, resilient and independent supply chainsAnd “some of the new green merchants” want “to support employment in America and get jobs.” ”

“So I see a lot of tailwinds and I think in the end, we’re going to have a lot of turbulence, but I think they’re going to take us to a better place. Because we’ve talked about the ‘old system has been unsustainable for the last hour,'” she added.

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Pedestrians pass the New York Stock Exchange, May 5, 2022, in the Manhattan borough of New York.

Pedestrians pass the New York Stock Exchange, May 5, 2022, in the Manhattan borough of New York.
((AP Photo/John Minchillo, File))

Forouhr also criticized the role the Federal Reserve played in contributing to inflation and what she describes as the “everything bubble” in financial markets. Forohar said the Fed was “making things that have no value look like they are so valuable that they are not.”

“Long before COVID, before the financial crisis, housing prices, education, healthcare, all of these things were going up faster than anyone’s paychecks. That’s why not many of us were feeling rich despite all that money deteriorating in the economy,” she said. “The Fed is manipulating the economy, keeping rates low, and keeping borrowing costs low. This enables a lot of debt creation. It allows for higher risk assets that may not even be profitable in many cases or can be quite speculative as in the case of crypto it kind of lets them inflate prices because investors of all kinds are looking for returns. “

Foroohar compared cryptocurrency’s inflation and recent crash to gold during the Weimar Republic.

A graphic showing inflationary measurements

A graphic showing inflationary measurements
(iStock)

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“But if you look at how gold prices rose in the Weimar Republic and compare them to cryptocurrencies until very recently, you will find that they are very similar, boom and bust, and we can see why that happened,” she said.

She criticized elected lawmakers and the Federal Reserve for their market manipulation that benefited Wall Street more than Main Street.

Inflation hit a 40-year high and the stock market entered bearish territory on Friday. Many economists expect a recession in the near future.