Lack of agricultural raw materials and supplies, energy shortages and housing shortages. A whole generation of “entitled” Westerners will learn what it means to live in poor conditions where there is a lack of most things, warns the world’s largest fund manager Blackrock.
Chairman Rob Kapito says that dramatic inflation will be so high that major effects are to be expected in the real economy. An entire generation will therefore be forced to learn what it means to suffer from a lack of most things.
– For the first time, this generation will go into a store and not be able to buy what it wants. And it’s about a generation that’s not used to making sacrifices.
Kapito made the statement at a conference for investors in Texas, where he also said that the market is preparing for a kind of “shortage inflation” where prices are rising due to lack of housing, labor and inputs for agriculture, and in some areas even oil.
In Sweden, the situation is particularly serious because the country’s self-sufficiency in food is low and the war in Ukraine is driving up prices of imported goods sharply. In the meat industry, production has become SEK 3.5 billion more expensive in the past year, new figures from LRF show.
Emma Frödå, agricultural expert at Danske Bank, tells Dagens Industri that Sweden is dependent on importing inputs for its own agriculture that are not visible in the figures on the degree of self-sufficiency.
– It is above all about diesel. Without our import of fuel, we are back on horseback and carriage, she tells the newspaper.
In other ways, however, the situation is worse in the United States. US inflation is ahead of Swedish inflation and was as high as 7.9 percent in February.
– It’s time to fasten the seat belt for something like this we have never seen before, says Rob Kapito.
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