Fuel shortages from prolonged strait closure would create deflationary pressure in some sectors despite overall stagflationary effects because market participants desperate for cash would sell off assets at fire sale prices (as seen in Thailand truck driver example of strawberries sold at discount when diesel was unavailable), creating a situation where CPI doesn't capture the economic dysfunction.
causalpending
Speaker
Michael EveryEvidence Quote
“the CPI doesn't change but no one can move anything... things absolutely grind to a hole which ironically in some instances can be deflationary because people are going to be desperate for cash”
Created: 8/12/2026, 5:52:35 PM
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