What will governments do when inflation surges With massive infrastructure spending, we can expect an equally significant increase in engineering work and higher hourly rates (supply and demand), both of which will multiply to increase profits substantially. A positive to SNC internal (employees) and external shareholders
Inflation will surge and central banks will not increase rates to control it because interest on ballooning government debt will be prohibitive.
Central Banks do not want Governments to default like Greece, so they will let money devaluate and inflation will accelerate. We are heading to a new chapter of Keynesian economics. The title is "Inflation Management by Central Banks".
Practical application:
1. Debt (and cash) will devaluate.
2. Asset values will increase.
3. Profits will go up.
4. Stocks with decent profits will go up like Tesla shares.
That's not good for shorts.