5 Nov 2021

Source: Coinbase

I am reading about all the inflation in the system. In Australia fruit pickers are being assured of $25 per hour minimums due to the lack of supply. This is a market where backpackers are happy to accept $10 an hour so they can work and travel in a chilled setting. I might add Australia in the summer is not chilled. I am also seeing tons of adverts on LinkedIn and in the papers looking for staff. This is causing wage inflation for sure. However before we get carried away with this scenario let us take stock.

The US job market is still 5 million jobs less than what was employed prior to Feb 2020. So lots of jobs have disappeared and lots of people have dropped out of the job market because of government grants and success in the markets.

I was quite surprised to see that 4% of the labour force in the USA have quit their jobs because of crytpo gains, with most reporting profits of less than $50k. Speaking of crypto Beta shares just listed their most successful ETF on the ASX the Crypto Innovators ETF.

Coming back to my stagflation scenario. I am still very weary of the Chinese markets. There is no bottom in site as we continue to receive anxious news from China. I cannot see hyper inflation in a world with a slowing Chinese economy.

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