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Trump’s inflation time bomb is about to go off: Nobel economist

alternet.org · 4h · first reportShare

On Thursday, Nobel Prize-winning economist Paul Krugman warned that President Donald Trump has set a ticking inflationary time bomb that is about to explode. According to Krugman, while the very worst of the economic shocks caused by the war with Iran have so far been held at bay, the evidence suggests that is about to change. As Krugman explains , “Trump is not a well man. He is, unfortunately, also President, which means that we all pay a price for his inability to accept reality. Notably, while he insists that he has ‘total control over the Strait of Hormuz,’ shipments of oil through the Strait will remain minimal unless Trump can find a way to smuggle oil out in catering carts — or until he makes a deal with Iran. And we won’t have such a deal until he faces up to the reality that he lost his war of choice. The Hormuz closure means, in turn, that oil prices — which briefly fell most of the way back to prewar levels on hopes that a deal was really coming — will remain high for the f