Very simple, Watson. Huge number of people, baby boomers, are retiring. They are still consuming. Nobody is here to replace them all. So businesses are starved of workers to satisfy all the demand available. This increases wages and prices. Many businesses use this occasion, and increase prices even more than growth of their expenses, this is called greed inflation. To control the prices central banks are trying to starve businesses of capital, increasing the cost of borrowing. Since this story is still developing, nobody can exclude the huge implosion at the end of it.
When politicians and the economists who serve them boast that the unemployment rate is low, what they are really bragging about is that the crisis under their rule is great and will continue to get bigger. Low unemployment is at the root of all our trouble.
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