ℍ𝕂-𝟞𝟝

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Joined 2 months ago
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Cake day: July 14th, 2024

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  • Just anecdotally, but Hungarian prices went way up above the inflation that the exchange rates changing would justify. There are a few explanations why it happened in Hungary.

    • One is prices are getting “unanchored” and are easier to gouge. Someone used to a loaf of bread costing 400 in local currency will buy one loaf for 1200 as easily as 800. It’s basically nobody knows by habit what the prices are any more.

    • One other explanation goes that the uncertainties of the economy get baked in to the price. So if the bread was made for 200, but is now made for 400, the trader will price based on the assumption the input prices might double again, pushing the risk to the customer.

    • Yet another explanation is that since prices went up, fewer people buy the same goods, so prices must go up again to have businesses stay afloat. So basically there is an inverse economies of scale effect happening.

    • Finally, in these countries it happens very frequently that parallel economies emerge, and societal divides widen. Point is, there is a group of people who get paid by foreign companies in foreign currency, and they earn much better than most that have been affected by inflation, and more and more of the economy is targeting them exclusively.

    IDK really, as on the one hand I’m not an economist, only pointing it out that this is not the only place and time this happened.











  • The thing that Trump wanted last time he was around was for everyone to buy more weapons, because he thought it unfair that the US spends much more on NATO than the EU. He thought that since the US had a much more developed MIC, this would mean Europe paying a shitton of money to the US.

    The thing he didn’t understand was that on the one hand, the EU MIC is undeveloped deliberately to let the US win at military exports in exchange of them funding our defense. On the other hand, the US MIC does not fill a lot of niches that Europe needs.

    Best example of this is that when he did his big visit to Hungary, he convinced Orbán to up his military spending. What happened though was that he didn’t buy F35s, since Hungary has no infrastructure to field those, he bought Swefish fighters, German helicopters and tanks and an Airbus airliner to ̶t̶̶a̶̶k̶̶e̶̶ ̶̶h̶̶i̶̶s̶̶ ̶f̶̶a̶̶t̶̶ ̶̶a̶̶s̶̶s̶̶ ̶̶t̶̶o̶̶ ̶̶f̶̶o̶̶o̶̶t̶̶b̶̶a̶̶l̶̶l̶̶ ̶̶g̶̶a̶̶m̶̶e̶̶s̶̶ ̶̶ ̶̶act as military transport.

    Military spending up, yet not a cent to the US MIC, instead Hungary supported domestic competition. And that’s Trump-friendly Orbán. Imagine the rest.

    So what the Norwegian guy is saying is “all bets are off, we aren’t sitting this out anymore”.