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Purchasing manager? how are they thinking? it is now an emerging market government and we do expect them to jump into the market because feeding a population and in an inflation environment is important for stability, so we would expect to see a large government led purchases over the coming months, and adds to that inflationary pressure. the world will adjust, the world will react and we will get a supply response. in the near term, prices will get higher still. i as you say, those governments were able to act quickly and effectively can maybe get stocks in but it will be the poorer countries...

But someday, maybe someday but not today. and we're in an inflation environment now. 40-year high for inflation, people are struggling. wages aren't rising fast enough and people are upset about gas prices. i'm upset about gas prices. it is expensive. >> dana: hurting small businesses. >> trace: it will take time. gasoline prices -- don't quote me. gasoline prices will likely come down. energy traders and the energy market understand the ukraine/russia conflict. the volatility will subside in the oil market. >> trace: you can't get wind and solar on the grid unless you have fossil fuels. you n...

We still have the bug bear of inflation. they are pegging it at between 4% and 5% next year. that will cut into people's spending power and that includes the government's own spending power. each percentage or half a percentage point that inflation goes up is going to make all this a little bit tougher on sunak and johnson as the year goes by. i think that's - an important point. inflation was the thing that stalled this budget. - it stalled the economy. in the uk is around the world. even though all of this - spending, hey big spender were the headlines in the uk, a lot of people will not fee...

But don't worry, the administration says long term this will lead to lower inflation. should we be okay with that? >> well, this is the one place where i have been on the other side of the fed chair. i have said for many months that we're already in an inflation environment. that when he used the word transitory, i disagreed with him. i didn't understand what that meant or the timetable. he has not given a clear idea of that either. so i think that during this pandemic and post pandemic time, there's no question that supply chains and the labor market has changed. the environment for trade glo...

>> that is typical of what happens in an inflation environment. inflation always runs ahead and wages run behind and employers try to adjust to keep up with inflation but once the process begins, it is hard to put the toothpaste back in the tube and i go back to the concern the federal reserve continues to buy something like $80 billion in treasury and $40 billion in mortgage securities every month, it is adding quiddity to an economy that doesn't need it. this is going to be inflationary, they will have to withdraw that liquidity at some time that will be a problem especially for the federal ...