Here is my core macro view.
We are about to witness a massive and sustained drop in Inflation.
I could invite you to look at commodity prices, high frequency indicators like retail sales or my favourite the money supply all heading lower BUT no I wont.
I think the AI revolution we are entering now is the equivalent of the Amazon, Google revolution we experienced after 2010. Amazon and Google created deflation for goods prices
AI and its derivatives (self driving systems) will create deflation for services prices.
You need a lawyer to draw a letter to sue your neighbour? actually no need Chat GPT did it…you need a new logo for your company? Actually no need DALL•E just did it…you get the picture.
Basics intellectual services are about to be reshuffled just like grocery shopping has been.
This will be the true driving of deflation for years to come…