Inflationary Outlook

 Two words: Not good!

We all know about the supply chain problems. It is the repercussions of it that gets little attention. This is how inflation becomes imbedded. When prices rise, they do not return to their lower level. You cannot buy a new Mustang for $1995 like in 1965. The phony Fed and politicians will claim victory when prices stabilize, however we all will have to live with the same income to purchase higher price necessities. Also, watch oil! Every time it hits $100-per barrel, we have a recession. It is guaranteeing our call in 2021. However, there are other aspects to ponder.

We begin with the words from the horse's mouth. The CEO of Norway's and the world's largest wealth fund, Nicolai Tangen sees continuing inflation. This will decrease returns from the market. He believes inflation will touch 9%. 

It gets worse...

There was a series of announcements by some of America's and the world's largest firms. The message was that they will be raising prices this spring. Famous brand names like Tide, General Mills and Ikea made the call. Firms that carry brand names also made similar calls. Kraft/Heinz which markets Maxwell House, the Ketchup, Oscar Mayer and Velveeta cheese will also rise by 9%. Many other firms are going to the old playbook: smaller package, less product, but keeping the same price.

When you return home, your mail will also carry bad news. Rents are rising 14% on a national level. How about a home purchase? If you could not afford one in the past, the future will be less kind. Then, there is a question of taxes and utilities? They will rise in every state and the federal government knows it had better find a way for increasing their revenues or the dollar could tank. If "King Dollar" begins to crater, inflation will go off the charts. Maybe this is why the streaming services like Disney, Netflix and others have already raised their subscription pricing. They want you to be ready and addicted to their programing. 

Shadowstats.com

Ever visit the site? It is run by a good guy, John Williams. He is honest and he has been around the block a few times. Anyway, when the government released their report on inflation by the Labor Department for the year 2021 and ending in December, it said inflation was at 7%. Well, this almost gave JW a heart attack. The report went on to say that the current inflation is the highest since 1982. John Williams steadied himself. He reminds us of the formula that was in place two years earlier in 1980. The government retooled the inflation matrix. Manipulation is a better word. If our present government had used the 1980 formula, guess what our present inflationary rate would be? 15%. Ouch!!

There was also a burb on our national debt. It stated that our debt has passed $30 trillion. We are the worse in the world. That is another ouch!! Anyway, the shills immediately came out from under the carpet to say that our debt was only $22 trillion. The BS centered around the point that $8 trillion was planned debt and not actual debt. They gave the example of a homeowner remodeling his kitchen. The cost would be so many dollars, however the homeowner is not in debt for the repair until he actually has the work done. This is pure BS! If that is the case, our national debt is actually over $100 trillion. Yes, because we will owe for social security, Medicare and of course, future interest on the culminated debt. Debt gets compounded and worse as it builds. The shills did not mention this aspect.

The next inflation report comes out tomorrow. It will show another increase. It should say that our annual rise is up to 7.3%. We'll see says the blind man. Anyway, there is one other tidbit that I would like to bring to your attention. If we enter a recession for whatever reason, our dollar and banks could suffer which also means that we all will pay a price. Did you know that back in the 1970s when inflation was terrible, that our Fed and FDIC had a plan in case our banks were to suffer with their loans to the 3rd World? The plan was to nationalize our banks and banking system. Another reason to End the Fed!   Peace.