January 22, 2022

The Fed Has Triggered A Stagflationary Disaster That Will Hit Hard This Year

If the current momentum continues the majority of necessities in the U. H. will not be affordable for most people by next year.

I actually don’t think I can overstate the risk that the U. S. economic climate is in right now as we get into 2022.

While most people are caught up in the ongoing drama associated with Covid-19, a REAL threat looms over the nation in the form of a stagflationary tidal wave. The mainstream media is trying to place the blame on “ supply chain disruptions, ” but this is a misrepresentation from the issue.

The two factors are indeed intertwined, but the reality is that inflation is the cause of supply string disruptions, not the result of supply chain disruptions. If we look at the underlying stats for price rises in essential products we can get a clearer image.

Before I actually get into my argument, I absolutely want to stress that this is really a precarious time and I claim that people prepare accordingly. In just the past few months I have noticed personal expenses rise a minimum of 20% overall, and I’m certain it’s the same or even worse for most of you. Stocking necessities and safe-haven investments with intrinsic value like physical precious metals are a good choice for protecting whatever buying power your dollars have left…

Increased prices everywhere

The Consumer Price Index (CPI) is officially from the  highest amounts in 40 years . CPI measurements often diminish the particular scale of the problem because they do not include things like food, energy and housing which are primary expenses for the public. CPI calculations have also been “ adjusted” over the past few decades from the government to express a more positive view on inflation. If we consider the inflation numbers at Shadowstats, calculated according to the  same methods they used in the 1980’s , all of us see a dramatic increase in CPI which paints a more serious (but more accurate) image.

U. Ersus.   food costs have spiked   to levels not noticed since 2008 at the onset of the credit and derivatives collapse that brought about tens of trillions of dollars in Federal Reserve bailouts.

If we look over and above the 2008 crisis, food costs do not see a comparable jump until the 1980s. Rising food prices in the US are usually obscured by creative construction and “ shrinkflation” (shrinking packages and rising prices), but if we look at  global food costs   the average is really a 30% jump in the past yr.

Rental and home prices have also gone into the stratosphere.   Rental costs went up around 18%   in 2021, and this is definitely an extension of a trend that has been prevalent for the past decade. Prices have been rising for a while, it can just that now the influx has accelerated.

Home prices are currently out from the range of most new potential home buyers. Values jumped 16% in the past year alone, with the average property charging $408, 000. Home product sales continue to remain elevated in comparison to two years ago despite inflating prices for one reason and another reason only – the mass migration of Americans away from the draconian requires and bureaucracy of azure states into more conservative states.

I live in Montana, a primary destination for people relocating, and through my experience the majority of these people are conservatives seeking to escape the particular vaccine and lockdown requires in places like California, New York and Illinois. They see the writing on the wall structure and they are trying to get ahead of the economic and social calamity that will surely befall such claims.

I would furthermore note that home sales have finally begun to trim in the past six months but costs are not dropping, which is a trend that I think needs to be discovered further because it illustrates the bigger issue of  stagflation .

When inflation becomes stagflation

Understand that prices are not just rising because of increased demand (demand is starting to fall in many sectors), prices are rising because of  increased money supply   and dollar devaluation which is not yet being shown in the Dollar Index.

Take a look at  U. S. GDP   and you will see that for the past several years it has tracked within tandem with price inflation. Obviously, if prices fill then this means people are investing more, which then leads to increased U. S. GDP; it could like magic, right? In other words, inflation makes it seem as though U. S. GDP is always improving.

However , this has not been the case in the past couple of years.

Recognized GDP has flattened despite the fact that U. S. money supply and inflation have rocketed higher. What does this imply? I believe it is a sign of stagflation and a reckoning within 2022. If we examine inflation adjusted GDP numbers through Shadowstats we see that  GDP has dropped   rather aggressively in the past couple of years.

We can also see unusual tendencies in oil plus gasoline prices. While really true that  gasoline prices have been higher   in the past, this does not really address the full context from the situation. U. S. vacation spending has declined 12% since 2019 and airline travel has dropped at least 21% in the past year.   Average gasoline utilization dropped   after 2019 and still has not recovered. Yet, gas prices still rise? In other words, travel need is stagnant but costs are INCREASING – this really is another signal of inflationary pressures and dollar devaluation. Oil is priced in dollars globally, and therefore any inflation in the dollar is going to be readily visible in essential oil. This would help explain exactly why pandemic paranoia and decreased travel have not caused fuel prices to drop.

If the current momentum continues the majority of necessities in the U. S. will not be affordable for many individuals by next year. We are looking at a fast-moving decline within production along with a swift surge in prices. In other words, a stagflationary disaster.

This is the Federal Reserve’s fault

I and many other alternative economists have been warning about the unavoidable inflation/stagflation crisis for years, but the most important factor to understand is Who may be responsible this event?

The mainstream financial media is going to protect the government and the Federal Reserve at all costs in this breakdown. They are going to blame Covid, the lockdowns here and overseas as well as the supply chain bottleneck.

The Fed is the true culprit, though.

While there have been many American Presidents and other politicians that have backed the Fed in its inflationary activities, the central bank itself needs to be held responsible for the downturn that is going to occur. This is a process that will started back at the founding of the Fed, but distribute like cancer after the crash of 2008 and the intro of 12+ years of stimulus and bailout measures together with near-zero interest rates.

The inflationary end-game

The pandemic is the perfect protect for the inflationary end sport. In 2008 the reaction to the crisis was to print and pump dollars into banks and corporations in the U. S. and around the globe. This money provide was held in corporate coffers and in central banks abroad, which slowed the effects of inflation. This set the precedent just for subversive stimulus policies by giving the Fed a blank verify to do whatever it desired.

In 2020, the Fed created trillions more but this time the cash was injected directly into the U. S. economy via Covid stimulus checks, PPP loans and other measures. In the alternative economic field we call this “ helicopter money. ” These dollars triggered a massive retail purchasing spree in 2020, using more dollars in the economy running after less goods prices are now spiking much higher.

The big discussion today is whether or not the Fed may taper their asset buys, reduce their balance sheet and raise interest rates in order to counter inflation?

The fact is it won’t matter; inflation/stagflation will continue or even accelerate as the Fed tapers. With a taper comes the danger of a flattening yield curve in Treasury bonds along with the danger of bonds and dollars being dumped by foreign investors and central banks. If the trillions upon trillions of dollars being held overseas come water damage back into the U. T., inflation will continue on its current pace or even erupt even higher. Actually the  world’s possession of dollars   reached a 26-year low recently. The global transition away from the dollar, toward  inflation-resistant investments , has begun.

This is not a policy error

I explained this Catch-22 threat inside my recent article  The Fed’s Catch-22 Taper Is really a Weapon, Not a Policy Mistake . In that essay I outline the Fed’s documented history of creating economic catastrophes that conveniently end up benefiting their friends in the international banks.

I also explained (with evidence) the way the Federal Reserve actually takes a marching orders from the Bank for International Settlements, the globalist institution which combined with the International Monetary Fund plus World Economic Forum is openly seeking a one-world economic system and one-world currency system.

I actually do not believe that the Fed’s actions are a product associated with ignorance or stupidity or basic greed. I do not really believe the Fed is scrambling to keep the U. S. economy afloat. In my opinion according to the evidence that the Given knows exactly what it is doing. The particular pandemic offers a perfect scapegoat for an engineered crash of the U. S. economy which the Fed is trying to facilitate.

Why? Since the more desperate people are financially, the easier they are to buy away from with false promises plus a loaf of bread. These are easier to control. On top of that, with the Oughout. S. economy reduced to second- or third-world position, it is easier to sell the general public on the predetermined solution – total global centralization and far less freedom.

As the stagflationary crash performs out, never forget who was really the cause of the public’s struggling. In the fog of nationwide crisis it is easy for the establishment to shift fault and responsibility and to cloud the truth. The inflation calamity is about to get much even worse, and as it does we need to rally newly awakened people to make a change against the central bankers plus globalists behind it.


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