Inflation rose to a new high at 9.1% year over year. The market is now pricing in a full 100 basis point rate hike for July and more to follow. In spite of the USD being the king cockroach on huge pile of dog poo currencies, it's purchasing power in country is diminishing as I type.
The wealthy may be annoyed by inflation but the poor and middle class are hurt by it. Lifestyle choices are being made between food and gasoline and many other items. Plus, if farmer predictions are right, we will have food shortages this fall or sooner. That is being brought on by the Ukraine war preventing grain from leaving the country, shortages of fertilizer and transport/distribution difficulties. Stocking up on non-perishables is sensible but who can afford that when the more immediate problem is tonight's dinner table or tomorrow's fill up.
The Federal Reserve and other Central Banks have had interest rates at zero for years and during that time created Trillions of new cash out of thin air. The entire system is debt based and is lining up to bring a currency crisis. Never letting a good crisis go to waist, our Fed and Fed government will soon bring in a new digital dollar that can be programmed. No more cash means privacy will be gone in the US and other countries. Indeed, the Federal Reserve is the agency that actually runs things and the federal government likes their approach because they are willing to print cash for all of their deficit spending. If spending doesn't stop and deficits eliminated the rising interest rates will soon use up any discretionary items in the budget (what budget???) and a default on the US Bonds becomes more possible. I do think the fed will inflate money supply again and sooner than expected in spite of inflation. That will worsen inflation and deepen any recession which many believe is already in play.
These are perilous times. Recessions, maybe depression, food shortages, devaluing currency, inflation...these create civil unrest. Just watch Sri Lanka or Ghana.
I recommend that preparing for food shortages the best you can, also prepare for civil unrest. Have a group that agrees to protect each other if the worst happens. Speaking of worst, the NYC Public Service spot airing about a nuke hitting NYC is a joke. There is nowhere to hide from direct hits and if you think survivors will be inclined to be kind you're delusional. The wealthy and elite government types will have shelter. That is one reason they can be so cavalier about the Ukraine War and poking the Russian bear. Our federal government is a disaster on all fronts with exception of the new paradigm where men have babies. Come on man!
Be aware of your local condition with an eye on the big picture. The situation we now have has been created. Until a sea change occurs in the House and Senate and hopefully the WH in 2024, we are in great peril.
Good Luck.
Donn Marier
DM-Your Own CFO