Well, we have Covid and Inflation both rearing up. That is not a good combo.
One of the tasks we depend upon from our government is that they inform the Citizens about issues of safety and common factors to well being. Covid has been a mush mosh of poorly communicated information and has taken on the color of falsities. What, the CD lie? You bet! The once venerable CDC has become a joke and we seem the punch line. As for the information on Inflation, it's even worse. The Federal Reserve talks a lot but what are they are doing??? Zip, Nada, Zilch!
As it now is being reported and no longer canceled, those with the Covid vaccination CAN spread the new Delta Variant with just as much ferocity as those who are not vaccinated. Isn't that just dandy.
And Powell is now skirting with language more than implying that Inflation may not be transitory, but rather last for some time before slowing and getting back to the Fed's target of 2%. Notice, he is NOT saying it will reverse and prices go down to earlier more sustainable levels, but slow and maintain 2%. So my advice on this is to steel yourselves for higher prices. Rent, food, gas, paper products and much much more will be higher. Current interest rates are very low and the inflation fighting "tools" Powell talks about may prove too little too late once they do act. They should be raising rates now, but because of the National Debt being so damn high their hands are tied. Plus the DC. crowd and Wall St. are addicted to the freely running printing press the Fed likes to call Quantitative Easing...hell, when's the last time anyone can remember we had a Balanced Budget???...deficit spending is at its worst under Biden and the Democrat controlled Congress and getting worse with another multi-trillion dollar boondoggle on deck. This stinks like rotting fish!
With new shut downs imminent, inflationary pressures rising and a broad distrust of government information expect STAGFLATION at best and a deeper Recession potential looming. Forget the fluff that financial news channels tout and be realistic. The stock market has risen on free money and kept the illusion that the economy is dong great. Hey, the GDP is related to the big shut down year of 2020 so it's not growth so much as a return, and a shaky one at that, to 2020 levels. If the economy is so great then why is our trade deficit so big and getting bigger. The USA may CONSUME but we surely don't produce like we once did. When I say that I mean the manufacturing is not done here in the USA but rather elsewhere, especially China. This won't end well. And if the US Dollar loses its coveted and beneficial position as the World's Reserve Currency, forget about it as said in Jersey.
If I sound a bit sour, I am. I am disgusted by the panty waist bunch running DC. and many local governments are no better. While they make America Woke the Chinese are taking over the world. I should be clear here, it is the Chinese Communists that are doing this take over and they aren't namby pamby about it. Instead, they are exercising a masculine flex without apology. Again, this will not end well.
I can't say with 100% certainty that we will have a shooting war with China, but make no mistake, we are at war with them using the equivalent of bullets and bombs in form of propaganda, social media, finance, trade and world influence. So what will Biden do when China grabs Taiwan? I think he'll either try to be tough in desperation and lose that fight or he'll pull a Chamberlain and do nothing while declaring some empty diplomatic success disguising the surrender. Biden is on the take from China...COME ON MAN!
Best,
Donn Marier
DM-Your Own CFO