Hi readers
So many are asking will inflation increase interest rates? Yes but not as you might think.
So lets unpack it and see where it leads too.
Inflation whether you like it or not is say 6.2% (13.4%).
Wages growth is at 3.1%
Current mortgage depends on where you live, US $412k
What does this picture tell you ?
Inflation is eating up all your wage growth and your loosing 3.1% a month Plus your average mortgage is far higher than what it was 12 months ago $294k.
So whether you understand it or not you are being fleeced or shall we say bankrupted without you knowing it.So how are you meant to pay for items or spend in store for goods. This is where the stock market is so out of whack that a train wreck is coming, Fed now knows it but they knew what they where doing from the beginning, they just thought people wouldn't care.
Know this is happening all around the world regardless of where you reside.
So whats the best way to hide the inflation from the consumers? export the inflation.
So the US fed and treasury department have started to support the dollar higher and are exporting the inflation overseas.When we say exporting inflation as you all know the reserve currency is the dollar, and with that it takes X amount of Euros or A$dollars to buy oil. As the dollar strengthens other currencies weaken which mean it will cost more in Euros to buy oil .Then that extra cost is passed on to the consumer who then has to pay more for it. The simple fact is that central banks are far to involved in the financial markets and are distorting price discovery for there own agenda's.
I worry that this isn't going to end well and many hard working people will wear the pain which is associated with it. It's the reason I left finance far too many agenda's for no good to mankind.
To the crypto readers if the US dollar is going to continue to gain in strength the moves in the crypto markets is limited. I hope I'm wrong and you true believers get your Xmas pump but I doubt it.
To the gold bugs you need deflation to see gold move not inflation as we have now, next year when we start to see deflation start looking at the gold stocks, till then you will be bag holders.
To the Australian readers today we saw some truth's come out with the results of CBA.ax and while they have said that the loan default's are down these where due to the deferrals in Victoria and Sydney as they where in lock down when the numbers where comprised, this will be huge I suspect come end of the year as lock down restrictions have eased.
Geez we are heading into some very interesting times going forward readers.
We have a powerful blood moon eclipse which will affect most signs and yes its warning on the decision side of money, please be careful.
To the Libra's out there your relationships will be strained bite your tongue.
To the cancers out there mend bridges.
It's interesting that its seriously hitting the Federal Reserve chart big time, this time around. (interesting time ahead people)
As always use the above as an indicator to your own work
I'm not a financial advisor, I'm a financial astrologer.
Please seek your own professional advise.
The above is purely based of astrological aspects
