Hi Readers .
So inflation has now hit 9% of what we are told , Bond rates are dropping in yield and we are being conditioned or should I say convinced that all is fine and there is nothing to see.
Well lets just question that !
The rental component of the inflation measure is just 5.4%, now My understanding is that rents have gone up by at least 20% nation wide in the US, internet websites have said it crystal clear that rents have increased by 26% nation wide.
Food increases on average have gone up 21% yet the inflation numbers don't even come close to that and lets not start about energy component also.
As I said before until rates are above the rate of inflation we aren't going to see inflation come down.
The Fed is going to move again even tho they will regret it, they have no choice but to move on rates.
They are trying to manipulate the inflation by increasing the value of the USD and manipulate the commodity market. But unfortunately what the Fed doesn't realize or understand is that there is a major difference between the paper price of commodities and the real price of commodities.Paper prices is what the media and market participants know. The real price of delivery is what the users are buying and passing onto the consumer. So here is the next level of misunderstanding which all central banks don't get.
All food processes who buy raw commodities increase prices slowly, as not to spook the consumers/customers. So when prices do come down and there costs do come down prices to consumer don't move down they stay where they are until margins and profits have been restored.
Its not discretionary spending where your convincing people to buy something they don't need or peoples businesses income comes from sales of products.It's food which yes is a perishable product but people need to have it, there is no choice.
Something to keep in mind moving forward the inflation rate in the US is around that 19% mark which shadow stats has shown.
Also note that with the stronger USD inflation as I said months ago is being exported overseas.
We are witnessing countries go broke and people are starving yet the world media isn't showing anything of it.Yes things are going to become more difficult moving forward but as longs as your aware of the truth then you can take measures which can somewhat insulate the blow.
Your seeing provinces in China where people can't take there money out to buy the normal household items. Yes this started in April and has spread from 1 bank to 6 banks.
In Sri Lanka the government defaulted on debt and the people have rebelled against the government as prices inflation has forced people to go hungry as they simply can't afford the costs of food and energy. As I have said it before the one thing governments fear is there own people rebelling.
In Australia we are starting to see cracks everywhere also, previously covid rules would act on stages, Yet this time around nothing is being acted upon. Which has finally shown people that it was never about there health, there was an agenda to in debt people and small businesses, then when the so called support came along small business never qualified yet every multinational business/asx listed did. The fear or rebellion was so great this time that the federal cabinet was called in and reinstated stimulus cheques immediately to people to stay home if they have covid.
My concern is that everyone I know who has been double jabbed has had covid a second time. Yet those who haven't been jabbed are fine, just putting it out there as the truth is painful to accept.
Now here comes the reality check for some of you who don't understand whats taking place.
Covid is going to reduce the unemployed levels and as a result will show that there is a strong labour market, which is the justification the central banks will need to increase rates against inflation. Yet getting away from the reality that it was the central banks that created the environment of cheap money to lure more debt into the market. As the world runs on a debt base system.
As always use the above as an indicator to your own work
Ask your financial advisor on more on the above.
The above is based of financial astrological aspects.
