8.5% inflation and the FED talks tough on a 50 basis point move. Laughable

 Hi readers 

So the markets have been consolidating there gains from the start of the quarter.

Its funny to see how the FED parades out there members talking about them moving on rates more aggressively yet they seem to only be talking about a .50 bases point move.

It was Funny how the IMF stated that interest rates need to be over the rate of inflation by half a percent to squash inflation yet, all of the western world interest rates are way below.

I quote from the International Monetary Fund,"until interest rates are above the rate of inflation, any small moves are just feeding the inflation to move higher.

So the US inflation rate is 8.5% and yet rates are at .25 of a percent.

Australia inflation rate 3.5% and yet rates are at .10 of a percent

UK inflation rate 7.0% and yet rates are at. .75 of a percent.

Brazil inflation rate 8.5% and there rates at 11.25%

So you tell me who is doing something about inflation. 

The world economic forum had this big plan to create inflation which in turn employers would raise wages and in turn people would have the money to support themselves and there mortgages.

Whats happened is that yes inflation is running out of control, yes people have received a 3% pay increase but inflation is way above the pay rate increase which means people are loosing 5% at least if not more than last year.

The problem is that the banks who gave these monster mortgages out the last 10 years knowing full well this was the plan are now starting to panic.

As the mortgage stress on borrowers and investors is showing with defaults increasing aggressively.

Nobody wants you to know the truth, all your told by the media is that all is great and economies are strong. Nothing can be further from the truth, inflation is going much higher than many people think. The cost of foods is increasing and will continue to increase we are see riots in countries regarding food inflation. This week we saw countries who export grains stop all exports and grains are going to be kept by governments for there own people. Energy inflation is only tip of the iceberg, food inflation there is no escape. Rice, all grains, Cooking oils, sugar, coffee and anything with long life should be stored, those of you who have a backyard work it up and plant a garden, it will be the best investment moving forward.

Energy inflation can be avoided, by either train, or sharing costs, and extra blanket at night or wearing pyjamas at night. 

Food there is no escape, you need to eat no matter what, sure you don't have to eat meat, but you still need to eat food. Yes we can all go on diets but for how long ?

Not trying to freak anyone out just stating whats coming.

Then you have the mortgage drama that's on the doorstep of everyone who has bought property in the last 15 years and you have a storm which no one can see. I say that because a large number of people who during covid lockdowns redrew on there home loans to survive. Oh if you think your money is safe in the bank think again.I did a post showing how your money in the bank can be used by the bank as its own at any time, think it won't happen from the defaults on mortgages, stay tuned.

As always use the above as an indicator to your own work.

The above is based on Astrological aspects

Ask your Financial advisor on more on the above.