inflation just wants to explode again.

 Hi readers 

So we just had the FED come out and say that there is more likely to be 1 cut by the end of this year.

So what happen since November 2023, what changed the 6 rate cuts by the end of 2024 and with 3 cuts potentially by the first quarter.

Yes people we are being gaslighted, because no central bank is in charge of interest rates at the present time, they want you to believe that they are but there not. INFLATION is.

First quarter came and went and we got no rate cuts, but we got talk of a May cut, May came and went with nothing, market then took the view that by June the FED will cut 1/4%, again all we got was talk.

The bullshit propaganda media who pushed the November 2023 ideas for the last 6 months refuses to accept or even tell you the people the truth. 

WE see the dickhead from CNBC now use language of ( high expectation of a rate cut by year end).

Previously it was (definitely 3 cuts by mid 2024 with the possibility of 6 by year end ).

This is what annoys me when people who don't understand economics create this false narrative and people believe what they are told and actually plan on what they are told. 

Inflation is running above the statistics numbers and the FED is very aware of it and that why they simply can't cut rates. When the market starts to understand this a correction in fluffed up names will commence.

Australia is in the same boat, the current inflation rate is much high than what the current CPI number is, and the more the government continues to bring in migrants into Australia the higher the inflation will be. Newly arrived migrants are not contributing to the economy as previous times, there is simply not enough jobs in Australia to support the number of people coming in.

At present 10,000 migrants a week its been cut from 25,000 and to date this year its over 720,000. In previous year it was 120,000-140,000 per year.

The way of life in Australia is being changed and it will be for the worse.

So what do I mean, supply and demand is a wonderful thing, it tend to price good accordingly. All western countries at the present time are going through this, even Europe. 

Farming has lacked investment for decades due to poor return, when I say poor returns Im talking under 10% yearly, very rarely will  farmers cash in big unless crops they produce ballooned in price due to weather damage from other farms. Today we aren't see any weather damage or tarriff issues, its simply a supply/demand issue. Today's generation isn't interested in farming due to the lack of returns. The average age of farmers has increased so much so that farmers are selling up or simply closing down and retiring. 

So what that does is paralyse the comsumer into paying more for the simple things we take for granted food. Then you have the importation of migrants which just compounds the issue and that dear readers is how you have your inflation.

Migrants aren't looking to buy dishwashers or microwave ovens or label designer clothes, they are looking to buy needed goods. The same things you need to buy to survive, thats how your getting the compounding inflation. 

Some of you might say that in Canada and the ECB just cut rates, and its only a matter of time.

Wrong they cut rates because the defaults on morgages is that big that its threating the banking system. People can't simply pay the interest only let alone the principle, so you either save the banks or you blow up the economy, they have decided to blow up there economies.

Inflation in these 2 economies will continue to rise and its only a natter of time before there currencies face the market revaluation.

As I have told many of you before until the interest rates are higher to kill demand inflation will continue to rise. Unless countries start using the american model of ex food, ex health, ex military, ex everything. Bullshit economics

For those of you in the political arena, how do you solve it.

Increase interest rates by at least another 2%. 

This will destroy demand, people will spend on there needs, businesses will limit the mark up on products to attract sales. The good businesses will survive while the zombies will purge, 10/1 innovation will come and economies will regroup and recover.

Remember this readers inflation has never come down without the stockmarket crashing or correction over 30% so until then dont believe what your told by media or central banks.