|
|
By Gregory Mannarino TradersChoice.net
For YEARS I have outlined for people who follow my work that an inflation tsunami was approaching, and there was no way to stop it. Well, this event has certainly begun despite what the mainstream media propaganda machine may be reporting.
Moreover, rising inflation is about to get much worse.
To comprehend the existing historic rise in inflation, which is currently surging at its fastest pace EVER, and a U.S. Dollar whose purchasing power has now dropped to a 39-year low, you only need to understand one basic concept—we are at a moment in time where the many trillions of dollars which have been magically created out of thin air by the Federal Reserve, are just beginning to chase the existing amount of goods.
Additionally, this is happening at a time when the money velocity, or the rate at which cash is moving through the economy, is at a historic low.
Several months ago, I advised those who follow my work to watch for two things to occur.
Number one. The mainstream media would point to the surging cost of energy as the source of rising inflation.
Number two. The mainstream media would also point to supply chain disruptions and therefore blame shortages for inflation—now both are currently being used as scapegoats for surging inflation.
Despite all the talk about a “booming economy,” factory activity here in the USA is cratering along with our trade deficit hyper-ballooning. Debts and deficits continue to surge—the current US budget deficit just spiked to its second highest level in history.
Meanwhile, the Federal Reserve, who is the root-cause of the surging inflation, continues to issue debt through one door and then buy debt through another door. This “revolving door” debt creation mechanism by the Fed IS THE SOURCE of surging inflation!
Additionally, the Federal Reserve has no intention of stopping this revolving door mechanism—essentially an inflation-creation machine. The Federal Reserve along with many central banks around the world are deliberately inflating, just as I have said they would from years ago—the current balance sheet of the Federal Reserve sits at $8.2 trillion and is going much higher.
What most people do not understand is that every single unit of debt a central bank is allowed to issue makes them exponentially stronger, and central banks around the world are deeply involved in a global takeover of the entire system—including governments.
Last week the Bank of International Settlements, which is the central bank of central banks, said specifically that they are in the process of attaining “ABSOLUTE CONTROL” of the world financial system, which means they will control the world.
The power of any central bank resides in its ability to issue ever increasing amounts of debt. Understanding this mechanism should make it easy for you to understand why we are seeing inflation rise so quickly.
The Federal Reserve Chairman, J. Powell said last week that he is not concerned about the rising cost of living because it is “not widespread,” in other words, inflation is contained.
Inflation IS NOT contained, nor is it transitory or temporary, inflation is being driven higher BY DESIGN and a new Feudal System is upon us.