By Gregory Mannarino,
It is no secret that prices are skyrocketing across the board. The narrative you’ll hear from the mainstream media is: “It’s only temporary.”
But it’s not.
What we are talking about here is Economics 101, and it comes down to a concept I have covered for years… Money Velocity.
“Money Velocity” is the rate at which cash is moving through an economy. Today, we are coming off historic lows regarding Money Velocity, but this is changing.
Below is a chart of Money Velocity from 1960 taken from the Federal Reserve’s website. Note the area to the extreme right I circled in red. It demonstrates a slight tick higher with the Money Velocity.

In large part, the current tick higher in the Money Velocity is the result of people going out and spending their stimulus checks, but the bigger issue is this…
We are currently existing in an environment where the Federal Reserve has been on a money-printing binge since the meltdown of 2008. As a result, the Fed has created many trillions of dollars out of thin air, which has NOT, as of yet, begun to chase the same amount of goods. 
The moment the Money Velocity begins to tick higher, as we are seeing now, all those extra dollars begin to chase the same amount of goods and – poof! – INFLATION.
Once this process begins, and it already has, it becomes exceedingly difficult to stop. In fact, the only way it can be stopped is if the Federal Reserve begins to raise rates, which would hit the stock market hard. 
The narrative from the mainstream media of “temporary inflation” must be maintained, and we already have seen several Federal Reserve presidents being paraded out, reassuring the stock market that the Fed will maintain its easy money policy for the foreseeable future.
But the fact is that inflationary pressures will continue to rise. Moreover, the Fed continues to keep its inflation machine running. They are issuing debt through one door and then buying it via another!
The mechanism here requires that the Fed “hide” inflation, and they have already begun to do that as well. The cost of higher energy is being blamed, and several mechanisms already have been put into place to keep the cost of energy high. Supply line disruptions and rising tensions in the Middle East are just two, the usual MO.
To counter rising inflation, we need to dump dollars and seek alternative assets, like physical gold and silver and, also, in my opinion, cryptocurrencies.

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