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By Gregory Mannarino TradersChoice.net
If you think that you have seen higher prices lately, well, you haven’t seen ANYTHING yet!
Let’s start off with this… in ABSOLUTE TERMS the purchasing power of the U.S. Dollar is evaporating faster than ever before. Meanwhile the Federal Reserve continues to HYPER-BALLOON the money supply (see chart below).
(This Money Supply chart below was taken directly from the Federal Reserve’s own website).
MONEY SUPPLY.
Allow me to briefly explain how a dollar, once created, achieves purchasing power.
When any central bank either prints currency, or simply adds digits to a screen, that new piece of currency, to gain any purchasing power, MUST STEAL a fraction of a fraction of a fraction of purchasing power from every other existing bill. This mechanism, the creation of currency from nothing alone, is massively inflationary. This issue of money creation from nothing is then compounded by the Federal Reserve’s mechanism of subsequently buying assets, which include U.S. Treasuries and Mortgage-Backed Securities.
In addition to asset purchases, the Federal Reserve along with other central banks also provide the funding for every ongoing and newly created crisis—none more so than the last two crises which include Covid and the Russia/Ukraine war.
First, ACCORDING TO THE MAINSTREAM OUTLETS, it was Covid which was being blamed for supply chain disruptions and shortages, but now the Mainstream Propaganda Machine is now pointing at Russia. Moreover, the Mainstream propaganda is pushing yet another lie, which they are calling “peak inflation.”
In no way is inflation peaking. Moreover, with the current mechanisms in place, ballooning money supply issues, central bank asset purchases, ever expanding crisis, and supply chain disruptions, inflation will continue to rage higher.
Issues involving skyrocketing inflation, food supply disruptions and energy shortages should be taken very seriously by everyone, especially in this new “crisis to crisis” economy.
People need to understand that everything they are seeing unfold today regarding these issues IS NOT by accident. Moreover, they are going to be made worse by design.
What should you do about it?
Understanding that YOU have no representation regarding government whatsoever, it’s now every man for himself! And understanding the current environment is key.
Always have the high ground, meaning be ready for anything.
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