In Case You Were Wondering Why Inflation Has Started To Spiral Wildly Out Of Control…Michael Snyder

In Case You Were Wondering Why Inflation Has Started To Spiral Wildly Out Of Control…

Posted: 14 Jul 2022 04:50 PM PDT

When you keep making horrible decisions, eventually the consequences are going to catch up with you.  That is true for individuals, and it is also true for entire nations.  Here in the United States, previous generations handed down to us the strongest and most stable national currency on the planet.  Having the default reserve currency of the world has been a great blessing, because it has enabled us to enjoy a standard of living that is far greater than we actually deserve.  But instead of doing their best to preserve and protect our currency, our leaders have decided to systematically destroy it instead.  As a result, the rate of inflation has gotten completely out of control, and many experts are extremely concerned about what lies ahead.

It doesn’t take a genius to figure out why we have such a problem with inflation at this point.

The money supply has ballooned to levels that were once unthinkable, and this is going to cause massive problems for the foreseeable future.

Let me show you what I am talking about.  The following chart of how M1 has changed over the years comes directly from the Federal Reserve

The giant spike that you can see on the chart started during the early stages of the COVID pandemic.

Our leaders abandoned any pretense of restraint, and we went “full Weimar” for about two solid years.

I warned over and over again that what we were doing was absolutely insane, and now we are starting to experience the consequences.

Many people believe that M2 is a much more accurate measure of the money supply than M1 is, and so let me show you a chart of how M2 has changed

This chart certainly looks better than the previous one, but it is still extremely frightening.

We are rapidly destroying the stability of our currency, and as a result our standard of living is being absolutely shredded.

I’ll give you an example.  A young lady down in Texas went viral this month when she revealed that she was living in a shed in a desperate attempt to save money

A young Texas woman who moved into a shed that she purchased for just $2,000 in order to save money amid the housing crisis has opened up about her desperate struggle to cope with the summer heat while living in the property – which has no AC or shower.

Is this what they mean when they tell us that we are going to “own nothing and be happy”?

Apparently she was promised that the shed would be “fully livable”, but she quickly found out that wasn’t exactly true

However, in a video shared to her TikTok, which gained over one million views, Elizabeth revealed that she was ‘ripped off by the builders’ because she was under the impression it was a fully livable shed and is ‘dying’ in the Houston heat while thinking about how ‘nice’ a shower would be.

The good news is that her father came down from South Carolina and installed lights and air conditioning.

So now Elizabeth and her boyfriend will be able to cool off during the summer months.

But they still have no way to bathe.

Sadly, the truth is that they are far better off than hundreds of millions of others around the globe right now.

As energy costs and food costs go absolutely haywire, we are starting to see widespread civil unrest in various parts of the world.

For example, check out what is currently going on in Sri Lanka

The political crisis triggered by months of socialist economic collapse in Sri Lanka continued on Wednesday with violent clashes between protesters and soldiers, resulting in upwards of 80 people hospitalized in one day and the military announcing soldiers were “empowered” to attack civilians if deemed necessary.

The Democratic Socialist Republic of Sri Lanka, governed for the better part of the past two decades primarily by the populous Rajapaksa family, began to run out of food, medicine, oil fuels, natural gas, and nearly every other basic good in March, the result of lavish government spending and the imposition of “green” policies that banned chemical fertilizer use.

They promised us that the “green revolution” would change everything, and they were right.

Things are starting to get really crazy in Albania too.

Update: Albania… https://t.co/5OYzpjvdBd

— EndGameWW3 🇺🇸 (@EndGameWW3) July 9, 2022

And what we are witnessing in Panama right now is extremely alarming.

🇵🇦 #Panama goes out to protest high fuel prices and corruption from the province of Veraguas, the Inter-American highway is closed. pic.twitter.com/noynoKXkKf

— PN News (@PN_News_EN) July 6, 2022

All over the globe, energy and food are traded in U.S. dollars.

When interest rates rise in the U.S., the dollar tends to go up relative to other global currencies, and that makes things much harder for those at the very bottom of the economic food chain.

Unfortunately, in a desperate attempt to get inflation under control in the U.S., the Federal Reserve has been aggressively raising interest rates.

And we are now being warned that the Fed could raise rates “by a full percentage point” at the next meeting…

Investors see a growing probability that the Federal Reserve could hike interest rates by a full percentage point at its next meeting for the first time in the modern era. In June, the Fed raised interest rates by three-quarters of a percentage point, which it hadn’t done since 1994.

Considering the fact that we are plunging into a recession, it would be absolutely insane for the Fed to do such a thing.

But they seem quite serious about making another big move.

In fact, the head of the Atlanta Fed just publicly told us that “everything is in play” at the next Fed gathering…

Atlanta Federal Reserve Bank President Raphael Bostic said Wednesday that “everything is in play” when asked about the prospect of the central bank raising interest rates by a full percentage point later this month, expressing concern over the morning’s news that inflation hit a fresh 40-year-high in June.

Bostic told reporters he still needed to study the “nuts and bolts” of the latest data, but said he felt “today’s numbers suggest the trajectory is not moving in a positive way.”

The Fed seems to be obsessed with trying to tame inflation here in the U.S., but in the process they will essentially be exporting a tremendous amount of inflation to the rest of the globe.

Food and energy will become significantly more expensive all over the planet.

And since much of the debt that poor countries owe is denominated in dollars, we also run the risk of sparking an unprecedented global debt crisis.

The total amount of debt in the world has crossed the 300 trillion dollar mark, and if that bubble bursts we will suddenly be facing the sort of historic financial catastrophe that I have been warning about for years.

Our leaders thought that they could endlessly flood the system with money without ever suffering any serious consequences.

They were dead wrong, and now the entire world is going to suffer excruciating pain as a result.

The Inflation Monster That Our Leaders Have Created Is Voraciously Eating Away Our Standard Of Living

Posted: 13 Jul 2022 02:49 PM PDT

The purchasing power of the dollar is not nearly as strong as it once was, and as a result our standard of living is rapidly going down.  The overall rate of inflation has been rising faster than our paychecks have been for quite a while, and this is causing a tremendous amount of pain for millions of U.S. consumers.  Unfortunately, this isn’t going to change any time soon.  The inflation monster that our leaders have created will continue to rage even as our economy plunges into a severe recession.  I relentlessly warned that the trillions of dollars that our leaders were pumping into the system would cause enormous problems down the road, and now we are trapped in an economic nightmare with no easy way out.

On Wednesday, we learned that the rate of inflation in the United States jumped even higher last month…

Shoppers paid sharply higher prices for a variety of goods in June as inflation kept its hold on a slowing U.S. economy, the Bureau of Labor Statistics reported Wednesday.

The consumer price index, a broad measure of everyday goods and services related to the cost of living, soared 9.1% from a year ago, above the 8.8% Dow Jones estimate. That marked the fastest pace for inflation going back to November 1981.

Of course the way that inflation is calculated today is much different from the way that it was calculated back in the 1980s.  If the way that inflation was calculated had not been changed, the official inflation rate would be much higher right now.

But even if you want to take the 9.1 percent figure at face value, it is still extremely high, and last month energy and food prices were two of the main reasons why we witnessed such a dramatic surge…

  • Gas: 59.9%
  • Electricity: 13.7%
  • Food at home: 12.2%
  • New vehicles: 11.4%
  • Food away from home: 7.7%
  • Used cars and trucks: 7.1%
  • Shelter: 5.6%
  • Apparel: 5.2%

Let’s focus on that “food at home” category for a moment.

Every single one of us needs to eat, and so this is something that is deeply affecting all of us.

And right now we are seeing rapid price increases in almost aisle of the grocery store

  • Cereals and cereal products: +15.1%
  • Beef and veal: +4.1%
  • Pork: +9.0%
  • Poultry: +17.3%
  • Fish and seafood: +11.0%
  • Eggs: +33.1%
  • Dairy and related products: +13.5%
  • Fresh fruits: +7.3%
  • Fresh vegetables: +6.5%
  • Juices and nonalcoholic drinks: +11.6%
  • Coffee: 15.8%
  • Fats and oils: 19.5%
  • Baby food: 14.0%

Has your paycheck gone up by a similar amount over the past year?

If not, you are losing ground and your standard of living is declining.

Overall, real wages in the United States have now fallen for 15 months in a row.

In all the years I have been writing, I have never seen anything quite like this.

According to one expert that was interviewed by the Daily Caller, “American families are being crushed” by the inflation tsunami that we are witnessing right now…

Under the Biden administration, skyrocketing fuel costs and exploding inflation are hurting everyday Americans the most, according to an economist at the Heritage Foundation.

“Energy prices are trickling down into everything and American families are being crushed,” E.J. Antoni, a research fellow for regional economics in the Center for Data Analysis at The Heritage Foundation, told the Daily Caller News Foundation.

Antoni also says that the average worker in the United States has “lost the equivalent of almost $3,400 in annual income” due to declining purchasing power since Joe Biden entered the White House

“The average worker has lost the equivalent of almost $3,400 in annual income since Biden took office,” Antoni explained.

Real average hourly earnings decreased 3.6% from June 2021 to June 2022, according to recent Bureau of Labor Statistics (BLS) numbers. The change in real average hourly earnings combined with a decrease of 0.9% in the average workweek resulted in a 4.4% decrease in real average weekly earnings over this period.

“This is catastrophic, $3,400 is some people’s food budgets for a year,” Antoni continued.

The good news, if that is what you want to call it, is that the inflation rate will probably subside just a bit during the next few months.

I have to admit that I agree with Jay Hatfield’s assessment of the situation

Jay Hatfield, CEO at Infrastructure Capital Advisors, says this may signal the peak. “We forecast that this print will mark the peak of inflation as the Fed’s 15% shrinkage of the monetary base, which is the fastest decline since the great depression, will curb inflation as the QT has caused the dollar to appreciate by over 12% this year which has caused commodities to plummet by over 20% since the measurement period for June CPI.”

We are starting to see the size of the Fed’s balance sheet go down, and the Fed is likely to continue to aggressively raise interest rates in the months ahead.

Both of those moves are likely to add significant momentum to our economic slowdown, and demand will be suppressed.

Meanwhile, economic conditions will rapidly deteriorate as we plunge into an excruciatingly painful recession.

Won’t that be fun?

Unfortunately, even a deep recession will not be enough to tame the inflation monster, because our Congress critters continue to spend money like drunken sailors.

And I am entirely convinced that global supply problems will continue to escalate for a variety of reasons.

So even though demand will be suppressed, inflation is not going away.

I would encourage you to get prepared for the very painful years that are ahead of us while you still can.

You may think that economic conditions are bad now, but the truth is that we haven’t seen anything yet.

The entire system is starting to crumble, and our clueless leaders seem to be all out of answers at this point.

***It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael and my brand new book entitled “7 Year Apocalypse” is now available on Amazon.com.  In addition to my new book I have written five other books that are available on Amazon.com including  “Lost Prophecies Of The Future Of America”“The Beginning Of The End”“Get Prepared Now”, and “Living A Life That Really Matters”. (#CommissionsEarned)  When you purchase any of these books you help to support the work that I am doing, and one way that you can really help is by sending digital copies as gifts through Amazon to family and friends.  Time is short, and I need help getting these warnings into the hands of as many people as possible.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, I strongly urge you to ask Jesus to be your Lord and Savior today.

The post The Inflation Monster That Our Leaders Have Created Is Voraciously Eating Away Our Standard Of Living appeared first on The Economic Collapse.

Steve Martin

STEVE & LAURIE MARTIN - LOVE FOR HIS PEOPLE FOUNDERS My good wife Laurie and I (45 years in October 2022!), through the ministry of Love For His People we founded in 2010, give love and support for our friends in Israel and in other nations with friendship, humanitarian aid, and social media support, along with Steve's messages, and our Ahava Adventures trips to Israel. Steve has also authored and published 35 books. We live in the Charlotte, NC area. We have four adult children, spouses, and eight grandkids.

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