Inflation

Living on Uneasy Street

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Living on Uneasy StreetCharles Hugh Smith – Yes, the market will rally if World War III didn’t start last night. The market will also rally if World War III does start, because the Federal Reserve will surely lower interest rates.

We chuckle uneasily at gallows humor here on Uneasy Street because we’re still required to maintain an upbeat veneer of endlessly cheerful optimism even as we sense that the forces currently in play are beyond the control of individuals or groups, no matter how powerful they may be, and that these forces will follow a course to an end no one can predict with any degree of upbeat confidence. Continue reading →

The End Game of Fiat Currency: What Lies Ahead [Video]

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The End Game of Fiat Currency: What Lies AheadGreg Hunter – Back in February, when everyone was predicting a Fed rate cut, precious metals expert and financial writer Bill Holter said rates would be going up and not down.  Since that call, the 10-Year Treasury is up more than 30 basis points.  It closed today at 4.67%. Now Holter is still calling for higher interest rates that will coincide with higher gold and silver prices.  Why?  It’s called inflation, and it’s not temporary.

Holter explains, “Foreigners are backing away from buying Treasuries.  That is the only thing that has kept the doors open, so to speak, is the fact we are able to borrow an unlimited amount of money because we are the world reserve currency.

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Navigating Embedded Inflation: The YOLO Spending Dilemma

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Navigating Embedded Inflation: The YOLO Spending DilemmaCharles Hugh Smith – YOLO spending–grabbing what you can right now because You Only Live Once–is now embedded in the zeitgeist. The original narrative–that the pandemic shutdown awakened a broad cultural awareness of the fragility of life and security, and so it’s wiser to buy experiences now rather than later–may be expanding into the complex realm of inflation and inflation expectations.

Covid changed how we spend: More YOLO splurging but less saving

The possibility that the human herd senses trend changes before statistics and the economic punditry comes under the capacious category of the wisdom of crowds: in this line of thinking, YOLO spending may be a reflection not just of a pandemic-instigated change of priorities, but of a growing sense that inflation is now embedded, and so it’s better to spend earnings now before they lose value. Continue reading →

What Makes You Say, “No Way Am I Paying That”?

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What Makes You Say, "No Way Am I Paying That"?Charles Hugh Smith – It’s a well-recognized human bias to feel losses more acutely than gains. Perhaps something similar occurs with inflation. As essentials soar in cost–i.e. non-discretionary expenses such as shelter, food at home, utilities, childcare, healthcare insurance, etc.–our only response is sighing resignation: yes, it’s a ripoff but there’s little we can do about it without making major changes in our lives.

Discretionary purchases are a different matter. The pleasures gained by the purchase are significant enough to be worth the financial cost. But at some point–a point that varies with each individual–the cost is so high that the pain of that expense outweighs the pleasure of the purchase. Continue reading →

New BRICS Currency Boosts Gold & Destroys Dollar [Video]

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New BRICS Currency Boosts Gold & Destroys Dollar Greg Hunter – Seven-time, best-selling financial author James Rickards predicted in his most recent best-seller called “Sold Out” why broken supply chains would cause big inflation. He was right, and he still contends, “Supply chain problems and inflation are not over.”

For an example of the supply chain still being in fragile shape, look no further than the failed grain deal between Ukraine and Russia last week.  Rickards points out, “Putin has been very patient about this.  He had a deal. Ukraine was not living up to their end of the deal.  Putin says we are the ones getting attacked, so, screw the deal.  What’s that going to do to the price of grain?  It’s going to send grain prices up, and it’s already up 10% just in a matter of days.” Continue reading →