The mainstream doesn’t care about inflation. In fact, we are told that inflation is muted.
And that’s true, at least in some ways. We haven’t seen the consumer price index (CPI) rise you might expect as central banks pump trillions of dollars created from nothing into the economy.
But just because the government figures don’t reflect it – yet – doesn’t mean there’s no inflation. In fact, defined correctly, increasing the money supply East inflation. And we certainly have a lot.
The point is, inflation is there and will certainly end up in consumer prices.
Peter Schiff has said that we cannot forever avoid the inflationary impact of money printing. In an interview on RT last month, he said that ultimately the price of everything went up “because the value of the dollar, the money people use to buy things, goes down.” So everyone is going to need a lot more money to buy what they need. “
In a recent interview with Kitco News, Degussa chief economist Thorsten Polleit agreed with Peter, saying people should be concerned about inflation because it is a major threat looming in the world. ‘horizon.
The Federal Reserve was already increasing the money supply before the pandemic, but the response to COVID-19 has put the impression of money on strain. As governments stalled the economy in response to the coronavirus, the Fed launched what many called “QE infinity” and increased the money supply at a record pace. But the Federal Reserve is not alone. According to a recent IMF report, central banks around the world have injected $ 12 trillion into the global economy.
Meanwhile, people are asking “where is the inflation?” Polleit said it was there. Just look for it.
Just look at the stock markets, real estate and bond prices. At present, inflation is having an impact on asset markets. But the increase in the amount of money printed in the United States as well as in euro zone inflation will sooner or later push up consumer prices as well. It may take some time for asset market inflation to show up in consumer prices, but eventually it will. “
Most people reflexively agree that money printing and stimulus are necessary to deal with the economic impacts of the pandemic, but Polleit reminds us that printing money does not create wealth. It simply depreciates the currency and erodes our purchasing power.
Money is only a medium of exchange. A nation’s wealth comes from the products it produces, the apples it grows and the houses it builds. More money does not make a nation richer. “
With an economy mired in a recession, millions of people out of work, and many governments still gripping their savings, products are not produced and services are not rendered. “Right now there is very little production, so very little wealth is being created,” Polleit said.
But inflation isn’t bad for everyone, at least not in the short term. Wealthy investors with large portfolios see their wealth grow thanks to asset inflation. The stimulus and money printing blew up a huge stock market bubble. Real estate prices have also skyrocketed. But your average consumer is not reaping the benefits of asset inflation. Instead, they see their purchasing power eroded. As Polleit said, “inflation benefits some at the expense of others”.
As the amount of money increases, it has various effects, but ultimately it will impoverish the vast majority of people.
So how can we mitigate the pernicious effects of inflation? Polleit has declared its own gold. After all, the yellow metal has thousands of years of history as a store of value.
Holding gold is the best way to reduce risk and improve the return on your portfolio. Holding gold, especially at current prices, is a wise thing to do. “
President Trump warns the nation not to be afraid of Covid-19 and says the United States must reopen now!
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