Inflation, Recession, Depression, or Catastrophe: What's Next for the Economy?
Deception Unmasked: Governments, Politicians, and Media - The Unsettling Truths They Conceal from the People
Global inflation has been surging, prompting the need for an honest national dialogue to resolve the most significant cost-of-living crisis in history. This will inevitably impact everyone’s overall quality of life. Particularly alarming is that food inflation has reached record new highs in G7 nations like Britain.
Inflation, by definition, refers to the surge in the price of goods and services as the value of the currency declines. As a result, your dollars or pounds do not buy you the exact items they did last year. This means the weekly cost of groceries has significantly increased from just a year ago, and wages have not risen at the same pace as food costs. The erosion of purchasing power burdens everyone’s household budget, making it increasingly challenging to stretch limited funds and fulfil essential needs.
Given the current global economic situation, it is undeniable that consumer spending will be affected, putting immense strain on every family's ability to afford essentials such as groceries, mortgage payments, fuel for their automobiles, and even annual vacations. We need solutions, but what we get are politicians’ sound bites, hollow promises, blame games, or “give us another few years” Trust is earned, but nearly all current politicians suffer from Pinocchio syndrome and cannot be trusted. Please don’t take my word for it; click these links. Joe Biden Here, Boris Johnson Here, Keir Starmer Here, Rishi Sunak Here, Jeremy Hunt (Here), Nancy Pelosi (Here).
The rampant printing of central bank money printing and reckless government spending have led to the unsustainable creation of vast amounts of non-productive debt that will spark a now unavoidable financial meltdown.
The downturn cycle will feature a surge in loan defaults, bankruptcies, and bank failures. To effectively combat inflation, central banks needed to take early action by increasing interest rates above the inflation rate to slow the ‘overheated’ economy. Unfortunately, the central banks waited years too long to raise interest rates, which will likely cause a severe economic recession, depression, or catastrophe.
A few blogs are in, and you probably already think I'm a pessimist. But I'm not. I'm genuinely not. The good news is that the U.S. Bureau of Labor Statistics recently released its April Consumer Price Index, with some energy price declines. The bad news is that most price trends have risen over the last twelve months, like the food inflation chart below, and while politicians tell you everything is alright, the evidence is against them.
So, inflation is a problem, and it's likely no surprise to you. However, while our politicians and central bankers appear unconcerned, their policies caused today’s inflation and the cost-of-living-crisis. The Federal Reserve artificially manipulated interest rates with Zero Interest Rate Policy, or ZIRP, for over a decade by continuing their massive money-printing programs. The Feds Negative Interest Rate Policy, or NIRP, further distorted risk asset pricing, allowing for large-scale unprofitable malinvestment. Similar programs have been observed in Britain, Japan, and Europe. Now, it is time to acknowledge the consequences of these actions and face the realities, not the dishonest media spin.
None of this should catch us off guard. It's a fact that governments, politicians, bureaucrats, bankers, and the media have been lying to the people for years. But, unfortunately, the imprudent ivory-tower academics overseeing our global central banks remain fixated on applying their misguided academic theories. In the real world, we understand that when a currency is devalued—particularly the currency that serves as the pricing benchmark for all world commodities—all prices will inevitably rise.
It's insanity to expect the same individuals who created this mess to be able to provide us with solutions.
The above chart of Great Britain’s currency is frightening, and Sterling’s current value at 1.2550 Vs. USD remains high. In general, reckless debasement of currency eventually leads to one outcome: rampant inflation. Yet, central bankers have kept the money presses running hot with their relentless printing. We've seen this before, such as the hyperinflation that ravaged Germany in 1923 or the more recent hyperinflation experienced in Zimbabwe.
Interest rates have been outrageously low for a ridiculously long time. And let me tell you, these monetary policies have inflated the most grotesque asset bubbles in history. We're talking about mind-boggling valuations across the board in the stock, bond, property, and credit markets. It's like a history lesson in financial insanity!
We must never forget how Federal Reserve Chairman Ben Bernanke was either 100% wrong or lying about the Great Financial Crisis, and global economic conditions are far worse today, so Powell’s narrative is madness. Watch this video!!
To make matters worse, we lack leadership, accountability, and enforcement of existing regulations. As a result, those central banks are just printing money left and right to save billionaires' investments and bail out those darn insolvent banks. It's a massive Ponzi scheme that benefits the elites while leaving everyone else hanging.
And don't even get me started on these corrupt government agencies and politicians. They're squandering our hard-earned cash, acting like game show hosts on "Who Wants To Be A Millionaire?" I mean, seriously? Who needs politicians like Boris Johnson to become multi-millionaires in months as we struggle to make ends meet?
We need honest, responsible leaders to address the financial crisis and protect their constituents. We must break this addiction to accrue massive debts that can never be paid back. Inaction will lead to disaster. Unfortunately, our current leaders have failed in this responsibility. It is time to reclaim our freedoms, demand change, and hold those in power accountable for their actions. Let us unite our voices and take decisive action. Together, we can make a difference.
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