As bad as 8.5% inflation is that number doesn't tell the full story. From March 2021 to March 2022, fuel oil rose 70%, gasoline increased 48%, electricity went up 11% and natural gas shot up over 21%. (I think those reported figures are even low.)
There's no sign of slowing inflation. Producer prices at the wholesale level rose 11% over the past year. If inflation continues to build on itself the shit will eventually hit the fan!
Rising prices have caused many Americans to feel suddenly cash-strapped and more dependent on credit cards to make ends meet. With the increase in household borrowing, household debt rose to a record $15.84 trillion at the beginning of the year. So on top of inflation and more debt, the consumer is being hit with much higher credit card and mortgage rates!
The next wave to come is the effects of declining wealth. The Liberal Left loves to criticize the validity of "trickle-down economics." But watch how fast the massive drop in the value of equities and bonds trickles down on the middle-class.
The economy is a train wreck - with the cars just beginning to pile up into and top of one another. We benefited from coming out of Covid, but that bounce back was inevitable, especially because the economy was incredibly strong going into the pandemic. The positive trends that the Biden Administration inherited are going in reverse.
Wait till the panic button is pressed. That is when bad goes to much worse!!
This is all a setup for the "Great Reset." We are not in "crisis" mode yet -- but we will be. The upcoming crisis will be systemic and international. It will be a crisis that no country alone can fix. It will require Central Banks around the world to completely restructure the debt of countries and move to full fledged Modern Monetary Theory.
Central Banks, Treasuries and the Government leaders are preparing to issue Central Bank Digital Currencies to replace "cash" (money) as we have known it for centuries. When they do the conversion is when they will reformulate the debt of countries around the world.
Everyone will have a new digital identity to which all money in accounts is assigned. The money will be programable, which is to say the money can be controlled by the government in ways that money could not previously be manipulated. This way, if governments, globalists and the super elite want consumers and businesses to spend less or more on something, they will have financial tools to alter behavior and consumption.
When will this all happen? I predict that within ~6 months the panic botton on the economy is pressed. The inability to carry our Federal Debt will be the major focus. Then it will take another 6-12 months for the "Great Reset" design to be finalized.
America won't be alone in this. Europe, Japan, China and other countries will all be caught up in this crisis. This will be a crisis of the magnitude that rivals the Great Depression.
Is there a world leader who will save the day? One the world will trust who steps up to stem the fall and restore prosperity? If history repeats itself, the solutions they offer may be even more frightful than the crisis!
