Inflation is No Longer Transitory

01 Dec

Inflation is No Longer Transitory

Stop the presses!

This just in!

Inflation is no longer transitory!

Not only that, but the risk for even higher inflation has increased.  

Like we’ve been saying…

In congressional testimony, Tuesday (11/30) Federal Reserve chairman Jerome Powell said it is a good time to “retire” the word “transitory” which he has used all year to minimize the impact of Fed-created inflation or dollar depreciation.

Since Powell has been wrong about the duration of surging inflation, we suggest that it might be a good time to actually retire not just the word, but Powell himself, the biggest money printer in the history of the money printing Fed.  

Not going to happen.  President Biden has just reappointed Powell for another four years.

We want our friends and clients to know that it is not anything personal with Powell.  We also wished for the sudden retirements of other Fed chairmen like Yellen and Bernanke.  It is not who they are that troubles us.  It is what they do.

If we can reduce it to its simplest terms, take out the professional jargon and the academic pretense, it becomes clear that their whole operation is nothing more than legalized counterfeiting.

A free and prosperous society depends on people exchanging goods with one another in an honest way.  We acquire the things we desire in life by creating things or producing services that others want.  We give something of value for something else of value.   In this way – in actually serving others – we seek to meet our own needs and advance our individual objectives.  

Now plug the money printing Fed into the equation.  It creates purchasing power for itself and for its cronies, for which nothing valuable has been produced.  When that money is spent, someone is getting something for nothing.  The price is ultimately borne by the other holders of its currency.  Value is quietly taken from them to the extent of the Fed and its circles are given unearned value.  And that is not consistent with a fair and honest economy.

That is why we champion gold.  Its value is real.  It cannot be printed.

We’d like to share a piece by newsletter writer Bill Bonner that makes the same point.  He notes that since March 2020, consumer spending has risen by 13.5 percent “thanks to the feds’ giveaways, stimmies, non-repayable loans, deficits, and other money-shuffling claptrap.”

So nothing of value was produced that enabled all that spending. 

Says Bonner:

Real demand (purchasing power) comes from the output. In other words, you gotta have something to spend. And you get it by having something to sell (labor, product, service, etc.).

In the same period, real output (real personal income fewer transfer payments) went up, too – but by less than 1%.

So demand (based on phony money-printing, not output) rose more than 13 times faster than supply.

What should happen under these circumstances? Prices should rise. Which is exactly what happened. 

This monetary gamesmanship eventually destroys the currency, in this case, the dollar.  As more and more people figure out the game, the currency loses value faster and faster.  Which is where we are today.

This is also why we recommend you speak to a Republic Monetary Exchange gold and silver specialist.  Make sure the Fed does not flimflam you with its something-for-nothing fraud.  Preserve your wealth and profit in this era of no-longer transitory inflation.