Revisiting Inflation in 2018..
I told you this long before the main stream media or all the so called experts were telling you to prepare for inflationary forces. If you go back in the blog you can clearly see where I told you months ago that "yes" the inflationary monster was released.
That is NOT to say that we will see 2007 like ramps in commodities. With central banks trading heavily on the exchanges you cannot expect that prices will be left to their own accord. If this was the case you would have seen oil back above 100 dollar mark long ago. Yes it recently passed the 61 mark for what it is worth and temporarily it has nullified my bias looking for shorts. I still think it is due to correct and correct big but that might not be until sentiment changes radically. That is not the case yet.
Oil is one of the most heavily used commodities and so it dictates much of what happens in the commodity markets. I still strongly doubt that you will see 70 or 80 dollars a barrel any time soon. If another oil boom arrives around it then perhaps you will see it. However with new technology making it easy to extract oil at present levels there is no need for oil to ramp higher.
Where you see inflation the most is where I have been telling you. That is in food. Produced food to be exact. The food that you buy on the shelves of the grocery stores world wide. This is not in relation to say the price of soya beans, wheat, sugar or any other base priced commodity but rather it is in transportation costs to get the products to the super market and to produce it in factories. These prices are going up. This is why you are seeing prices rise. The containers that they ship them in remain the same but they are not filled now. The grams and the litres that contain most items are there to fool you more than anything else. You are most certainly not getting the same amount for your money that you were. This has been going on for the past ten years.
Why?
It is a greater tax base for the government when you spend more on the items you buy to live. It is that simple. Here in Canada with the HST on most items it means more revenues for broke governments. You see you pay for all this nonsense. Hidden so to speak in containers and in taxes you end up flipping the bill for all the extra expense pumped out there by the government. They tell you there in no inflation. There tell you that prices are stable. However if you look close enough you can see the boondoggle quite clearly.
Will prices continue to rise.
Absolutely. With the increase in minimum wage someone is going to have to pay for that. That person is YOU. You will pay for it any way that they can hide the cost to keep you from getting angry although as your money buys less and less you are going to get rather pissed off anyway. You will know that you are being stolen from but now you know where and how.
This is how corporations download costs onto consumers. This is how governments download costs onto their respective populations. Its a con and don't think for a moment that it is not. Inflationary forces whether natural or induced are still a means to swallow unpayable debt and to make coffers larger. However the effect to you is to lower your standard of living.
They have been trying this experiment with Canadians and Aussies with minimal success. Yes Canadians are keeping their heads above water (along with the Aussies) only by borrowing against the value of their ever rising homes. Other than that most would be bankrupt.
The experiment will continue as long as debt continues to expand. If it contracts the game is over and over big. One might ask if there is a limit to how far it can go?
Like any debt it can only rise far enough to when the debtor cannot repay the principle or the interest on the loan. It ends when the borrower is broke. Unless they devise a way to forgive debt loads much more quickly and easier than they are presently doing at some point it will end. Maybe they will figure out a way? I don't really know.
More chicanery based rule bending that forgives loans instantly and resets everything magically for the average consumer. Maybe they will rig the credit scores (they are already doing this). I don't know boondoggles seem to be the norm these days so how long the farce can continue is anyone's guess. Cheers!
That is NOT to say that we will see 2007 like ramps in commodities. With central banks trading heavily on the exchanges you cannot expect that prices will be left to their own accord. If this was the case you would have seen oil back above 100 dollar mark long ago. Yes it recently passed the 61 mark for what it is worth and temporarily it has nullified my bias looking for shorts. I still think it is due to correct and correct big but that might not be until sentiment changes radically. That is not the case yet.
Oil is one of the most heavily used commodities and so it dictates much of what happens in the commodity markets. I still strongly doubt that you will see 70 or 80 dollars a barrel any time soon. If another oil boom arrives around it then perhaps you will see it. However with new technology making it easy to extract oil at present levels there is no need for oil to ramp higher.
Where you see inflation the most is where I have been telling you. That is in food. Produced food to be exact. The food that you buy on the shelves of the grocery stores world wide. This is not in relation to say the price of soya beans, wheat, sugar or any other base priced commodity but rather it is in transportation costs to get the products to the super market and to produce it in factories. These prices are going up. This is why you are seeing prices rise. The containers that they ship them in remain the same but they are not filled now. The grams and the litres that contain most items are there to fool you more than anything else. You are most certainly not getting the same amount for your money that you were. This has been going on for the past ten years.
Why?
It is a greater tax base for the government when you spend more on the items you buy to live. It is that simple. Here in Canada with the HST on most items it means more revenues for broke governments. You see you pay for all this nonsense. Hidden so to speak in containers and in taxes you end up flipping the bill for all the extra expense pumped out there by the government. They tell you there in no inflation. There tell you that prices are stable. However if you look close enough you can see the boondoggle quite clearly.
Will prices continue to rise.
Absolutely. With the increase in minimum wage someone is going to have to pay for that. That person is YOU. You will pay for it any way that they can hide the cost to keep you from getting angry although as your money buys less and less you are going to get rather pissed off anyway. You will know that you are being stolen from but now you know where and how.
This is how corporations download costs onto consumers. This is how governments download costs onto their respective populations. Its a con and don't think for a moment that it is not. Inflationary forces whether natural or induced are still a means to swallow unpayable debt and to make coffers larger. However the effect to you is to lower your standard of living.
They have been trying this experiment with Canadians and Aussies with minimal success. Yes Canadians are keeping their heads above water (along with the Aussies) only by borrowing against the value of their ever rising homes. Other than that most would be bankrupt.
The experiment will continue as long as debt continues to expand. If it contracts the game is over and over big. One might ask if there is a limit to how far it can go?
Like any debt it can only rise far enough to when the debtor cannot repay the principle or the interest on the loan. It ends when the borrower is broke. Unless they devise a way to forgive debt loads much more quickly and easier than they are presently doing at some point it will end. Maybe they will figure out a way? I don't really know.
More chicanery based rule bending that forgives loans instantly and resets everything magically for the average consumer. Maybe they will rig the credit scores (they are already doing this). I don't know boondoggles seem to be the norm these days so how long the farce can continue is anyone's guess. Cheers!
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