The powers that be are trying to front-run tomorrow's official inflation numbers, which are expected to be exceptionally high, by getting out and reassuring the public that the high inflation they are experiencing is all Vladimir Putin's fault. Make no mistake, this is nothing more than propaganda meant to deflect from the core of rapidly rising inflation here in the US and beyond; money printing and forced lock downs of countries across the world which led to completely broken global supply chains.
As we discussed last week, the combination of money printing, terrible energy policy, and broken supply changes is leading to shortages of goods and an abundance of money that is driving the price of everything through the roof. The price rises and shortages have ignited a Global Spring that is beginning to spread like wildfire. This move by the Biden Administration is very telling. They are afraid about what is on the horizon here in the US. The fire is spreading to our shores and they need to get ahead of the ball and try their hardest to make American citizens believe that their woes are solely driven by the boogeyman du jour, Vladimir Putin. Their attempts to redirect the core of the problem on the boogeyman may work on some, but most intuitively know that this is not the truth. They know this because they were experiencing steep price increases well before Russia invaded Ukraine.
There's no hiding from the boogeyman the Biden Administration is actually be afraid of, reality. They seem to be the administration caught holding the hot potatoe as it explodes in their face. Decades of easy monetary policy from the Federal Reserve and hubris from a political class that thinks it can micromanage an economy of 330,000,000 people are coming to a head. The compounding errors of thousands of beurucrats who refused to operate in reality are in the process of absolutely ravaging the economy via high inflation and mass supply shortages.
What will be interesting to see is how hot inflation runs tomorrow and whether or not it continues to rise at that pace in the months ahead. If it does, (and your Uncle Marty believes that it will) it is not hard to see a quick collapse in confidence in the dollar as a viable currency. It feels like we're in the beginning innings of the "suddenly phase".
The world is suddenly going to realize that it has been playing fast and loose for way too long and the consequences of being extremely detached from reality are upon us. The consequences will be deadly in many cases too. People are going to have an increasingly hard time getting food at affordable prices.
Great to have family in town.