Economic Tail-Chasing

The level and rapidity of inflation has "surprised" no one but the "experts"

Even if you, like me, believe that the main reason we have not seen high inflation for the past 30 years despite record (and constantly growing) debt is that we were in a deflationary cycle spurred by the Chicoms and a galactic under-valuation of rising technologies, it appears it is time to finally pay the piper.

Course, people have said that all my life, for the last 50 years at least: “We can’t keep on with this level of debt/deficits.” We could, and we did.

Til now.

Currently the inflation rate is at a painful 6.8%. And there is nowhere in the world to go to escape it, even if you were willing to put up with the vaxiopaths and the maskiopaths in Europe or Japan.

Inflation is above 5% in most of the Euro nations. With the Demented Pervert throttling gas and oil production from the biggest energy exporter on earth, it’s likely energy costs will drive the Euros’ inflation level higher.

But as Bill Hester in Hussman Strategic Investors notes, virtually all the experts were caught by surprise. This in itself is . . . no surprise. After all, who can remember a single jobs or economic report from the gubment where it was “in line” with expectations? It’s always below expectations (if a DemoKKKrat is in office), or, when Trump ran things, above expectations. But let’s not get distracted from the main thing, which is the main thing.

Inflation is with us now, and under the Rutabaga will not recede because he’s too stupid to understand that we have inflation now. He seems to think that because the gubment makes “child care” cheaper for some people, that mysteriously offsets the cost of gas, heating oil, housing, and food for all people.

Indeed, housing costs continue to rise in both private homes and rental properties.

And global credit tightening with rising interest rates is already happening. When the Fed gets serious, as it must, and as it will, suddenly everyone who has been living off their investments will be in for a hard candy Christmas.

Not to pick on Hester, who is very good, but he claims the rising prices are “already more persistent than nearly anyone would have guessed six months ago,” Well, no. Many of us said that this inflation now would be here to stay, or at least until Donald Trump is reelected with a MAGA Congress. Even then, folks, the Fed will need to “Cry Macho!” if it is going to rein in this runaway train.

Larry Schweikart

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