Peak Inflation Is Here and Gone
Submitted by GoldFix on substack
Last week Stansberry Investor's Daniela Cambone interviewed Jim Rickards and got his take on inflation. We think this is a solid interview and Jim makes some good reasonable explanations as to why inflation has done what it has. Rickards puts much of the blame squarely in two places: Supply chain problems, and Biden administration policies.
When asked: Why did used car prices go up? Rickards responded with ‘No new cars were available due to chip issues. People bought used cars.’
His explanation for energy problems is equally sensible. The push into clean energy was too fast and poorly executed. Smart energy companies took advantage of that, as did Russia’s Putin.
The thesis essentially is that money printed isn’t the cause of inflation. The sanitization of the printing via RRP and bond allocations dampen the inflationary effect. For Rickards, the supply chains and Biden Administration fiscal policies are the culprit.
The only area he did not touch upon was rents. That shoe has yet to drop fully. Will it be as easily explained? The other point he makes is the Fed may be raising rates into a recession. Enjoy.
"Expect inflation to come down very quickly," due to incoming rate hikes expected from the Federal Reserve, says NYT best-selling author Jim Rickards.
You could see severe, "tightening into weakness," with a potential of three rate hikes next year, he predicts with our Daniela Cambone during the premiere of this year's series, Outlook 2022: The Tipping Point.
In order for gold to gain momentum and rise in price, "the dollar has to get weaker," he says. Having money on the sidelines is vital, according to Rickards, in order to be nimble into the coming year.
When asked about the stored value of holding money in Bitcoin, he asserts that, "when you get to the center, the core of [Bitcoin's] apple there's nothing there."
Poster Comment:
Rickards is talking short term. 1) FED won't do more than one rate increase because the Ponzi scheme will collapse if they raise it even more. 2) Food prices will increase next year due to bad weather, lack of fertilizer and thinned out cattle herds. 3) There are supply chain problems still raising prices in utilities, used cars, oil, propane and natural gas. 4) Long term we will have Hyperinflation when foreigners dumps US stocks, bonds and currency and dump their trillions of dollars into commodities. 5) He did not mention Biden and the Dems over populating America.