US Treasury Secretary Janet Yellen admitted Tuesday that she was wrong about “the path that inflation would take” in an interview with CNN’s Wolf Blitzer. In 2021 she claimed that inflation posed a “small risk”.
“As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t — at the time — didn’t fully understand, but we recognize that now,” she said. Yellen claimed that inflation running at a 40+ year high is due to “unforeseen circumstances”.
Now according to the “experts” inflation “may” have peaked in March 2022. Really? After them getting inflation this wrong, do you really think that they are right this time?
It’s weird that she mentions “unforeseen circumstances” and didn’t expect the rapid rise in inflation. Even I predicted that inflation was going to skyrocket, over a year ago. But someone whose job is to see this coming, was just surprised by this?
They want to blame Putin for inflation getting out of control, but this started long before Putin invaded Ukraine and anyone who has a basic understanding in economics saw this coming.
According to the USDA, inflation is about to get much worse. They are now expecting a third inflation wave this fall, with overall prices expected to rise another 6.5-7.5% by the end of the year, with some items rising even more. Eggs are expected to rise by another 20%. After the experts have gotten inflation this wrong, do you really think that it’s going to stop there?
You need to prepare for what’s coming because things are quickly getting out of control. Inflation is now over 8%, according to their official numbers, and over 17% if we measured inflation the way we did back in the 1970s. This isn’t going to get better any time soon and will likely effect Americans for years, if not decades.
People want to just dismiss any talk of hyperinflation, but this is how it starts. It’s possible we can turn things around just in time so that we don’t go into hyperinflation, but we are playing a very dangerous game. Even Bank of America warned last spring that “hyperinflation is coming”.
You need to prepare for what’s coming and what may be coming. There are several things that you can do to prepare and I would encourage you to take steps now to prepare. Don’t allow yourself to fall into a position where you end up panicking.
- Pay down and try to pay off anything with a variable interest rate, including credit cards. The Fed is expecting to have to raise rates by .50% several times this year. That means that your interest rate is going to skyrocket and you’ll never get that loan paid off when that happens.
- Try to keep your tank full at all times. There’s a very good chance we do see gasoline shortages before the end of the summer. If your a trucker, try to keep your truck full as well.
- I would recommend buying heating oil now for the winter just in case there are severe shortages going into the winter.
- Stock up on essential items like food, toilet paper, batteries, etc. The cost of everything is going to skyrocket, and due to the diesel shortage you likely will begin to see significant shortages as well. We also have a major fertilizer shortage so going into the fall months, that is going to impact the cost of food.
- Invest in things like gold and silver. Move some of your money into those things so that you have a hedge against inflation.
- I would recommend doing some research into inverse ETFs. These are designed to do the opposite of what the stock market does. Research what the markets have been doing over the last few weeks and then take a look at inverse ETFs. There’s a good chance that these are going to skyrocket when things get really bad, so if you are looking at diversifying your assets before the crash gets any worse, do your own homework to see if inverse ETFs are right for you.
- Invest in things that are going to have value. Art prices are skyrocketing. Also consider buying alcohol or cigarettes, even if you don’t drink or smoke, because we could enter a time when you are going to need to barter. There’s always going to be people that smoke and alcohol could be used for many different things.
- If you can’t afford to prepare or pay down your debt, I would recommend canceling anything that isn’t essential, including your cable bill or the vacation that you might be planning this summer. Things are likely going to get really bad and the more you can do now to prepare for what is coming, the better off you will be.
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