In October, the IMF (International Monetary Fund) issued a global stagflation alert and that we are seeing a “dangerous divergence”. They downgraded their global GDP growth forecast down by just .1% to 5.9% growth, but warned that this would still mean large downgrades for some countries. The IMF is also warning that inflation is “a major concern” and has called on central banks to be “very, very vigilant”.
The IMF has cut US growth projections by a full percent, down to 6% for 2021. They are also warning that China will see their economy slow from 8% growth in 2021 to just 5.6% in 2022, but that is expected to be revised sharply lower due to China entering stagflation.
Now if you buy this report fully, the IMF is claiming that this is only a temporary problem and that by next year inflation will drop down to 2% again and we will return to normal. I’m telling you that you need to get prepared for a complete collapse of the system. It’s great if we are back to normal by the end of next year, but seeing how the current inflation rates seem to have taken everyone by surprise, I wouldn’t count on it.
Federal Reserve Chairman Jerome Powell has recently claimed that inflation numbers “are likely to last longer than previously expected” and that he is now more concerned than he was previously. The Federal Reserve has announced that they may end up raising rates as early as 2022 because of inflation being higher than expected.
Inflation continues to accelerate and all signs are pointing to it getting much worse. The Producer Price Index is now the highest ever recorded since they started tracking it back in 1929. That means that that cost is going to have to be passed on to the consumer. Year over year, consumer prices were up 8.6% in September 2021 and that rate doesn’t look like it’s going to get much better any time soon.
John Catsimatidis, the owner of the New York City supermarket chain Gristedes is now warning that grocery prices will rise by another 10% in just the next 60 days and that grocery stores are going to stop offering sales and drop many low volume goods.
You can continue to listen to the same people who are now telling you that inflation is worse than they expected but that things will be back to normal next year, or you can get prepared for what’s coming, and that is skyrocketing prices and massive shortages that could last years.