INFLATION CRISIS! Prepare for 2022

Inflation is raging across America in 2021. Home prices, gas prices, and meat prices - are all skyrocketing. Labor shortages and supply chain shortages are rampant. Is this the start of a new era of hyperinflation? Or is a Deflationary Market Crash around the corner?

Consumer Price Index (CPI) increased by +5.4% in September 2021, the highest level in more than a decade. Prices for gasoline, oil, homes, used cars, and beef are all up by at least 10-20%. Labor shortages and supply chain disruptions are making the problem worse.

But is the recent inflationary environment in the US Economy a sign of things to come? Is another 1970s-style inflation around the corner? Or could we have a hidden, deflation-induced Market Crash coming?

Heavy government stimulus measures during the pandemic, including PPP Loans, Stimulus Checks, and Unemployment Assistance, pushed $4 Trillion into the US economy over the last year. That, along with Federal Reserve Quantitative Easing, helped to stimulate consumer demand and push prices up.

But now that Government Stimulus is fading, and that the Fed has announced a tapering of QE, will the same type of Consumer Demand sustain itself?

Recent surveys suggest maybe not. US Consumer Sentiment has declined significantly over the last several months. Many Americans now plan to cut back on spending over the next six months in the face of inflation pressures.

That's bad news for businesses and producers, who are dealing with supply chain disruptions, labor shortages, and 20% increases in materials and input prices in recent months. If consumers cut back on spending, and businesses can't pass off the cost increases, that could lead to many of them shutting down (and potentially a big Market Crash / Housing Crash / Crypto Crash).

Ultimately those looking to buy inflation hedge assets - whether they be Real Estate or Crypto - should consider how likely sustained inflation in the US economy is. If consumers cut back on spending, and businesses shutdown, we could potentially have deflation instead.

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CNBC Article: https://www.cnbc.com/2021/09/28/us-consumer-confidence-falls-again-in-september-to-lowest-since-february.html

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0:00 Prices are EXPLODING!
1:41 +5.4% CPI: Highest in Years!
2:33 Gas, Meat, and Cars are Nuts
3:39 Some Prices are GOING DOWN
4:57 1970s Style Inflation: Persistent and Consistent
6:26 How Inflation Works: Producer v. Consumer Prices
7:33 WAGES Need to Go Up
8:39 So Far: Inflation above Wages
10:02 Consumers Cutting Back Spending?
11:08 The Difference between Producer & Consumer Prices
12:30 BUSINESS SHUT DOWN!
13:18 2008: The Last Time this Happened
14:16 Housing Market Impact
15:00 SMASH THAT LIKE BUTTON!

#Inflation #MarketCrash #Recession

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