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The U.S. Economy Forecasted To Crash Worse than 1929
Peter Schiff is a legend. Peter Schiff called the 2008 financial crisis when others were laughing at him. I remember Peter Schiff calling out Washington Mutual and sure enough the largest mortgage lender and servicer went out of business. This economic crisis is obvious. Consumers are feeling it at the pump, grocery stores, malls, auto repair shops, auto dealers, shopping for homes, surging mortgage rates, and the cost of goods and services skyrocketing like a runaway train. The dollar is becoming worthless because the Federal Reserve Board keeps printing money like there is no tomorrow. Wages are not keeping up with the cost of goods and services. $100,000 salary per year is no longer high income. The cost of goods and services has been rising rapidly in recent years, leading to significant inflationary pressures on consumers and businesses alike. Here are some key points about the current state of inflation and the factors driving high costs:
- Elevated inflation levels: The annual inflation rate in the United States reached a 40-year high of 9.1% in June 2022, as measured by the Consumer Price Index (CPI). While it has moderated slightly since then, it remains well above the Federal Reserve’s target of 2%.
- Supply chain disruptions: The COVID-19 pandemic caused widespread disruptions in global supply chains, leading to shortages of various goods and materials, which drove up costs.
- Rising energy and commodity prices: The war in Ukraine, coupled with increased global demand as economies reopened, has led to a surge in energy prices, particularly for gasoline and natural gas. Other commodities, such as food and metals, have also seen significant price increases.
- Labor shortages and wage growth: Many industries have faced labor shortages, leading to higher wages and increased costs for businesses, which are often passed on to consumers.
- Strong consumer demand: Pent-up demand from the pandemic, coupled with government stimulus measures, has fueled robust consumer spending, putting upward pressure on prices.
- Housing and rent costs: The housing market has seen a sharp rise in prices and rental costs, contributing significantly to overall inflation.
- Federal Reserve’s response: The Federal Reserve has been aggressively raising interest rates to combat inflation, but the effects of these monetary policy actions often take time to fully materialize.
The persistently high inflation has eroded consumer purchasing power and squeezed household budgets, particularly for essential goods and services like food, housing, and energy. Businesses, too, have had to grapple with higher input costs, which can impact their profitability and investment decisions.
While the Federal Reserve’s efforts to cool demand and bring inflation under control are ongoing, the current inflationary environment remains a significant challenge for both consumers and businesses alike.
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1 Reply
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Hate to admit it but Peter Schiff is spot on. Look around you. Mortgage Rates have doubled, Housing market is up 50% or more, car prices are up 40%, insurance premiums are up 40% food and grocery prices is unaffordable.
