Get Ready for Hyper-Inflation By Chris Knight (Florida)
Beijing Biden, like all communists in the West, needs to print currency to cover their radical programs. Actually they don’t print the notes, they simply do computer transfers, but the metaphor of the printing presses running hot is too old to resist. Anyway, hyper-inflation is coming, making survival for mainstream Americans ever more difficult. Just ask the Wall Street Journal.com, which by some miracle let me past the pay wall, as I don’t have spare dollars to pay for such things nowadays, due to inflation eroding my pitiful pay. Everything is spent on supplies, food, toilet paper, more toilet paper. Did I say toilet paper? Oh, there is no more ammunition here in Florida. Some rotters bought it all up. Charles!
“Americans should brace themselves for several years of higher inflation than they’ve seen in decades, according to economists who expect the robust post-pandemic economic recovery to fuel brisk price increases for a while.
Economists surveyed this month by The Wall Street Journal raised their forecasts of how high inflation would go and for how long, compared with their previous expectations in April.
The respondents on average now expect a widely followed measure of inflation, which excludes volatile food and energy components, to be up 3.2% in the fourth quarter of 2021 from a year before. They forecast the annual rise to recede to slightly less than 2.3% a year in 2022 and 2023.
That would mean an average annual increase of 2.58% from 2021 through 2023, putting inflation at levels last seen in 1993.
“We’re in a transitional phase right now,” said Joel Naroff, chief economist at Naroff Economics LLC. “We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.”
The inflation measure—the Commerce Department’s core price index of personal-consumption expenditures—jumped 3.4% in May from a year earlier, the biggest increase since the early 1990s.
Swift AscentEconomists' 2021 inflation forecast hasincreased sharply as the U.S. recovers fromthe Covid-19 pandemic.Core personal-consumption expendituresindex forecast in each survey monthSource: Wall Street Journal Economic ForecastingSurvey
%Full Year 2021 (4Q/4Q)Full Year 2022 (4Q/4Q)Sep 20Dec 20Jan 21Mar 21Apr 21Jul 211.52.02.53.03.5
What Mr. Naroff and the other survey respondents describe is a generational shift from the lower inflation of the past two decades, a shift that could create new challenges for households, policy makers and investors who came to expect inflation closer to or below 2%.
If the economists prove correct, Federal Reserve officials might have to raise rates sooner or more than they expect to keep inflation under control.
The Fed’s preferred inflation gauge—the overall PCE index, which includes food and energy prices—rose 3.9% in May, nearly double the central bank’s 2% target. The Fed, in a report released Friday, repeated its view that inflation has picked up this year due to bottlenecks, hiring difficulties and other “largely transitory factors” related to the economy’s rebound from the effects of the pandemic. Most officials, in projections released last month, believed inflation would decline to around 2% over the next two years, though there was greater uncertainty over how quickly they might need to raise interest rates to get inflation there.”
It does not matter much whether this coming tsunami of inflation is planned or a mechanical product of present conditions, we little people need to survive it. Prepping should have started yesterday.
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