Inflation Rising Amidst War Drums

02-28-24
02/28/2024

Alas, As Macron bangs the war bongos, recognize that rising risk of global warfare increases risks to trade, and actual global war shuts down large facets of global trade. Inflation will be disasterous. (AI photo)

As a brief aside, during World War II, shortages of various commodities grew fierce and a few nordic countries, particularly sweden, profited immensley by acting as a middle man to enable trading of American and German goods -- needless to say, inflation was massive and Sweden made a mint. This enabled sweden's socialist model to appear effective for many decades thereafter as they consumed a large pile of cash -- it became a marketing piece for socialism in fact -- and tragically added to the naive acceptance of socialism by many liberals today. Sadly, we have not seen global warfare since then and people forget how painful that is -- and how hungry people get.

Sadly, given the profligate spending of this administration, and TBH, all recent administrations, dollar debasement drives inflation in advance of the global conflicts arising. Hence, the return of heated inflation will occur at the start of conflicts and rise immensely thereafter as the war machine triggers shortages of all sorts of commodities and labor.

Evidence of rising inflation can be viewed in the following collection of tweets, and the final tweet provides a strong financial strategy to maintain wealth as best as possible in such dire times:

#inflation is headed higher, not lower. Q4 PCE rose 3%, exceeding estimates of 2.8%, while the Jan. trade deficit swelled to $90.2 billion, topping estimates of $88.1 billion. Of note, this time #gold actually rose on hotter inflation news.

— Peter Schiff (@PeterSchiff) February 28, 2024

CPI inflation may begin to spike again:

The NFIB survey asks 10,000 firms if they plan to increase selling prices over the next 3 months.

Over the last 3 months, the number of firms responding "yes" has jumped from 20% to nearly 40%.

As shown in the chart below, this survey is… pic.twitter.com/ixmiFw33Fv
— The Kobeissi Letter (@KobeissiLetter) February 27, 2024

Incoming economic data continues to evidence a weakening U.S. economy with strengthening #inflation. So far investors haven't noticed or don't understand the implication. The #Fed needs to raise interest rates, but won't. This is bearish for the #dollar and bullish for #gold.
— Peter Schiff (@PeterSchiff) February 27, 2024