Real Inflation is Here to Stay - Are You Prepared for the Fallout?

Unlike the BS posted inflation rates posted by our fearless (aka incompetent) government leaders, real inflation (which is actually looking more like hyperinflation lately) for everything that we need for survival is spiking to dangerous levels.

Problem is, people's wages and incomes are not keeping up.

In addition to the list below, cost of housing, whether you're looking to buy or rent is also spiking to all new heights.

Yet our fearless government leaders and central bankers are either living in denial or, more likely, willingly choosing to ignore the facts by kicking the can down the road hoping that some other government official elected after they leave will at some point in the future will ultimately end up holding the bag to deal with this fiasco.

By doing so, all they will are accomplishing is providing misery to millions of Canadians with no real plans to "fix" this any time soon in any meaningful way, at least not until their hands are tied and they are forced to act.

Historically, the traditional way to battle inflation is forcing the hands of central bankers toincrease interest rates.

However at the present time if they choose to move forward with this course of action they can very well derail an already fragile economy that continues to real from an already very fragile economy as a result of a worldwide pandemic.

Furthermore our country's debt-to-gdp ratio would skyrocket to the point where a huge chunk of our government revenues would be allocated to servicing our national, provincial and municipalities debts instead of funding our social safety net and services that we have all come to depend on and take for granted.

So cutbacks to our Social Services and systems may very well be in the cards, despite our federal government current drive to increase our social system even further (ie. More government housing, National Child Care policy, guaranteed basic income, etc.)

Regardless of whether you agree or disagree with these governmemt initiatives the reality is definitely won't be cash to fund such programs.

They certainly makes for good headlines for our politicians but in reality are only a pipe dream.

Just like a merry-go-round, round and round our politicians bulshit goes, where it stops no one knows!

Rest assured that it will get very ugly in the not too distant future for millions of Canadians, especially those with little to no saved up wealth or hard assets.

"Speaking of inflation, in the raw commodity world let’s take a peek at what’s going on in several markets. Corn futures prices just hit a nearly eight-year high overnight, and are trading above $7.20 a bushel. Soybeans are also at a nearly eight-year and high nearing $16.00 a bushel, and wheat futures are at an eight-year high above $7.50 a bushel. Hog futures are at 6.5-year high. Copper futures are at a 10-year high, Chinese steel futures are at record highs, coffee futures prices hit a nearly four-year high this week, and lumber futures are at record highs. For perspective in lumber, the last bull run in 2018 saw futures prices hit a then-record-high of $659.00 per thousand board feet. This week prices have skyrocketed to $1,420.00 and are still climbing. Many Americans who wanted to build new homes this year are putting it off because lumber prices are too high. Those who think consumer and producer price inflation won’t become problematic down the road my want to ponder this paragraph."

Source: Kitco