The experts don’t want people to panic so they have conjured every excuse for the current inflation, but things are anything but fine.
By downplaying rising inflation for almost all of 2021, Jerome Powell and other Fed officials have grossly underestimated what will be a much longer-term inflationary trend.
And with consumer price inflation currently rising 8.5% over last year, we can definitely say the Fed “experts” were wildly wrong (or intentionally misleading the public).
Regardless of their intent, the economic intelligentsia in the U.S. have engineered a financial quagmire that most citizens won’t be able to escape from for at least the next decade.
“This is a total farce.”
James Hickman doesn’t think the current inflationary economy is going to cool off in the near term:
“This is a total farce. Many key inflation drivers (including conflict, long-term demographic trends, and major shifts in global manufacturing) are chronic issues that aren’t going away anytime soon.”
Unless you’ve been living under a rock, you’re already aware of the Russia-Ukraine conflict that the interventionist U.S. Government has stuck its nose in.
I won’t repeat a “play by play” of that conflict in this short message.
But economic sanctions on Russia combined with the Biden Administration’s energy policy have both played a part in putting a noose around a major part of the U.S. economy.
Jim Rickards recently gave one example of how the sanctions on Russia are causing price inflation: “Russia and Ukraine together produce about 25% of all the wheat exports in the world. Well, Ukraine can’t export the wheat because there’s a war going on and Russia can’t export wheat because of the sanctions.”
The result? Higher prices at the producer level, which eventually trickles down to the consumer in the form of higher prices on any product that uses wheat.
Right now, inflation at the producer level (called producer price inflation) is running just as hot as consumer price inflation at 11.2% as of March.
Since inflation is non-linear, both consumer inflation and producer inflation running hot means prices aren’t coming back down to earth anytime soon. As prices climb, people are going to tighten their belts and spending will slow down.
Furthermore, consumers will have less money to save as they put more toward basic living expenses. This is already showing up in the data as Market Movers reports that “the personal savings rate fell to 6.2% in March, the lowest since 2013.”
Rising inflation and lower savings rates signal bad times ahead for the average consumer. And as bad as this is, it’s not the only signal of an upcoming “down phase.”
Not to mention, the Fed’s monetary policy of “printing money” has resulted in a record balance sheet that sits near $9 trillion. They can’t unwind their balance sheet without wreaking havoc on the U.S. economy.
Summing up, the ingredients for an “economic hellscape” are all present, so the only question you should be asking yourself right now is: “Is my money going to be safe?”
How to Keep Your Financial Options and Exits Open
Since a more serious economic downturn appears likely, now is the time to get prepared in case you have to “head for the exit” before everyone else does.
And I’d like to show you how to do that…
I’ve been living the life of a “digital nomad” since 2001. During that time, I’ve learned dozens of extremely valuable lessons about how to keep your financial options open and maximize your freedom.
I created GWP Insiders to share those lessons.
In fact, I’ve recently overhauled the entire membership area and relaunched it as a new and improved GWP Insiders 3.0.
Why should you seriously consider becoming a member?
GWP Insiders provides a complete roadmap of internationalization strategies and resources for location-independent entrepreneurs and investors looking for answers to tax, residency, wealth, and lifestyle questions.
When you become a member of GWP Insiders, you’ll have access to some of the most valuable and closely guarded secrets the wealthy use to protect and grow their wealth. For example, you’ll discover:
- The biggest tax haven in the world (most NEVER get this right).
- How to create offshore bank and brokerage accounts to store and grow your wealth safely. (And away from the view of prying eyes).
- How to structure your business to minimize or eliminate taxes.
- Get real boots-on-the-ground advice from the people and professionals who live, work, and invest all over the world.
- How to obtain citizenship and a second passport in less than one year. (This is a huge benefit.)
- Access our exclusive worldwide network of legal professionals you can trust.
- The best opportunities for investing in foreign real estate.
The most valuable part of membership is the ability to schedule unlimited 1-hour consultations with me to get your specific questions answered.
To live freely is divine,
Location Independent Entrepreneur
P.S. Right now the U.S. appears to be heading for its worst economic crisis since 1929. So I would like to offer you a way to preserve as much buying power as you can and keep your money safe…
To that end, I would like to invite you to become a GWP member and learn strategies for keeping your options (and exits) open…