Feb 17, 2022
Summary:
I have Wolf Richter on the show to discuss some of the direct
effects of inflation and how they’ve been impacting our day to day
lives. Not only does this phenomenon turn savers into spenders; we
are ultimately spending more regardless due to property rents
spiking, used automobiles going up in price, and shortages of
materials/laborers. The list goes on—tune in to hear more about
what has changed in the economy and some of the forthcoming shifts
to expect.
Highlights:
-Just yesterday, the wholesale price index was up 9.7%
-Is the inflation rate really running double what the government
says it is? It’s certainly higher
-Inflation has a pervasive effect, turning savers into spenders
-There’s an above average supply of used vehicles, but prices
continue to spike
-Rents have been going up significantly, especially in metropolitan
areas
-Asking rents have spiked
-Building a home requires a lot of planning ahead in consideration
of the required resources and labor; it’s not as simple a process
to start as it used to be
-There are shortages of materials/laborers
-Higher wages won’t solve all problems, but are definitely part of
the equation
-Some of the labor force has stopped working and started living off
their crypto earnings
-We will probably see a downward trend of asset prices
Useful Links:
Financial Survival Network
Wolf Street
Markets and Bonds with Ross Clark;
Truckers and Cryptos with John Rubino; Autos and Real Estate with
Wolf Richter.
Real Inflation, Could Interest Rates
Rise Faster Than Expected? Wolf Richter – Dec. 29, 2021