Nov 12, 2021
Summary:
We are currently experiencing the highest inflation we’ve seen in
about 30 years, and I sit down and chat with Michael Busler to
discuss some of the factors that have played into this. This is
something that we experienced back in the 70s, and it is likely
here to stay. Inflation is manifesting in a number of areas
including energy and working wages—fueled by supply chain shortages
and people leaving the workforce to receive money from the
government. Something has to give, and we must show resistance to
increasing prices if we want to avoid further damage to the
economy.
Highlights:
-Is Build Back Better going to happen? We have inflation, an
infrastructure bill, and a lot of other factors
-This is the highest inflation we’ve seen in about 30 years
-The Biden administration and the Federal Reserve say that it will
go away—but this is not necessarily true
-They want the price of fossil fuels to increase, and have carried
this out by restricting the supply
-Energy prices are going to rise in these conditions—manufacturers
are also paying more to get energy
-Energy inflation is here to stay
-Wage inflation is also a major problem—3 million workers left the
job market during COVID and are not returning
-Businesses had to raise the starting wage of these workers to get
them back, and had to raise them for other workers as well
-The government has spend $6 million more than they’ve brought in
in tax revenue in the last 2 years
-These things should not be passed at this time since we’re already
in a hole
-Even when the supply chain issue is resolved, there are still
number of other things causing inflation
-We could end up having stagflation, which we haven’t seen since
the late 1970s
-The 70s was a great time to be a debtor
-As long as people keep receiving free money, they start to expect
it. This mindset doesn’t help with the labor shortage
-Stock prices will usually go up more than the inflation rate
-When you see prices go up, don’t automatically pay them—see if
there are substitute products
-If people become resistant to it, there will likely be less
inflation
Useful Links:
Financial Survival Network
News Max
Michael Busler Twitter
Funding Democracy Facebook
Taxing the Rich to Death with
Michael Busler
Inflation Isn't Going Anywhere But
Up with Michael Busler