Rising Dollar, Rising Rates, Rising Instability - Andy Schectman #5561

Summary: When the price of gasoline doubles and the overall CPI goes up 9.1%, something seems to be wrong. Everything is doubling and tripling, and the Fed has yet to tackle the true root of inflation. Andy Schectman sits down with me to talk about this, and we compare today’s inflation to that of the 80s. If it were measured in the same way as it previously was, we would see an inflation rate of about 13.6%. The entire system is experiencing major fragility, and the effects of this have only just begun. Tune in for more expert insight from Andy. Highlights: -When was the last time you saw the price of something go down? Andy did see $4.85 gas, so it has gone down slightly, but prices are steadily rising for the most part -The originally reported core CPI in 1980 was 13.8% -Our 9.1% inflation rate measured the way it used to be measured would be 13.6% -In 2020, we had a rate of 1.4%, so the current inflation is 6.5 times more intense than it was two years ago -The federal funds rate has risen, but we’re not getting tough on inflation -Thanks to low interest rates and easy money, assets have become extremely distorted (stocks, bonds, real estate) -If they raised rates to 9%, you would see the immediate implosion of the markets -The dollar is trading at a premium to the euro and yen -With a debt based currency, everything is going to unravel -The real manipulation has always centered around interest rates -With low interest rates, companies and consumers take risks that they wouldn’t otherwise take -We’re seeing a move away from the dollar hegemony because other countries are wondering if they are next Useful Links: Financial Survival Network Miles Franklin