U.S. Producer Price Index Escalation

Between 70-80% of manufactured goods that are imported into the United States comes from four countries – China, India, Mexico, and Brazil. The U.S. dollar lost about 16-18% through the first week of May against these foreign currencies. China, which is one of the largest producers of manufactured goods, is starting to increase its pricing models because of inflation, as well as their economic slowdown from their real estate market. The Producer Price Index is going to escalate. What we will see in the near future is hyperinflation, stagflation, adjustable mortgages will go from 2.5% three years ago to 7-8%. The economy is going to go south with no end in sight.