How to combat the next wave of inflation

Thursday, 13 July 2023 — South Melbourne

[6 min read]

Dear Reader,

International globalists have long prided themselves as the elites who rule the world.

For years, they have leveraged governments, banks, multinational corporations, knowledge/cultural/non-government institutions and mass media to implement their egalitarian agenda, dividing society and taking away many people’s liberties.

It used to be a conspiracy theory, but the truth is now out into the open.

They want to roll out a digital currency, track and control your consumption patterns, remove borders, redefine words, censor dissent and strip away property rights.

All this to bring upon their ‘utopia’.

They even have a name for it, ‘The Great Reset’.

It seeks to change life and society as we know it and move us into a ‘Fourth Industrial Revolution’.

Luckily for mankind, many are already resisting. The globalist movement has been dealt a fatal blow.

Right now they’re down…but not out.

Their demise depends on how many in the world who’ve lived as sheep find their true identity and come out to fight and defeat these packs of wolves.

Have you found your ‘inner lion’?

The silent treachery of the ruling class

The events like the outbreak of the Wuhan virus, the US 2020 election, media censorship, and the rise and fall of the woke agenda revealed the hypocrisy of the overlords advocating free speech, freedom, equality and peace, though allowing their actions to take these away.

The people once trusted that their leaders acted in their best interest. All that changed as they watched these people fly around the world to congregate and pontificate their ideals as well as enrich themselves while they locked down the world, allowed small businesses to fail and stripped households of their wealth and rights.

It’s one thing knowing that you live in a rigged system and another to realise that they are seeking to drive us to our destruction.

Bracing for a second wave of inflation and impending wealth destruction

Things remain challenging since the central banks unleashed a tidal wave of currency in 2020–21 when governments borrowed from them to pay businesses and households to stay at home. It may’ve served to ease the pain at the time, but we’re feeling inflation every time we go to the supermarkets, fill up our car with petrol or pay the bills.

Inflation occurs because the growth of the currency supply exceeds the growth in productivity and assets. When many weren’t working or producing while there was a massive surge in cash, it stoked an inflation surge.

You may’ve heard how inflation around the world is now slowing down. Overnight in the US, the Bureau of Labour Statistics released the Consumer Price Index (CPI) and inflation data for last month. The headline annual inflation rate fell from 4% in the previous month to 3%. It was 9.1% same time last year.

They’re telling you now that inflation has eased. You already know that’s not the case since your bills are rising.

And if anything, history suggests that there could be a second wave of inflation.

Earlier this week, I listened to renowned mining veteran and economist, Simon Hunt of The Institutional Strategist, talk about this on Palisades Gold Radio. I recommend you listen to it here.

Briefly, Simon believes that the first wave of inflation was brought about by the stimulus spending during the lockdowns, which created a hole in global productivity. The second wave of inflation will come as governments realise that they’ll need to cut rates to try to plug the hole again. With the global rush to push an energy revolution, this will lead to a commodities boom. That could stoke inflation if rising input costs push up the price of everything.

To further complicate things, the Russia-Ukraine conflict has divided the world geopolitically. The North-Atlantic Treaty Organisation (NATO) sanctions against Russia have meant that the commodity-rich nations not aligned with NATO will hold the cards which could stifle countries aligned with NATO, who consume more resources relative to domestic production.

All these could cause an unprecedented economic shock to the global economy.

So why should you consider Simon’s view? His career has spanned over 65 years, and he’s conducted business in several continents, accumulating an immense wealth of experience and insights. He’s also got his finger on the pulse of China, which he writes about in his ‘Frontline China Report Service’.

If Simon’s views are correct, then you’ll want to focus your efforts on preparing against a deeper recession and its destructive impact.

Your turn to find your ‘inner lion’

The fiat currency system is run by the same den of wolves seeking to fleece you. You don’t have to play in their game and end up as their dinner.

Store some in gold. Take part of your wealth out of their system to stop inflation from sapping away at your livelihood.

As things become harder with the global economy, the ruling class will try to clamp down on the people to make them pay. With the right preparation, you’re protected from their plunder.

There’s another way to help you prosper with gold and other precious metals as the system breaks down — mining companies.

Investing in mining stocks could possibly multiply your returns, though not without its added risks (and excitement!) of course.

I’ve spent a decade researching into how to profit with gold mining stocks and it’s delivered some solid results:

If you want to get started building your precious metals portfolio and protect part of your wealth from the system, click here to learn more about my investment service, The Australian Gold Report.

Or if you want to read about potential opportunities in the anticipated commodities boom, check out the investment service Diggers and Drillers.

This is the time to cast aside your meek exterior to assert your rightful form!

God bless,

Brian Chu,
Editor, The Daily Reckoning Australia

Dear Reader,

‘The last administration alone — the last guy who served in this office for four years — increased the total national debt by 40% in just four years.’

- Joe Biden, remarks on the national debt ceiling in Valhalla, NY, 10 May

Fox News leads off:

‘The US national debt has increased by US$1 trillion in the five weeks since President Biden signed a bill into law that effectively turns off the debt ceiling until 2025.

‘On 3 June, however, Biden signed legislation reflecting negotiations with House Republicans that requires a small spending cut next year and allows unlimited federal borrowing until 2025. With no debt ceiling in effect, federal borrowing jumped more than US$350 billion in a single day and crossed the US$32 trillion mark in less than two weeks.’

Whee! It’s hi-ho…and off to the poorhouse we go!

A dereliction of duty

And who’s to blame? Donald Trump, who cut taxes and increased spending more than any president in history? Or Lyndon Johnson, who set the stage for the US’ rush to bankruptcy with his ‘guns and butter’ programs — a war in Vietnam and the Great Society at home.

Or was it Ronald Reagan? Or Barack Obama?

Or all those clowns in the House of Representatives who are supposed to be watching over our money?

They dropped the ball. The Constitution gave them the ‘power of the purse’. But they’ve been derelict in their duty to protect the finances of the US Government. And now, here’s the Committee for a Responsible Federal Budget:

'…federal spending as a percentage of Gross Domestic Product (GDP) will grow to 29.1% over the next three decades. Driving a large part of that growth is spending on interest payments to service the national debt.

‘Net interest payments hit a nominal dollar record of US$475 billion in Fiscal Year (FY) 2022 and will nearly triple by FY 2033 to US$1.4 trillion, growing to US$2.7 trillion by 2043 and to US$5.4 trillion by 2053. As a share of the economy, net interest will rise from 1.9% of GDP in FY 2022 to hit a record 3.2% by 2030 and more than double to 6.7% by 2053.

‘By 2051, spending on interest will be the single largest line item in the federal budget, surpassing Social Security, Medicare, Medicaid, and all other mandatory and discretionary spending programs.’

Late, degenerate empire

Wait. Is this something to worry about?

Nah…it’s just business as usual. That is, it’s the business of a late, degenerate empire, squandering its most precious assets while desperately trying to ruin itself with the two sure-fire death-dealers — inflation and war.

And who complains? Who sounds the alarm? The media…hardly a word. Congress…where have they been; isn’t it their job to make sure this doesn’t happen? The public? The voters? The bankers? The Fed?

Nah…nobody really cares. Because everyone knows where this train is headed, and nobody wants to stop it. Instead, they want to get what they can, while they can. Buy Nvidia…beat Russia…stop China…and make sure we use the right pronouns…recycle our trash…and by all means, don’t doff our hats and hang our heads when Stonewall Jackson’s name is mentioned.

Rick Rule interviewed us yesterday. He asked an interesting question.

‘Could we be wrong?’, he wanted to know.

‘Maybe, despite all our worries and criticisms of the powers-that-be…and all the theoretical effects of debt, money printing, deficits, bad trade policies and dumb governments… despite the approaching bankruptcy of the US Government…and the decline and fall of the American empire…

‘…maybe it won’t happen.

‘Maybe people will invent new technologies…new industries…and new ways of doing things…And those new things will overpower the dead, destructive weight of the political class.’

Our reply:

Yes, of course people will invent new things. We’ll have new movies. New books. New apps. New gadgets. And some of them will be commercial successes. Some stocks will go up. Some people will make money. And won’t that be nice?

But there are forces of history…boom and bust…rise and fall…birth and death. These ‘megapolitical’ trends will be decorated and enlivened by people who invent things and try to reform the system, but the deep currents of history won’t stop.

There are always two opposite forces at work. One leads us forward — with win-win deals, aggregated in free markets, that lead to new wealth and civilised progress. But the other pulls us back to barbarism…with politics, violence, fraud — and win-lose deals that make us poorer.

If we’re right…the win-losers now have the upper hand. They are tightening their grip…on the press…on our thoughts and on our money…on trade…on just about everything. And while they haven’t totally let slip the dogs of war…they are clearly headed for the kennel.

Are we wrong about this? We hope so.

Regards,

Bill Bonner,
For The Daily Reckoning Australia