Inflation

Last week I saw an interesting video on YouTube. In it the host made an interesting analysis. He said when the Federal Reserve creates money and gives it to the banks it is past on to lenders and doesn't really effect the economy. But it is instrumental in raising stock prices. 

 

However when they give it directly to the people (Stimulus payments). It gets spent in the real economy and generates real inflation. This is also going to happen as we see a $15 minimum wage start. 

 

Here is the dirty little secret about a $15 minimum wage. It won't make a difference in changing anyone's life. Why? Because businesses will also increase prices to off set the lose in profits. So everyone will be back at square one. However for those on a fixed income the results of inflation will be devastating. As they lose purchasing power.

 

But...A major cause of inflation has already been put in motion. Biden's war on domestic oil will have devastating effects on the economy. Not just the lose of jobs. But also the fact that imported oil is more expensive. Not only will diving cost you more. But just about everything is made from petroleum (oil). As it goes up in price everything it is used to produce will too.

Look around you, everything is made of plastic. Cell phones, TV's, computers, medical and industrial supplies. The list is almost endless. Including your cloths. Many are made in part of polyester and yes that's  an oil by product.  

BRACE YOURSELF, WE ARE IN FOR A RUFF RIDE!