The news and the radio all are finally catching up to the realization that all of this quantitative 'easing' is a bridge to no-where. Recently 'the bureaucracy' is surprisingly collecting more taxes than what they projected. Election promises are always about 'not raising taxes'. What a great platform to get elected on am I right?
To be fair politicians have no idea about how they actually collect their taxes. Usually with 100+k salaries and a pension to boot why would anything need to be reality. Economies from neither micro or macro perspectives are irrelevant. The money just comes in magically. Why else would they worry about lockdowns? Just as easy as the tax comes in, it must be just as easy to re-distribute wealth!
The greatest wealth transfer is happening before our eyes and it's difficult to find the strength to continue fighting it. Sure we can hedge and buy buffers incase of sure meltdown. Gold and BTC will surely save us. The reality is inflation for goods will continue for years albeit a war to end all wars. Our comfortable lifestyles is being downgraded and there is much much more to come.
The tax rate for bread can remain the same but if it costs $100 for that bread it surely is simple to pay back the public 'debt'. Politicians could care less about their lockdown supply crunches. Bottlenecks to production are all over the place. I see it in my business when it comes to our supplies and shortages for products are everywhere on store shelves. You pay more when the supply is down. The inflated price is taxed at a similar rate but at higher prices. Like magic the government coffers go up!
I'm a collector for certain vintage comics and even for casual reading. The nerds stuck at home with stimi-cheques have given vintage comics a 35% boost in prices. Comics are amazingly accurate in terms of tracking inflation. Detective comics used to be 5 cents! Now look at the prices. Recently just the 'bags and boards' comics optionally can be purchased with are at a low supply. The PPE trade was great for a year, but it diverted those resources away from other sectors. Once a bottleneck appears, it's next to impossible to stop the next one.
The real bottleneck was and is from the lockdowns. Stopping an economy in it's tracks doesn't look orderly like this:
It looks like this:
This is what a bottleneck looks like in terms of manufacturing and even shipping. Once again China has close one of it's busiest ports because of another outbreak.
Take some time to digest this because it takes some time for the world to digest it on the consumer shelves. Inflation is not stopping. Talk of tapering the already maddening 'quantitative easing' or money printing isn't even talk about stopping the printing. It's a head fake. Eventually we will come to a point of run-away inflation and the CBCD come in. That simply means your blockchain food stamp will be arriving shortly.
I don't have a crystal ball nor does anyone else. If I am a simple guy I'm sure central banks are way ahead of me. My only recommendation is to stock important assets we know will go up in price. That includes food, clothing, gold, silver, and even crypto's. These things will go much much higher. Real-estate I have purposefully left out. Land is important to acquire, but the prices are already unaffordable. As prices go up for food and clothing, less is left over to even purchase real-estate. This could cause a drop in prices, or prices will continue to climb to inaccessible heights. Only the big corporations could gobble up that land at cheap interest rates. Only the banks lend to the big boys; zombie corp included. This is the great reset.