DEGLOBALIZATION MEANS INFLATION

 

The world is rapidly De-Globalizing.  Russia is at war with western Europe.  Grain, Oil and Gas are now Weaponized.

The US has joined the war by weaponizing the US Dollar. 

China has joined the war by buying all the Russian grain, oil and gas it won't sell to Europe.  And China is now launching a campaign to substitue the Yuan for the weapnized dollar througout Africa, and the East (India, Malaysia, Indonesia, Russia and its sattelites)

Meanwhile the US is taking every opportunity to provoke China over Taiwan.

And Europe is still deeply suspicious of the US because of Trump's assinine Trade War, which launched the disruption of Globalization.  They don't know what will happen after the next US election cycle.  Neither does anyone else.

Every single one of these Global factors is Highly Inflationary on the SUPPLY SIDE.  So there's not  a whole lot the Fed or the adminsitration of any country can do about it.

 Food, Oil, Gas and a Competitive devaluation of currencies means INFLATION FOREVER.

And with Currencies, Grains, and Oil and Gas all weaponized  and every Global Block deeply suspicious of every other Global Block the prospects for a cooperation that would alleviate Inflation are NIL.

The only weapon in the arsenal for every nation is to raise rates and hope that by crushing demand inflation will abate a bit.  And probably if rates were raised to well above inflation that would help.  Say to 10 or 12 percent or 14 pertcent.

HA HA HA.   That's impossible because of a 5 decade long global DEBT BINGE.  If rates even get to 4 percent it is certain that the global credit markets will cease to function.  They will freeze.

And the only cure for that is massive bailouts.  Trillions and Trillions of bailouts.

When the economy collapsed and the credit markets froze under Trump they were bailed out with over 12 Trillion dollars.

How much will be needed for the next round of bailouts ?

We'll soon see.  And when we do only Hard Assets will bail out your personal finances.  Because paper assets will all be inflated away.