We need to be honest about how dire the situation in America really is. We are told that inflation has now hit 7.5%, the highest since 1982 and rising faster than what experts were expecting. That would be bad enough but the situation is far worse than that and if you have bought anything over the past year that is probably obvious to you.
According to Shadowstats.com, which is a great organization that tracks things like the real inflation rate and the real unemployment rate (also much higher than what you are being told because people who are out of work but aren’t actively looking for work are not counted in the official unemployment rate number), the situation is far worse than the phony number that the government likes to report.
The way we calculated inflation changed in the 1980s and then again in the 1990s. Like with almost everything the government does, they try to make reality seem no where near as bad as it is. If we calculated inflation the same way we did before they changed the formula, the real inflation rate would be much higher. According to Shadow Stats the real inflation rate has now hit 15.63% which is the highest since 1947.
This is going to get much worse before it gets any better. The Federal reserve is now hinting at a possible rate hike as early as March. But why is it still near zero even though inflation is skyrocketing? As you can see in the chart below, even if you bought in to the phony inflation numbers, we should be seeing a minimum of a 4% interest rate and I would argue probably closer to 10%. You can not get inflation under control by raising it by .5% like they are expected to.
This is going to get worse. We are very likely going to see a minimum of 10% (the official government numbers) inflation by the end of 2022 with the real inflation rate being above 20%.
A collapse larger than anything we have seen in our lifetime is coming soon. If the Fed raises interest rates to what they would need to to get this under control, it would bankrupt the system and the economy would crash. If you let inflation go and it continues to rise, and it will, that will collapse the economy.
There are several things that you should be doing right now to prepare.
- Pay off anything with a variable interest rate or get it locked in at a fixed interest rate.
- Any loans that you have, especially if they are over 4%, try to refinance.
- Invest 10% of your assets in precious metals like gold and silver.
- Make sure that you are stocked up on essential items like food, medications, etc.
- If you are in the stock market, move some of your money into inverse ETF’s like FNGD. These are designed to do the opposite of the markets, and usually much better. So for example if the Nasdaq drops 2% in a particular day, FNGD would normally rise by around 6%. Hold these investments until the markets bottom out and then sell.
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