What inflation? It's coming...

in bitcoin •  11 days ago 

There's already inflation occuring, even if the CPI numbers don't support it just yet

If you go by the government released numbers, we've battled deflationary issues a lot more than inflationary ones...

While that may be true, keep in mind that is also only if you go by the government issued numbers.

CPI inflation is a curious thing as it doesn't include some of the things that matter most to American consumers.

Not only that but the recent revisions to how CPI (consumer price index) is calculated makes it more like a COLI (cost of living index) than a consumer price index.

https://www.investopedia.com/articles/07/consumerpriceindex.asp#:~:text=The%20Bureau%20of%20Labor%20Statistics,gross%20domestic%20product%20(GDP).

Getting beyond that though, there is a very good chance inflation is coming in the not too distant future, even if you go the goverment's numbers.

Why do I think that?

Well, it's pretty simple really, it's already here.

Take a look at asset prices over the past year:

  • Corn up 35%
  • Wheat up 18%
  • Soybeans up 50%
  • Cotton up 13%

image.png

(Source: https://twitter.com/NeilJacobs/status/1349424273673351168)

In the last 3 months alone we have...

  • Lumber up 53%
  • Steel up 57%
  • Sugar up 13%
  • Copper up 19%

More Stimulus only going to accelerate this trend...

As you can see we have seen tremendous increase in the price of commodities. Even if they are coming off of relatively low levels, we can't have increases like this without it eventually being passed on to the final product/good/service.

With more stimulus on the way, I expect this trend to only continue over the next 12-24 months.

What can you do?

If you are reading this, it's likely pretty simple for you, buy bitcoin.

Stay informed my friends.

-Doc

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE BLURT!