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well first of all I don't think we're approaching double-digit inflation I think we're already there I think that if the government was still reporting inflation the way they reported it in the 1970s using the same methodology to calculate the CPI the you know month over month number that we just got which went from 9.1 to 8.5 I think it would be well north of 15 wow so 15.
yeah if we if we kept score remember back in the 1970s they didn't use owner's equivalent rent they used home prices they used actual rent well year over year those things are up 15 to 20 percent whereas owner's equivalent rent is up like five and a half percent that's a third of the CPI right there that is dramatically under counting the cost of shelter but we also have things like substitution that we didn't have back then back in the 70s the basket never changed now they just keep changing the basket they put up they take out stuff that went up and they put in stuff that didn't go up as much so the whole thing is manipulated so we have double digit inflation we're just not being honestly told that we have it but you know you go back to those gas lines of the 1970s that wasn't the result of inflation higher gas prices were the result of inflation the lines and the shortages were the result of price controls and stuff like that which the government May in fact Implement again but Americans have been living with inflation for over a decade it's just that the inflation didn't show up in a dramatic way at you know on consumer prices until more recently because all of the monetary policies that we have pursued since the 2008 financial crisis it can all be summed up in one word inflation inflation was deliberately created not only by the Federal Reserve but by the ECB by the bank of England which by the way today actually reported 10.1 percent year of your inflation uh and the bank of Japan quantitative easing is simply another word for inflation what is quantitative easing printing money and buying government bonds that's inflation inflation is an expansion of the money supply that is literally where the word inflation comes from you get an Old Webster dictionary and you can even find these on the internet and you see how inflation was defined and it's defined as an expansion of the money supply prices going up are just a result of inflation but the government really wanted to change the definition of inflation from an expansion of the money supply to an increase in prices so they can confuse the public as to the source of inflation because if the public realizes that inflation is expanding money supply well they know exactly who's controlling the money supply but if they think inflation is rising prices the government can blame it on the people who are raising prices greedy businessmen or Putin right or somebody like that right they can point fingers at every everybody you know but accept responsibility for themselves so the government has created the inflation and by the way the inflation reduction act will result in even more inflation being created uh by the government that the difference is that for years and years and years the inflation that entered the economy predominantly affected asset prices so why did stock prices go way up inflation why did real estate prices go way up inflation why did bond prices go up inflation why did the price of you know antique cars or you know art why did all that why did everything go up in price inflation why did cryptocurrencies go up if like inflation the FED inflated these massive asset bubbles with all the money that it created but as I was warning going back to day one when they first did quantitative easing when they did QE for the first time they didn't call it qe1 until they had QE2 but when they did the first QE I said that there would be a two QE2 I said there would be a qe3 I said back then that we would have more qes than Rocky movies we've now had four qe5 is coming up that's how many Rocky movies we had but the reason I knew the government would keep repeating it is is because I knew it wouldn't work all they would do is blow air back into a bubble and then every time the air started seeping out they would want to blow more back in because QE doesn't solve the problem it exacerbates the problem but now the problem is that all that monetary inflation has now worked its way through financial assets and it has ended up where I always knew it would in Goods prices consumer goods producer goods and this is where it's going to stay and if the Federal Reserve goes back to QE again which I think it will at because we're already in a recession and they're going to try to stimulate the economy at some point especially when we really start hemorrhaging jobs again when they go back to QE it's not going to look anything like the previous doses uh we're going to have an explosion in consumer prices because inflation is already well above their so-called two percent Target and If the Fed throws gasoline on this fire even with inflation in three or four times its ceiling the markets are going to react very differently I think we're going to have a crisis and a dollar I think the dollar is going to crash and I think bond prices are going to soar it's going to be a sovereign debt crisis and so it's going to look a lot different uh than what we've experienced in the past decade or so
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