Posted on 05/08/2021 9:47:50 AM PDT by catnipman
the current environment of monetary stimulus, and fiscal stimulus in the form of trillions in government spending designed to boost borrowing and spending, combined with supply chain disruptions, has created the perfect conditions for inflation. The average person may not see it yet, but it’s coming. The numbers don’t lie.
Over the past year the entire commodities complex, everything from copper and steel to crude oil, cotton and soybeans, has climbed steadily; the Thomson Reuters/ Core Commodity (CRB) Index is up 70% since last May.
As the largest economies rebound from the pandemic amid massive government stimulus spending, manufacturing and construction is picking up, the newly vaccinated are out and about filling their cars with gasoline and booking flights. China is buying record amounts of corn, more than triple last year’s tonnage, as its hog herd recovers from African swine fever. Grains have gotten so expensive they’re upending global trade flows.
The cost of corn fed to livestock has doubled in the past year while soybean meal is more than 40% more expensive – meat is going up in price, a lot more. Steel prices, low for years due to overcapacity, have bounced higher on account of surging demand, and output cuts in China. Lumber prices have quadrupled due to skyrocketing demand for housing, fueled by rock-bottom interest rates, as well as a shortage of processed wood.
Bad weather including drought is the main culprit for the rising prices of several agricultural commodities.
(Excerpt) Read more at aheadoftheherd.com ...
here's one interesting ETF that covers commodities in general:
https://www.google.com/search?q=Thomson+Reuters+CoreCommodity+%28CRB%29+Index+etf
no doubt there are many other covering more specialized sectors, and i'd be interested in commentary on others ...
personally, i'm not trying to make money per se, but dearly want to hedge my liquidity against the coming inflation ... (btw, i've already got plenty of guns, ammo, petro stocks, precious metals, a house, and don't need or want anymore of those ...)
Something the fed is doing to hurt us all and help China.
https://www.youtube.com/watch?v=vxDCABZvdw0
Yes, there will be inflation. The FED has struggled for about 15 years to keep us out of deflation (which is worse), and has only succeeded now with the “help” of govt giveaways.
I did fine during periods of high inflation in the past, much higher than what we are about to see, which will be temporary. This inflation is a result of COVID and the govt spending to get people thorugh it, plus some additional idiotic spending.
It’s easy to find investments that grow faster than or keep pace with inflation. You already the most common ones. Just live and don’t worry about stupid fear-porn that is just like the weather. (Put on the coat, take off the coat, put one the shorts and get on with life, etc.)
L8r
In a phrase: "demand and recovery from the crash" The price of that index just recovered to the 2018 price plus less than 10%.
Deflation can most definitely be good.
https://www.investopedia.com/articles/markets/111715/can-deflation-be-good.asp
Productivity going up is always deflationary. You are against the very thing that helps moves economies change the quality of life/dollar.
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