"Hello, my name is Jerome Powell. I am the Federal Reserve Chairman for the United States and an Inflation Denier."
Rest of America: “Hello Jerome”
Yep! The Federal Reserve has its head in the sand- like those cartoons where an ostrich buries its head in the sand, hoping to hide.
Face facts, Jerome!
Lumber prices are at an all-time high.
Food prices five year high
Gas on the rise
Home values had the most significant increase since 2006
Why is the Fed in denial?
Reason one: Jerome wants a second term and wants to wait to rock the boat before his confirmation in February 2022. This includes keeping the cost of the President's Infrastructure plan the same. You want to avoid raising the cost of borrowing Two Trillion dollars by raising interest rates.
Reason two: The Federal Reserve, The Treasury, and the IRS all want massive inflation. Why? Because the economy heats up, companies hire and boost wages to meet the cost of inflation, and then the IRS can collect higher taxes. Higher tax revenue narrows the cost gap for future programs the current administration wants to create.
I have a dark third theory, so I hesitate to publish, but I am optimistic in the near term.
The current policies of the Federal Reserve, including those of the Federal Government, will create the most inflation since President Carter.
What can we do?
We can invest in companies and strategies to profit from inflation.
First, we can look at agricultural companies tied to food, wheat, corn, and phosphorus.
Secondly, we can add to those same strategies companies and investments in manufacturing commodities, like iron, copper, steel, oil, gasses, etc.
No, not alternative energy; those stocks are ultra-high speculation, and you don't need to go this route to be a part of the generational transformation into clean energy.
Don't believe me? Where do you think batteries come from? Lithium, where do carbon fiber and resin come from? Petroleum.
The best yet, how do we charge electric cars? Utility plants that runoff coal and natural gas.
Commodity-related companies that either:
Mine
Frack
Produce
Convert
It is the top place to profit from high inflation, not technology and alternative energy companies!
From one consumer to another, prepare for a reality check at the store and invest wisely.
Christopher Lakian