News and Political Commentary

The Inflationary Everything Bubble is Now Entering Its Final and WORST Stage

Those interested in building have noticed the huge increase in the price of lumber and other construction materials. Unlike the explosion in the price tag of firearms and ammunition driven by demand, much of the cost differentials of late are purely inflationary, and some are downright speculative and artificial. Hyperinflation has traditionally been one of the killers of economies, and the precursor to accelerated social and political change, as was the case in Weimar Germany in the 1920s. As the SWN has been telling you, similar economic shocks are coming to Weimerica.

The Federal Reserve, a (((private))) bank, has tried to heat up the economy choked back by the covid lockdowns through very low interest rates, making it an extremely hot real estate market and assisting millions of Whites in selling their homes in urban areas and moving to less expensive, Whiter rural regions of the country. When interest rates are low, individuals and businesses tend to demand more loans. Each bank loan increases the money supply in a fractional reserve banking system. According to the quantity theory of money, a growing money supply increases inflation. Thus, low interest rates tend to result in more inflation. This is why, as the Shieldwall Network’s Project New America outlines, NOW is the time for White families to sell their homes and buy land in Ozarkia and similar seedbed White ethnostate regions.

The best firebreak in a hyperinflationary scenario is to hold physical assets. Land. Guns and ammunition. Silver. Food. These are tangible goods which hold their value as the dollar loses its own. It’s not the time to save, as what you save diminishes every moment. Focus especially on things like food and water, the basic necessities that will go up in cost but remain constant in demand, until there are shortages, then demand will spike. Remember last year when you couldn’t find a roll of toilet paper in any store? Next time, it may be a loaf of bread.

So, what will happen when hyperinflation hits and the bubbles pop? This article gives us some indications:

by Phoenix Capital Research Friday, Apr 23, 2021

“As I’ve been outlining for the last few weeks, the Fed and other central banks have finally succeeded in unleashing inflation.

The Fed and its ilk are trying to downplay this by saying the inflation is “transitory,” but who are you going to believe… your own eyes or the words of a Fed official who is literally paid to say things that downplay systemic risks?

Year to date, the price of copper, gasoline, corn and soybeans are all up double digits.

The last two (corn and soybeans) are the most concerning as the Fed’s own research shows that food inflation is the single best predictor of future inflation.

And unfortunately, things are about to get a whole lot worse.

You see, inflation arrives in stages. It’s not as though it enters the financial system and POOF suddenly the cost of everything rises.

Instead, inflation slowly works its way into the financial system in phases.

The first stage occurs in the manufacturing/ production segment of the economy when you see producers suddenly paying more for the raw goods and commodities they use to manufacture/ produce finished goods.

You can see this development in the chart above. The prices of things like copper, gasoline and corn are all spiking higher.

Now, one or two months of higher commodities or raw goods is no big deal, but once you’re talking 6-8 months of steadily rising prices it’s significant. At that point manufacturers/ producers have to start raising the prices of finished goods or face shrinking profit margins

At that point you move into the second stage of inflation: when the prices of ordinary objects begin to increase.

We are now entering that phase as the below headlines show.

  • Coca-Cola CEO says company will raise prices to offset higher commodity costs
  • Procter & Gamble to raises prices on baby care, feminine care and adult incontinence products
  • Kimberly-Clark raises prices on Scott toilet paper, diapers in U.S. and Canada
  • Another furniture maker raises prices to cope with rising costs

This is where things start to get nasty. Once you start seeing price hikes appear in the broader economy, inflation has become systemic. At that point the only thing that will stop it is if the Fed begins to tighten monetary policy (raise rates, taper QE, etc.).

Bad news here too… the Fed has explicitly stated it has no interest in raising rates or tapering QE for another TWO YEARS.

Which means… inflation is going to rage and rage. And the damage done will be measured in trillions of dollars with a (trillions with a “t”)….”

Now, the authors of this data compendium use the information to then encourage you to invest in their gold and silver portfolios. And, if you want to buy some gold or, for ease of transition into goods and services, silver, that you can hold in your hand, that’s a smart investment. We recommend small denominations, like pre 1965 dimes, that are silver, for small purchases, or one ounce silver coins for larger ones. But only AFTER you have made the most important investments of putting back six months of food and water for every member of your family, as well as a good firearm and the ammunition for it.

In the ‘Hasten The Day’ trilogy, as well as in John Wesley Rawles’ survival novels, the cause of the collapse is hyperinflation and its resulting crunch. It may not be as dramatic as nuclear war, but it would be just as effective. Prepare now. It’s an insurance policy for you and your family that, if you don’t have to file a claim on, you can always eat.

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