Will Food And Other Prices Keep Going Up?
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Will Food And Other Prices Keep Going Up? #inflation #deflation #pricerises
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In today’s video, you’re going to learn why food and other prices have gone up so dramatically this year
Then we’ll move into whether these price rises will continue or will they go back to normal
We’ll cover all this, as well as the big question everyone seems to be wrestling with atm: Inflation, Deflation (Steve Van Metre) or did one guest really say hyperinflation when he was interviewed on my channel (Peter Schiff)
So firstly, why did prices across the board go up so much this year?
We basically have 3 forces at play here:
1. Central banks but I’ll talk specifically about The Fed, have been buying $120B of assets every month via QE.
2. Supply chain breakdowns as well as natural disasters: We had draughts in some Countries & flooding in others. Certain countries were quicker to act than others buying up as many soybeans and wheat contracts as they could get their hands on for example, meaning that the cheaper crops were gone first, leaving available only the more expensive
3. Most of the things needed to produce ‘stuff’ is going up in price, again due to supply chain shortages, but also due to a lot of the new QE that’s being created all around the World. Staff costs are going up, raw materials are going up, fuel prices are going up, trucking and transportation…
Additionally, the Government stimulus, boosted the demand of all things by consumers, this at a time when we had supply chain issues causing a very simple equation of supply & demand which created transitory affects on inflation specific to those goods and services
The amount of goods and services hasn’t changed, only the flood of money has. So this is bad if you’re on a fixed wage
Without stimulus, so less money in circulation and more supply, prices will have to fall (eventually)
Velocity of money is good for the Government to collect more and more taxes, but it’s bad for inflation, and too fast a velocity, can create hyperinflation
They gave everyone stimulus, and people went out and spent it, but what this really did was create velocity of money in the economy. Pushing up inflation
Inflation then: Inflation is a tax. Inflation is created at the central bank level. It steals from savers and re-distributes the wealth
As I mentioned last year, each round of QE takes 12-18 months to get into the economy. You can’t create more currency and not expect prices to rise
We don’t have a normal economy anymore, we have a credit based economy. Where credit has to expand, or everything will crash to the ground. That’s unhealthy.
Remember that inflation also comes from the money being spent (velocity of money). But if people simply take the money home and put it under their mattress, that’s deflationary in nature
I think the Central banks will begin by tapering off QE, and I think if the last crisis is anything to go by, this will begin in perhaps Q1 to Q2 of 2022, and it will end at perhaps the end of 2022 or early 2023
I think they will hold off on raising interest rates for as long as possible, but eventually they will have to raise rates… and I believe they will do that, eventually
One of the tell tale signs to look out for if you’re worried about hyperinflation is the velocity of money. The faster the velocity, the more the inflation. And right now, it’s down to the floor…
CHAPTERS:
00:00 - Introduction
01:08 - Rising Food Prices
06:54 - Is the Inflation Transitory?
10:44 - The Velocity of Money
14:30 - Why they can't raise interest rates
16:23 - My forecast for 2021/22
19:00 - Could we go into a depression?
DISCLAIMER
This video is for entertainment purposes ONLY & designed to help your thinking, not direct it. These videos shall NOT be construed as tax, legal or financial advice and may be outdated or inaccurate; all decisions made as a result of viewing are yours alone.
Sponsorships: Neil McCoy-Ward may earn an affiliate commission or referral bonus from any product or service listed or discussed.
⬇ NMW 'Approved' Services: ⬇
🧠 Private 1-on-1 Mentoring With Me: https://bit.ly/3bxv3xN
🏆 Join Our Finance Community: https://bit.ly/3pLyw0O
📺 My Other Video Channel (Odysee!): https://bit.ly/3kgx9WZ
🪙 Where I Buy Silver/Gold Globally! https://bit.ly/3kbgO61
🇬🇧 Where I Buy Silver/Gold in the UK: https://bit.ly/2Mj7zUO
🇺🇸Where I Buy Silver/Gold in the USA: https://bit.ly/3drNR2F
🏦 Where I Buy/Trade Crypto in Europe: https://bit.ly/3dCg74r
🏦 Where I Buy/Trade Crypto in the USA (1): https://bit.ly/3cHaiAA
🏦 Where I Buy/Trade Crypto in the USA (2): https://bit.ly/3hb5Mya
🔑 How I Protect My Crypto (Cold Storage): https://bit.ly/3bK8oyL
📧 Get An Encrypted Email for FREE: https://bit.ly/3egCmeP
💲Open a Roth IRA: https://bit.ly/2NRoldS
🏠 Create A Property (or AirBnB) Business in the UK: https://bit.ly/2NNEb9u
🚀 How I grew my YouTube channel so FAST! https://bit.ly/2OIZslr
In today’s video, you’re going to learn why food and other prices have gone up so dramatically this year
Then we’ll move into whether these price rises will continue or will they go back to normal
We’ll cover all this, as well as the big question everyone seems to be wrestling with atm: Inflation, Deflation (Steve Van Metre) or did one guest really say hyperinflation when he was interviewed on my channel (Peter Schiff)
So firstly, why did prices across the board go up so much this year?
We basically have 3 forces at play here:
1. Central banks but I’ll talk specifically about The Fed, have been buying $120B of assets every month via QE.
2. Supply chain breakdowns as well as natural disasters: We had draughts in some Countries & flooding in others. Certain countries were quicker to act than others buying up as many soybeans and wheat contracts as they could get their hands on for example, meaning that the cheaper crops were gone first, leaving available only the more expensive
3. Most of the things needed to produce ‘stuff’ is going up in price, again due to supply chain shortages, but also due to a lot of the new QE that’s being created all around the World. Staff costs are going up, raw materials are going up, fuel prices are going up, trucking and transportation…
Additionally, the Government stimulus, boosted the demand of all things by consumers, this at a time when we had supply chain issues causing a very simple equation of supply & demand which created transitory affects on inflation specific to those goods and services
The amount of goods and services hasn’t changed, only the flood of money has. So this is bad if you’re on a fixed wage
Without stimulus, so less money in circulation and more supply, prices will have to fall (eventually)
Velocity of money is good for the Government to collect more and more taxes, but it’s bad for inflation, and too fast a velocity, can create hyperinflation
They gave everyone stimulus, and people went out and spent it, but what this really did was create velocity of money in the economy. Pushing up inflation
Inflation then: Inflation is a tax. Inflation is created at the central bank level. It steals from savers and re-distributes the wealth
As I mentioned last year, each round of QE takes 12-18 months to get into the economy. You can’t create more currency and not expect prices to rise
We don’t have a normal economy anymore, we have a credit based economy. Where credit has to expand, or everything will crash to the ground. That’s unhealthy.
Remember that inflation also comes from the money being spent (velocity of money). But if people simply take the money home and put it under their mattress, that’s deflationary in nature
I think the Central banks will begin by tapering off QE, and I think if the last crisis is anything to go by, this will begin in perhaps Q1 to Q2 of 2022, and it will end at perhaps the end of 2022 or early 2023
I think they will hold off on raising interest rates for as long as possible, but eventually they will have to raise rates… and I believe they will do that, eventually
One of the tell tale signs to look out for if you’re worried about hyperinflation is the velocity of money. The faster the velocity, the more the inflation. And right now, it’s down to the floor…
CHAPTERS:
00:00 - Introduction
01:08 - Rising Food Prices
06:54 - Is the Inflation Transitory?
10:44 - The Velocity of Money
14:30 - Why they can't raise interest rates
16:23 - My forecast for 2021/22
19:00 - Could we go into a depression?
DISCLAIMER
This video is for entertainment purposes ONLY & designed to help your thinking, not direct it. These videos shall NOT be construed as tax, legal or financial advice and may be outdated or inaccurate; all decisions made as a result of viewing are yours alone.
Sponsorships: Neil McCoy-Ward may earn an affiliate commission or referral bonus from any product or service listed or discussed.