RE:RE:Mid terms
Retiredgeo wrote: The FED is hiking interest rates to combat inflation. Today's inflation is caused by global supply chain disruptions. The global supply chains are screwed by covid shutdowns (past and present), China, the Ukraine war and a post covid western world surge in demand. All of this is a global problem which transcends US politics. The problem will go away when Covid fades away, China returns to normal, Europe returns to normal and the post pandemic surge fades away.
Ironically, a global recession could bring everything back into balance. I'm expecting a U-shaped global recession throughout 2023.
Will either US political party be able to do anything about any of this? I doubt it!
The supply chain issues are definitely a big part of the problem I do feel that the sanctions have changed the trading patterns forever and that the supply chain issues will persist for years ( until manufacturing returns to North America and Europe ) this return in itself is inflationary
The debt problems I feel will be a huge problem also higher rates will only make them worst
The baby boomers retiring also makes the problem worst governments around the world have huge liabilities for social programs re pension,Heath care that are grossly unfunded .I do agree governments
do not have the will or smarts to deal with these problems
We can expect the exceptable inflation target to be raised to 4%
The exceptable interest rate to 6%
The governments needs to raise productivity in North America and Europe in order to overcome supply chain issues and tame inflation working from home and shorter work weeks this trend is only making it worst and added to lower productivity and higher inflation
my conclusion is higher rates higher inflation is here to stay and that once this is realized gold along with other precious metals and commodities will have their time to shine and this is coming sooner rather than later I believe we will have some more downturn on the commodity front short term but this will abruptly reverse over the coming months just my thoughts at these low prices I continue to add to nfg and precious metals