Blog | Personal Finance

Inflation: Is it Coming or Going?

Have you heard the word “parabellum”?

 

Parabellum is Latin for "If you want peace, prepare for war". That is what I do. I am always preparing for an economic collapse which will most likely bring war upon us all.

To quote a friend of mine, “The best plan for the long-term is to have something today for what could happen tomorrow.”

People have too much confidence in the government. But when the chaos hits, the government isn’t going to be able to handle the amount of people who need help. That’s why I decided to take my future into my own hands.

How?

By getting educated.

People always hear me talk about the need for financial education and taking care of your own financial freedom rather than relying on the government or a job.

But there is more to it than that.

People also need to understand the world they are living in and what is coming next so they can be prepared. For example, if deflation is in our near future, it is best to save cash. However, if inflation is in our future I want to get into as much debt as possible. These are two opposite strategies and I need to understand which one I believe is more likely.

How does one know what is coming next? By looking at the past and seeing how it is moving forward. In other words, by looking at the trends.

I have been following one of the best trend prognosticators in the world, Gerald Celente. I’ve asked Gerald to join me in this blog to help us determine whether inflation real, or is the Federal Reserve correct when they say it temporary.

Gerald is a friend and long-time favorite of mine and trends expert who has been analyzing and forecast the since the 1980s, and he’s one of the best — and most honest — people in his field. He’ll tell you he is a political atheist. To put it in Gerald’s own words, “I observe and analyze current events for what they are, not for how I want them to be. My motto is: think for yourself.”

I've followed Gerald for years because, as an investor, the trend is your friend. And Gerald uses trends to tell a story about the future.

When I asked Gerald about inflation, he didn’t respond right away. “What do the trends tell you?” he replied, as he started showing me headlines. One by one, he connected the dots, explaining in detail the story he sees and helping me understand his perspective.

In this blog, Gerald will provide a snapshot into his process to determine if inflation is real and how you can position yourself to prevail and prosper no matter what’s next.

Gerald Celente

Robert has asked me to answer the important questions: What's going on in the world? What it means? And what's next?

Right now, there is more evidence every day that inflation is here to stay.

Nike. 3M. Chipotle. Procter & Gamble. Coca-Cola. General Mills. Unilever. And many more have publicly announced price increases, margin pressure, and supply disruptions.

Important quantitative indicators are at or near all-time highs. Consumer Price Index and Producer Price Index are the hottest since the 1970s and 80s.

The Consumer Price Index ( CPI) measures the average change in prices over time that consumers pay for a basket of goods and services. – Investopedia

The Producer price index ( PPI) is a family of indexes that gauges the average fluctuation in selling prices received by domestic producers over time. - Investopedia

Wages are skyrocketing. Commodity prices are spiking. Supply chain shortages and delays. Ballooning deficits. Crippling debt. The list goes on.

The data shows inflation is not at or below the Fed’s 2% target — but substantially above it — yet the Fed continues to pump hundreds of billions of Quantitative Easing into the financial system and artificially suppress interest rates. Which, ironically, will lead to more inflation in the future, and when rates go higher (because they will, eventually), the economy will be crushed.

Robert’s definition of Quantitative Easing is “printing money out of thin air”

So, when asked if inflation is real, I answer with a question, “What do the trends tell you?”

While the headlines and narratives change daily, if you look at the facts and data, the trend is clear: prices are rising, and inflation is not likely to be as temporary or transitory as the Fed wants us to believe.

• Fedex raises prices 5.9%

  Shipping rates are going up faster than they have in nearly a decade, increasing pressure on merchants to raise prices or find other ways to offset higher costs.

• Natural-Gas Prices Surge, and Winter Is Still Months Away

  Prices haven’t climbed so high since blizzards froze the Northeast in 2014. Natural gas prices have surged, prompting worries about winter shortages and forecasts for the most expensive fuel in a decade.

• U.S. apartment rents jumped an average of 10 percent in August, year over year.

  August’s hike, the first year-on-year double-digit increase in more than two decades.

• In the first quarter of this year, house prices around the world saw their greatest rise in two decades,

  an FT study earlier this year revealed. The average price of a home across 55 countries rose 9.2 percent from June 2020 to June 2021, the fastest rate since 2005, according to consulting firm Knight Frank.

• In August, prices of online goods and services swelled 3.1 percent, year on year

  Prices across the Internet have increased for 15 consecutive months, jacking up the cost of everything from drugs to pet products to flower arrangements, according to Adobe Digital Insights.

When looking at the trends I worry for most people. They need to take action. Here are the three things I recommend,

1. Get into fighting shape

   I believe that you have to get in the best shape you can physically, emotionally and spiritually — and I mean that with all my heart. 70% of Americans are overweight and 42% obese. Those at highest risk of Covid have co-morbidities. The media and politicians don’t talk about this much, but you need to get into good health. One of the first books I worked on, back in 1986, Natural Healing, changed my life.

2. Think for yourself

   Look at the facts and data. Think like a political atheist, and analyze current events for what they are – not for how you, or anyone else, want them to be. Do your own research. Don’t trust headlines and clickbait or strangers on social media. Filter the noise. Find the trends, connect the dots, and most importantly, always think for yourself.

3. Plan and prepare to prevail and prosper

   These are uncertain, turbulent times, and we don’t know what the future holds. You must be prepared for any Black Swan event, especially something unexpected like Covid-19. My goal at the Trends Journal is to help readers prepare and prosper at the highest levels. I fear the Great Reset, Greatest Depression, and WWlll may be right around the corner, and we’ll help protect you and position your portfolio to withstand any crisis.

Occasionally I will stop talking about investing for the future and instead discuss insurance for the future.

If you understood what Gerald was saying, you can use the knowledge of trends to prepare for the Great Reset, Greatest Depression, and even WWlll. That is why when Gerald speaks of trends, he is not only talking about the economy but also geopolitics, health, survivalism, crypto, technology, science and more.

I value what Gerald has to say. Here at Rich Dad, we prepare and position ourselves for any event, including hyperinflation. This is why I subscribe to Gerald’s Trends Journal and recommend to anyone to get Gerald’s Trends Journal and stay ahead of the latest trends.

Gerald has created a special offer for you, the Rich Dad community. You can view it here at www.trendsjournal.com/RichDad.