The Biden economy is in horrible shape and projections are for worse.
We reported this morning on the potential inflation bomb coming due to this Administration’s policies. To offset inflation, the only answer that has historically worked is to increase rates above the rate of inflation. That would mean increasing rates at least 10% since current rates are near zero and inflation is at 10%.
Corrupt Politicians Are to Blame for Massive Inflation – The Increasing Price of Oil is Leading to an Emerging “Inflation Bomb”
In addition, experts are pointing out that fertilizer prices are at all time highs. This will impact the price of food and inflation, of course.
Fertilizer prices have now passed 2008 peak. I’m not going to lie to you: it’s not good
H/T @dailyshot pic.twitter.com/OZhwTOg69o
— Gianluca (@Theimmigrant84) March 23, 2022
The dollar is facing downward pressure as countries like Saudi Arabia begin talks with China about using the Yuan as their currency for trade. This will hurt the dollar immensely forcing up inflation further. Zerohedge reports:
China’s importance to Saudi Arabia as an export market has risen in parallel with the Kingdom’s dependence on Chinese imports and investment; but, as Goldman notes, the increased frequency of use of financial sanctions by the United States as a foreign policy tool is arguably creating an incentive for third countries to diversify away from a perceived over-reliance on Dollar-denominated trade.
Relations between Saudi and the United States have also been on a downward trajectory since the start of this century. A long series of policy differences (from the invasion of Iraq to the potentially imminent revival of the JCPOA with Iran) and diminished US foreign policy interests in the region are leading Riyadh to seek political and security alliances with other world powers, including the Chinese.
All this is leading to warnings of trading house collapses. What a mess Biden has the US in now after only a year of his policies.
BREAKING NEWS:
A SENIOR EXECUTIVE AT ONE OF THE WORLD’S LARGEST TRADING HOUSES IS WARNING OF TRADING HOUSE COLLAPSES
Hold on tight.
— Gold Telegraph (@GoldTelegraph_) March 23, 2022
The post BIDEN ECONOMY: Potential “Inflation Bomb” Coming with Expected Increases in Prices of Fertilizer and Food while Petro Dollar and Trading Houses at Risk appeared first on The Gateway Pundit.
