BUCKLE UP, WE ARE HEADED FOR SERIOUS INFLATION!
You can’t just keep printing money out of thin air and keep bailing everyone out and not expect hyper inflation at some point! History always repeats itself and now the US (and the world) are headed to great depression and worse inflation levels as raw materials go through the roof! Here are some excerpts from a report I received from a subscriber from kingworldnews.com
Buckle up, we are headed into some serious inflation as one industry professional said, “Things are now out of control. Everything is a mess, and we are seeing wide-scale shortages.”
March 1 (King World News) – Peter Boockvar: The February ISM manufacturing index rose to 60.8 from 58.7 which was two points more than anticipated and compares with 60.5 in December. As inventories remain lean at around 50 and customer inventories at just 32.5, New Orders rose 3.7 pts to 64.8 and Backlogs grew by 4.3 pts to 64. … Stress remains on the supply chain as Supplier Deliveries rose by 3.8 pts to 72, the 2nd highest print since 1979.
Throw another $1.9 Trillion of government spending on top of that. Inflation breakevens are rebounding with the 5 yr level up 3.3 bps after Friday’s 6.4 bps rise. At 2.46%, that is the highest since April 2011 and is just a few bps from the highest since July 2008, which you know when, oil was…
These supply problems and cost pressures dominated the commentary from companies asked:
“Prices are rising so rapidly that many are wondering if [the situation] is sustainable. Shortages have the industry concerned for supply going forward, at least deep into the second quarter.” (Wood Products)
“The coronavirus [COVID-19] pandemic is affecting us in terms of getting material to build from local and our overseas third- and fourth-tier suppliers. Suppliers are complaining of [a lack of] available resources [people] for manufacturing, creating major delivery issues.” (Computer & Electronic Products)
“Supply chains are depleted; inventories up and down the supply chain are empty. Lead times increasing, prices increasing, [and] demand increasing. Deep freeze in the Gulf Coast expected to extend duration of shortages.” (Chemical Products)
“Steel prices have increased significantly in recent months, driving costs up from our suppliers and on proposals for new work that we are bidding. In addition, the tariffs and anti-dumping fees/penalties incurred by international mills/suppliers are being passed on to us.” (Transportation Equipment)
Here were the pricing comments within the Markit measure of US manufacturing:
“goods producers registered a severe uptick in cost burdens. The rate of input price inflation accelerated to the sharpest since April 2011. Higher raw material prices, notably for steel, and increased transportation costs were widely linked to the rise. The recent strengthening of demand allowed firms to partially pass on higher costs to clients through the fastest rise in charges since July 2008.”
Like the headline said, buckle up! It’s going to get worse from here as we go farther into the end times! Prayed up and prepped up!