Protect Yourself From Inflation, by Bill Bonner

Somebody is always going to be on the losing end of inflation, but it doesn’t have to be you. From Bill Bonner at rogueeconomics.com:

The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures.

– Legendary value investor, Warren Buffett,
in Fortune magazine, 1977

YOUGHAL, IRELAND – Yesterday, a dear reader asked how the average Joe can “get a leg up” in a dangerous and difficult world?

It won’t be easy.

Here’s the latest mouthful from Bloomberg:

Fed Officials Rattle Rate-Hike Saber as Price Pressures Surprise

What Bloomberg is trying to say is that the Federal Reserve is hinting that it might… possibly… perhaps… raise rates.

Wednesday’s Fed forecast suggested that two increases are likely in 2023; none before. In other words, it said nothing.

It could raise rates twice… three times… four times… even 10 times… and still be well below the level of consumer price increases.

Which is to say, the Fed is now “behind the curve”… following the trend of events, not leading it… and hopelessly stuck in an Inflate and Die trap.

But that is just to say that the “average Joe” should prepare now: Consumer prices will probably continue to rise. And if not now… later.

Price Crime

So let’s look at the leg we’re trying to get up.

Most people get their income from selling their time. A man with a backhoe can dig a trench faster than 10 men with shovels. The capital – the backhoe – is what makes a man’s time more valuable.

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