Get Ready for Non-Transitory Inflation: Ten Things About to Shoot Up in Price, by Kerry Lutz

It’s time to adopt the inflationary mindset. From Kerry Lutz at financialsurvivalnetwork.com:

Get ready for non-transitory inflation. 10 things about to shoot up in price.

Electricity In 2020 38% off all natural gas used in the United States went towards generating electricity. There are 1793 gas-powered electric plants in the US. While utilities generally buy most of their natgas through long-term fixed rate contracts, the low spot price that we experienced since 2015 has led to utilities increasing their gas spot purchases and decrease their long-term contracts. With natural gas recently nearing $5.5 per mm btu’s, higher electric costs are baked into the cake. In the past 12 months natural gas prices rose over %130. Assuming a prolonged period of increased gas prices, electricity rates will soon start shooting higher.

Heat It’s about to get way more expensive to heat your home. About half the homes in the US use natural gas for space heating and hot water. This sector alone was responsible for 15% of natgas consumption in 2020. For the same reasons as above, the decline of long term fixed-price supply contracts, prices are headed much higher.

Taxes Unbeknownst to many people, their largest annual expenditure is taxes. It’s not just direct taxes like income, state, real estate, etc., but it’s also indirect taxes levied by federal, state and local governments upon a myriad of businesses and services that are hidden from consumer view. A large portion of your utility bill goes to pay state taxes. Your cellphone bill contains a number of federal, state and local taxes. Tolls and other miscellaneous taxes are also part of the mix. Many of these governmental subdivisions employ expensive union-based labor. As inflation escalates, these employees will get automatic cost of living wage increases. This will increase already staggering pension costs. Therefore, governments across the board will be increasing their already high tax burden. And it will result in higher taxes on everything, even if federal income taxes don’t go up. Get ready for a major upside surprise.

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