5 Reasons Why Inflation is Here to Stay

Inflation isn't going anywhere... Get ready for the long haul                                                                                                                                                                                                                                                                                                                                                                                                                 May 18, 2024 | [Read Online]( [fb]( [tw]( [in]( [email](mailto:?subject=Post%20from%20The%20Inflation%20Cafe%27&body=New%20Post%3A%20%0A%0Ahttps%3A%2F%2Fthe-inflation-cafe.beehiiv.com%2Fp%2Fnew-post-4b6a) In partnership with 5 Reasons Why Inflation is Here to Stay Inflation has become a hot-button issue in economic discussions around the world, particularly in the United States where consumers and policymakers alike are feeling its impact. Despite efforts to curb it, several indicators suggest that inflation may not be a temporary problem. Here are five reasons why inflation might be here for the long haul: - Government Deficit Spending The U.S. government is currently running a $1 trillion deficit every 100 days, a staggering amount that necessitates an increase in money supply. The primary method to cover this deficit is by printing more money, which inherently devalues the currency and leads to inflation. This practice of financing government spending through debt and the creation of new money can have long-lasting inflationary effects. - Cost of Living Adjustments Inflation triggers automatic increases in various forms of compensation through cost of living escalation clauses found in union contracts, as well as social security and retirement benefits. As these wages and benefits increase to keep pace with rising prices, they can create a wage-price spiral, further driving the inflation cycle as businesses raise prices to cover increased labor costs. - Rising Commodity Prices Commodities are fundamental to the economy, influencing the cost of goods ranging from food to fuel. Recent trends show a continuous increase in commodity prices, which translates directly to higher consumer prices. This cycle perpetuates itself, as initial price increases lead to increased costs for producers, who then pass these costs on to consumers, thereby fueling ongoing inflation. - Historical Inflation Cycles Economic history shows that inflation often operates in multi-decade cycles. The current inflationary period, ignited in 2020, could be in its early stages. Historical precedents suggest that once inflationary expectations set in, they can persist, making inflation difficult to reverse without significant economic upheaval or stringent monetary policies. - Unrestrained Government Spending Another significant factor is the continuous increase in government spending. No major political figures or parties are currently advocating for significant cuts to the budget. As long as spending continues unchecked, the government will likely continue to finance it by increasing the money supply, further exacerbating inflation. Each of these factors not only contributes to the persistence of inflation but also interplays with the others, creating a complex economic situation where traditional methods of controlling inflation, such as tightening monetary policy, may face significant challenges. This suggests a scenario where inflation could remain a defining feature of the economic landscape for an extended period. Protect Your 401(K) or IRA A single economic crash or a new surge in inflation is all it takes to cancel your retirement plans. This is why you need a gold IRA from Birch Gold Group! [To learn more, click here to get a FREE info kit on gold.]( [Import Prices Unexpectedly Surge Higher, Raising Inflation Alarms]( by John Carney [Breitbart.com]( In a trend that underscores the intransigence of high inflation in the U.S., the cost of imported goods rose in April for the fourth month in a row, marking the fastest pace of increasing import prices in two years. The Department of Labor’s import-price index surged 0.9 percent last month, government data showed Thursday. This was three times higher than what was expected. The broad-based increase was not limited to energy, as import prices excluding fuel also climbed by 0.7 percent. Import prices for nonfuel industrial supplies and materials jumped 3.0 percent in April, marking the largest monthly increase since March 2022. April’s rise follows a 1.1 percent advance in March, driven primarily by higher prices for agricultural products. [Continue Reading at]([Breitbart.com]([…]( [YouTube video by ITM TRADING, INC.]( Your Money Is Absolutely Worthless - Todd “Bubba” Horwitz says manipulation aimed at devaluing USD. [Your Money Is Absolutely Worthless - Todd “Bubba” Horwitz says manipulation aimed at devaluing USD.]( [Fact Check: White House Tries to Justify Biden’s Lies On Inflation]( by John Carney [Breitbart.com]( Claim: Biden’s false claim about inflation was really just making the point that the causes of inflation were already in place when President Joe Biden took office. Verdict: False and misleading. White House Press Secretary Karine Jean-Pierre on Wednesday said that President Joe Biden’s false claim that inflation was at nine percent when he took office was intended to point out that the causes that led to inflation reaching that high were in place when he took office in January of 2020. 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