The Labor Department said Wednesday that consumer prices rose 5.4% annually in July. The Federal Reserve has insisted the recent price gains are “transitory” and that those increases will mitigate once production issues are resolved. In our view, economists and pundits who claim that the current widespread high inflation is short-term are totally incorrect! Inflation is fully embedded in our economy by flawed policies that virtually guarantee an unfair inflationary tax on our nation’s citizens – particularly its middle class. Those unfair decisions so far, since January of this year, have involved relinquishing our country’s energy independence by shutting down drilling on federal lands, killing the Keystone Pipeline (which was nearly completed and provided tens of thousands of jobs while providing greater energy independence for our nation), green-lighting the Russian’s pipeline into Europe so that our allies may become more financially dependent for their energy on that problematic regime, and then, today, calling for OPEC to increase its oil production – after we’ve unilaterally slowed ours down. Every single one of these policies imposes an unfair on our citizens’ taxes by:
- Increasing our gasoline cost by 50% since January of this year.
- Making everything we pay for much more expensive because of higher shipping costs – due to those higher energy costs.
- Obliterating our workforce by paying people twice as much as they formerly earned working for a living, with an all-time record high in federal and state unemployment benefits, that keeps them out of our workforce.
- Creating production and distribution bottlenecks by forcing parents to stay home to care for their children – due to school and daycare closures caused by the botched COVID-19 response.
- CONTINUING TO THREATEN TO RE-SHUT DOWN OUR ECONOMY, CREATING DOUBT ABOUT CHILDCARE, UNCERTAINTY ABOUT OUR ECONOMIC FUTURE, AND UNNECESSARY FEAR!
- Continuing to threaten to mask our precious children when there is not a shred of scientific evidence that any of that is necessary when dealing with the respiratory disease of COVID-19. Numerous CDC studies, and National Institute of Allergy and Infectious Diseases (NIAID) studies, reflect that masking does not stop the tiny particulate matter airborne with any virus. CDC statistics show that more children died in the last year and a half from normal flu in our country than died from COVID-19. In fact, CDC statistics show that our children have a much higher chance of dying from a lightning strike than experiencing a COVID-19 death!
Spectrum Financial Alliance, Ltd., LLC, clients may rest easy knowing that your portfolio is uniquely positioned to benefit from high inflation, which we believe certainly is locked into our economy very long-term (likely decades). Investors and high-income individuals will benefit from these flawed policies; but for the majority of our country, it’s going to be a rough ride, and fewer huge changes will occur in our government. God Bless you, and God Bless the United States of America.
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