Inflation to increase, Your money will buy less.

 IT MAY TOO LATE TO CHANGE THE ECONOMIC FUTURE

PRESERVING WEALTH WILL BE PRIORITY 

 

Many expect that the midterm elections will change the direction of the country. We can expect that the direction will be the same, just accelerated.  While many thought that Trump may have been the last chance president to change the direction, it is clear that will not happen. We can expect the Democrat's with their renewed emphasis on socialist yearnings will just put the final nail in the American dream.

 

While a dire prediction, it is all about basic math that inevitably will overrule all the sophisticated financial shenanigans and creative accounting. In the end it just basic math that rules the financial world, and the end of the current financial system is coming quickly.

 

Elon Musk's  DOGE  experiment, that saved $165 billion from the budget was a small hope that there was going to be a change of direction. It was dashed and I suspect Musk disappointed, when that saving was shifted into the, bloated, never audited defense budget. It was an indication that the hope was moved from financial responsibility to military power, in a last ditch hope to save the nation. We can now see that hope is being dashed in the middle east and the financial system is now even more severely precarious due to the expenditures and the other collateral damage.

 

While oil futures have temporarily lowered, the reality is that reserves are still being depleted and have very little left to deplete, the oil shortage will continue and will last for possibly years after, and if, there is an end to this current war. While we hear that oil is moving again, it is, but around 25 ships a day as compared to 125 a day. and all other resources have not moved in 8 months.  This is a problem on the supply side but the other problem is worse.

 

The US money supply has risen 52 % since 2020, this is a direct result of continuous pumping money into the system either to save institutions or political purposes, it is the real cause of higher prices and the reduced buying power of your dollars. It is now approaching the so called "blow off " that precedes economic destruction. 

 

While Trump failed to reign in spending the new congress hopes to spend Trillions more and the interest on the debt will demand increase expenditures, it is all financially unsustainable. While the hope is increased Democratic Socialism, that failed economic idea is on its last legs in Western Europe, it will be here as well. It is too late to reverse the final meteoric rise in the money supply, hyper inflation and most likely economic collapse. It will be the end of US military adventurism and a withdrawal from being the worlds supervisor, or it will be some sort of last ditch military confrontation that will send us all back to some sort of preindustrial society.

 

Hopefully the next generations will learn from this example and rebuild a better world.