At the beginning of 2021, inflation should not be a problem according to Fed Chair Jerome Powell. This same Jerome Powell then spoke of transitory inflation in the early summer of 2021 when it had just exceeded 5% in America. At the end of September 2021, Jerome Powell started talking about controlled inflation.
At the time of the announcement of the Fed tapering in early November 2021, Jerome Powell explained that the term transitory that he had used earlier had been misunderstood. Jerome Powell apparently meant exceptional and transitory conditions that induce this inflation that remains above 5% for several months.
On November 10, 2021, the inflation figures for October 2021 in America were released: inflation jumped by 6.2%, a first since 1990 ... We now wonder what formula Jerome Powell will come up with.
Everything is getting more expensive in America, and the Fed expects this to last through at least 2022
In concrete terms, everything from your gas bill to your breakfast is getting more expensive. Fuel oil prices climbed 12.3% last month and are now up 59.1% compared to the same period last year. Meat, poultry, fish, and eggs rose 1.7 percent last month, and are up 11.9 percent from a year ago. Airline ticket prices are up as well. For those hoping to take a vacation, this is not good news...
Trying to minimize this inflation and the risks it poses to the daily life of Americans, politicians will tell you that the sudden reopening of the economy after the pandemic has caused all sorts of shortages, both in the labor market and in the movement of goods due to bottlenecks in supply chains. This would have contributed to higher prices.
You can believe this version, or you can open your eyes and realize that the ultra-accommodating monetary policy conducted by the Fed for the past 18 months is at the origin of this situation. You can't print out of thin air more than 35% of all the dollars in circulation in 18 months, while lowering interest rates to zero and conducting a $120 billion per month asset purchase program, without expecting inflation to rise.
It is therefore logical that the current situation is causing concern at the highest level. Janet Yellen is asking the Fed to ensure that inflation does not get out of control as it did in the 1970s and 1980s. The former Fed chair is confident in the Fed's ability:
“That isn't happening now and the Federal Reserve wouldn't permit that to happen.”
It is clear that the Fed now believes that this inflation is set to last into 2022 as the tapering will start in December 2021 with a reduction in asset purchases of $15 billion per month until mid-2022. Then, the Fed will consider raising interest rates if the situation remains the same. The Fed always leaves itself a way out.
Such inflation necessarily has a negative impact on your purchasing power. You have to find investments that will allow you to outperform this inflation. If you can't do that, which is the case for most people, then you will inevitably lose money.
While the USD system is eating your purchasing power, another system is emerging to protect you from this flawed system
So you need to look for a weapon against this inflation. A weapon that is accessible regardless of your wealth. This weapon has a name and is written in 7 letters: Bitcoin.
Bitcoin is the best hedge against this inflation that will remain at an extremely high level for months. Accessible to everyone, Bitcoin simply requires that you have a smartphone and an Internet connection. Nothing more. Then you take control. You can buy Bitcoin for any amount you want since it is divisible to eight decimal places.
A purchase of $5 of BTC per month can be enough depending on your possibilities. The important thing is to realize that you need to opt for a more protective system so that the fruits of your labor are kept out of a system of generalized impoverishment that has been going on for a little over 50 years now.
Everything starts with a choice that you will have to make. While this choice might have seemed more complicated in the past, the current economic situation is edifying enough in my opinion to tip the balance in favor of Bitcoin. If the U.S. dollar system is eating away at your purchasing power, Bitcoin is eating away at the U.S. dollar with significant advantages for the people.
Once you discover the benefits of a neutral, non-political, hard-capped currency with a programmatic monetary policy, you will have no doubt. Your life is about to change for the better. All you have to do is take action.
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