Government bureaucrats have accomplished what Central Bankers have failed to do.
For decades, Central Banks have attempted to “create inflation.”
They’ve cut interest rates over 800 times.
They’ve printed over $20 TRILLION in new money.
They’ve even tried buying every asset you can name (corporate bonds, municipal bonds, student loans, auto loans, Treasuries, Mortgage-Backed Securities, etc.).
None of these strategies worked. Inflation never ran HOT. Heck, it never even rose above 3% for more than a few months.
However, with one simple move, government bureaucrats have accomplished what Central Bankers failed to do.
By shutting down the economy, the government has managed to create crises in both labor (people are not returning to work or have changed careers completely) AND the supply chain (items are delayed for months: sitting idly in cargo ships or simply not being produced at all).
These crises in labor and the supply chain are resulting in lower supplies of much needed resources. Factories are operating at partial capacity or in some cases, not operating at all. Grocery store shelves are running bare. Orders are taking twice if not THREE times as long to be fulfilled.
Much lower supplies + normal demand = HOT INFLATION.
And there’s NOTHING central banks can do to fix this.
The Fed can’t print employees or oil.
QE doesn’t suddenly make factories operate normally.
Yield curve control doesn’t start unloading cargo ships that are sitting at docks.
And the bureaucrats who created this mess don’t have any solutions for it either.
The Biden administration announced today that it will try to force oil prices lower by releasing 50 million barrels of oil from the Strategic Petroleum Reserve (SPR) over the next few months.
This number (50 million barrels) sounds like a lot… until you consider that the U.S. consumes 20 million barrels per day.
Put another way, this release accomplishes nothing. Oil has already rebounded on the news and is back at $80 per barrel.
Again, this kind of inflation cannot be stopped by the Fed or the government. And it has presented us with the opportunity to profit from once in a lifetime event: the arrival of an inflationary crisis that cannot be slowed or stopped by the Fed or fixed by government policies.
During the last major bout of inflation in the 1970s, smart investors locked in gains in the QUADRUPLE digits (1,000% or higher). And THAT version of inflation was the kind the Fed could easily stop!
So you can imagine the profit potential of this crisis today.
I outline five investments that could explode higher as inflation rips through the financial system in a Special Investment Report titled Survive the Inflationary Storm.
To pick up a free copy, swing by