Supply Chain Shortages and Inflation

[C-Mag]

Current real inflation rate 11%

Economist John Williams, founder of ShadowStats.com, says the Federal Reserve has painted itself into such a tight corner with the economy it really has only two choices. Williams says it comes down to “Inflation or Implosion.” What would happen to the financial system if the Fed stopped printing massive amounts of money for stimulus and debt service? Williams explains, “You could see financial implosion by preventing liquidity being put into the system. The system needs liquidity (freshly created dollars) to function. Without that liquidity, you would see more of an economic implosion than you have already seen. In fact, I will contend that the headline pandemic numbers have actually been a lot worse than they have been reporting. It also means we are not recovering quite as quickly. The Fed needs to keep the banking system afloat. They want to keep the economy afloat. All that requires a tremendous influx of liquidity in these difficult times.”

So, is the choice inflation or implosion? Williams says, “That’s the choice, and I think we are going to have a combination of both of them. I think we are eventually headed into a hyperinflationary economic collapse. It’s not that we haven’t been in an economic collapse already, we are coming back some now. . . . The Fed has been creating money at a pace that has never been seen before. You are basically up 75% (in money creation) year over year. This is unprecedented. Normally, it might be up 1% or 2% year over year. The exploding money supply will lead to inflation. I am not saying we are going to get to 75% inflation—yet, but you are getting up to the 4% or 5% range, and you are soon going to be seeing 10% range year over year. . . . The Fed has lost control of inflation.”

And remember, when the Fed has to admit the official inflation rate is 10%, John Williams says, “When they have to admit the inflation rate is 10%, my number is going to be up to around 15% or higher. My number rides on top of their number.”

Right now, the Shadowstat.com inflation rate is above 11%.

. . .

When will the worst inflation be hitting America? Williams predicts, “I am looking down the road, and in early 2022, I am looking for something close to a hyperinflationary circumstance and effectively a collapsed economy.”
https://bayourenaissanceman.blogspot.co ... ts-on.html

I always like checking back on predictions, this one is worth a bump

[PartyOf5]

More price comparisons.

Last fall my wife took her car in to get an estimate to fix the radio controls on her steering wheel. Was $240 at the time. She decided to wait. Well, now it's bugging her enough to go back and get it fixed. New estimate was $330. Same shop.

I picked up rear brake pads and rotors for one of our cars. Total was over $200. I did multiple brake and rotor replacements on our cars last year, none of which cost more than $180.

[SuburbanFarmer]

Just ordered brakes and rotors for $200 from rock auto. Repair shop estimate was $1000 for the job.

[C-Mag]

Just ordered brakes and rotors for $200 from rock auto. Repair shop estimate was $1000 for the job.

[PartyOf5]

Just ordered brakes and rotors for $200 from rock auto. Repair shop estimate was $1000 for the job.

Which is why I do them myself. Although I've never seen an estimate that high before. Still, $200 just for the parts is at least a $20 increase from just 4-6 months ago.

[SilverEagle]

Just ordered brakes and rotors for $200 from rock auto. Repair shop estimate was $1000 for the job.

Which is why I do them myself. Although I've never seen an estimate that high before. Still, $200 just for the parts is at least a $20 increase from just 4-6 months ago.

Same here. I have always done my own breaks. It’s not that damn hard at all. It doesn’t shock me that a break job could now be a $1,000 job.

[The Conservative]

Just ordered brakes and rotors for $200 from rock auto. Repair shop estimate was $1000 for the job.

Which is why I do them myself. Although I've never seen an estimate that high before. Still, $200 just for the parts is at least a $20 increase from just 4-6 months ago.

Same here. I have always done my own breaks. It’s not that damn hard at all. It doesn’t shock me that a break job could now be a $1,000 job.

It's not, that's the problem.

[The Conservative]

Before the Biden Admin caused this shitshow, I used to get 2 and 1/2 dozen eggs for $4.50.

The same eggs now are going for $9.00.

[SuburbanFarmer]

Before the Biden Admin caused this shitshow, I used to get 2 and 1/2 dozen eggs for $4.50.

The same eggs now are going for $9.00.

I get mine for free, jack. Get out of Mass.

[C-Mag]

I went to the store to pick up a few things. Starting to see some shortages.
Prepared foods, instant potatoes, canned soup, pasta.