Banks Start Freaking Out About Soaring Inflation, Which May Not Be “Transitory”


Zero Hedge: For the past few months we – unlike the Fed – have been warning readers that the US is about to get a wave of soaring prices the likes of which have not been seen since the early 1970s (see “”Buckle Up! Inflation Is Here!”). And while two weeks ago we noted that “Companies Are Freaking Out About Soaring Costs“, sellside analysts had retained composure, with most comforting their clients that whatever inflation we get will be transitory (despite occasional luminaries such as Jeff Gundlach saying that the Fed and banks may well be wrong about the “transitory” narrative).

Well, as of this week, the analyst narrative has taken a sharp U-turn, starting with JPMorgan which yesterday admitted that there are an increasing amount of articles that illustrate rising inflation expectations, “even if those measures are not captured by official government releases” to wit:

  • Rental Companies Buy Up Used Cars as Chip Crisis Get Worse(BBG Terminal)
  • Demand is outpacing supply of new vehicles – why that’s bad for shoppers but good for investors (CNBC)
  • Tourists in Hawaii Are Driving U-Hauls Because Rental Cars Are So Expensive (CNN)
  • Lumber Prices Break New Records, Adding Heat to Home Prices (WSJ)

Opinion: If you come to this site often, this is no surprise.

Money printing (quantitative easing) that began in 2009 has been ramped up so much that it is now considered normal.

Yesterday, former chairwoman of the Federal Reserve and current US Treasury Secretary Janet Yellen, actually had the temerity to say this:

“I don’t think there’s going to be an inflationary problem, but if there is, the Fed can be counted on to address it.” 

How interesting that just 13 years ago as the US was about to enter the worst financial crisis since the great depression, Yellen’s predecessor at the Federal Reserve, Ben Bernanke, said this:

“At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained.”

Since 2009 by my count, the Federal Reserve and US Treasury has printed, or will print, upwards of $18 trillion dollars.

I cannot verify that amount because the Fed’s books are not open to us. It is a simple principle of debasement. When new money is added to the money supply, existing dollars are worth less, meaning it takes more dollars to buy goods and services. Stimulus in the form of free money adds to the problem as employers struggle to find employees.

Back on April 5 we printed 1 post too many for our arrangement with our hosting site. Without warning, Prophecy Tracker crashed. Bible prophecy calls for a similar scenario. One day either the euro or US dollar will crash. The result will be sudden hyperinflation. The 1% will be unaffected for a time …

By the way, yesterday Treasury Secretary Yellen called President Biden’s $6,000,000,000,000 spending package “moderate”.

Minor Prophets - Haggai | Fernridge Faith Center

The prophet Haggai 1:6-7 called it “a purse with holes”.

See our paper “The 1% and Revelation: Do not harm the oil and wine” Here