The price of pretty much everything is rising precipitously. The CPI for September came in above expectations with a month-on-month increase of 0.4%. Peter Schiff appeared on Unfiltered with Dan Bongino to talk about inflation in Joe Biden’s America. Peter said you should stock up now because things could get ugly really quickly.
Bongino pointed out that while wages are rising, they aren’t rising as fast as prices. Wages have risen 4.6% while inflation has surged by 5.4% — according to government numbers. Peter said that is typically the trend.
Peter said the real problem is during and after COVID, a lot of Americans stopped working.
Unfortunately, they didn’t reduce their spending because the government made the mistake of replacing the incomes they lost with new money that the Federal Reserve was printing. So, we were making fewer things to buy, but everybody had more money to buy stuff, and so, prices just went ballistic. And they’re going to keep going up.”
Bongino pointed out that the rich have accounts and hedge mechanisms to shield themselves from the impacts of inflation. But what does an average middle-class family do to avoid the financial apocalypse of inflation coming down the pike?
Peter said, first of all, remember that inflation is a tax.
So, when the Biden administration says they’re not taxing people that make less than $400,000, they’re hitting them with this huge inflation tax.”
So, how do you avoid it?
Peter said, “Stock up now!”
Buy the things that you think you may need a year from now, two years from now. Buy it now. Especially the stuff that is nonperishable. Because in the future, stuff is going to be in even shorter supply than it is now, but prices are going to be much higher. So, why wait for the prices to go up? Just buy the stuff that you need now while it’s available and a lot less expensive than it’s going to be pretty soon.”
Bongino said we have plenty of historical examples that show us an inflation problem can get very ugly very quickly if we don’t get our arms around it. Just look at what happened in the Weimar Republic. Peter said it will get ugly, and there really is no way to get our arms around it.
I think we’re going to reap the whirlwinds of the winds that we’ve been sowing. And you know, you have to go back to the 1970s to see inflation anywhere near this bad. The problem is we’re already at the point that we were at the latter part of the 1970s. We’re just getting started. So, we’re going to be looking at serious annual inflation rates in the double digits. And imagine how high the official rates would be if the government was actually measuring them accurately. Because we’re not keeping track of prices using the same CPI that we used back in the 1970s. What we’re doing now really understates the true degree to which prices are rising. And so Americans are feeling the pain of inflation to a much greater degree than it’s being reflected in the official numbers.”