The subject of inflation, as you have understood, is fundamental to understanding and anticipating the development of the situation in the months to come.
Let’s be clear.
WE ARE NO LONGER IN A NORMAL WORLD.
And we haven’t been in a normal world for a long time.
We are, I remind you, in a world where money has a negative price, with negative rates and this has a very special meaning.
Negative rates mean that today is safer than tomorrow. Rates are also the price of time and uncertainty.
Negative rates therefore mean that today is more uncertain than tomorrow …
Negative rates also mean that your money is no longer valuable, because no one needs your money and your savings anymore.
In a normal world your savings and surpluses finance the deficits or loans of others, and depending on the supply and demand of money, rates go up or down. In a normal world today is safer and more certain than tomorrow which is not known, and even more the tomorrow of in 10 years!
So when David Jacquot of Ecorama asked me to talk about inflation, I couldn’t help talking to him about what I thought of the soft “consensus” on inflation which will be “temporary and low”… so no problematic.
Inflationary Factors Outweigh Deflationary Factors!
And that’s a first for over 30 years !!
1 / Over-indebted States do not have the technical means to increase rates and therefore will not be able to fight against rate inflation.
2 / In the 1970s and 1980s, imported inflation only concerned energy. Today we import almost everything, so imported inflation will concern energy, like all the rest of all the products that we import and it is the main part of our shelves as the made in France is reduced to skin of grief.
3 / We have not yet financed the energy “transition”, that is to say the fact of moving to a world without oil and fossil fuels. The costs involved are monstrous.
4 / There is the new sharing of added value demanded by China, and rightly so.
What I didn’t say on this show.
I did not go into detail about the seriousness of the shortages and the fact that they are becoming deeply structural and will therefore be lasting. Shortages are partly settled by price, the greater the shortage and the more useful the product the more the prices soar. What people still have trouble apprehending is the extent to which the shortages will have chain consequences, including on food, for example.
I did not mention the scarcity of resources either.
I also did not put into perspective the different elements that I tried to do in this video of the Grenier de l’Éco that I offered to you yesterday.
Why haven’t I talked about all of this?
Because the vast majority of our fellow citizens are not ready to hear such reasoning and to look into such hypotheses is frightening for many of them.
They think the state wants them well. They think that the central banks are there to tell the truth, which amused me a lot from David Jacquot, while they are there to ensure stability, which has absolutely nothing to do with it.
They think that the institutions are well respected and that the media are there to “inform” them by telling them the truth.
In reality the system wants and wants only one thing, in China, here, as elsewhere, and that is stability.
They want you to be wisely at home to swallow their nonsense.
And the “telescreen” connected every day on a voluntary basis is only used to manufacture and obtain your consent.
So always be kind to those who don’t know or don’t want to see.
If the truth liberates, the truth is terribly violent for those who live in a reassuring lie.
It is already too late, but all is not lost.
Prepare yourselves !