Skyrocketing natural gas prices in Europe are already (before the real crunch may come in winter) causing MAJOR problems causing people’s electric bills to double- and more. It has also led to a major producer of fertilizer (CF Industries Holdings) to halt production because the natural gas prices make it uneconomical to produce their product.

This is just one example of higher price inputs causing inflation. Because of this interruption in production there will likely be a shortage of fertilizer going forward. This will lead to more inflation also as farmers will also have higher input prices leading to even more inflation as the grocery stores have to pay more for product and delivery. As a matter of fact, poultry slaughterhouses have slowed down substantially as the poultry producers are having problems sourcing and paying the price for CO2.

Richard Griffiths, CEO of the British Poultry Council told Bloomberg that surging natural gas prices are a massive blow for poultry companies which use a byproduct of fertilizer production (carbon monoxide) which they use to incapacitate the birds at the processing plant. So far, in the UK chicken production is down between5-10% and there is speculation that turkey production will fall 20% this year.

Of course, lack of supply is another reason for rising prices.

In addition to wreaking havoc with business there are 1.5 million people who have seen their energy suppliers go bankrupt in the last 2 weeks. (Bloomberg)

We have politicians like Boris Johnson saying this will be a “temporary problem” while those that produce the actual product (like Equinor, one of the EU’s largest natural gas suppliers) says these prices are likely to persist.

Here in the USA we have the Fed saying that inflation is transitory while CEOs of major companies are saying:

GE CEO Larry Culp Inflationary Pressures are “increasingly getting structural in nature”.

David Petratis CEO of Allegion PLC said of inflation “it’s not a transitory situation” and will likely last 2-3 years.

Craig Arnold, Eaton Corp CEO expects revenue guidance to miss because of parts shortages (supply chain disruption) which appears to me to be getting worse by the day.

Carrier Global Corp. warned that persistent inflation is ahead and the home appliances corp. can’t raise prices faster than the inflation has been.

Fedex reported earnings yesterday and also announced that they will be raising prices by the most in history because of Soaring labor and transportation costs.

Sounds to me like a lot of disappointing earnings are well on the way. Of course, none of that has mattered in a long time and probably won’t- until it does!

I believe that the main point here is that the central banks, along with their lackeys in government are deliberately trying to keep the truth about our true condition hidden as long as possible. Does anyone else find it strange that the economy is falling off of a cliff while the “markets” continue a relentless rise? Is anyone a little surprised that the “unemployment rate” is reported to be in the 5% range when we all know tons of people who can’t find a decent job for years? Is anyone else surprised that inflation is rumored to be transitory and under control when every trip to a grocery store ends with a price or size surprise?

The facts are that the statistics that we are fed by the complicit main stream media- and regurgitated over and over by “experts” are meant to deceive.

The real unemployment rate is over 25%- great depression levels.

The real inflaton rate is over 13%. (Both Shadowstats by John  Williams)

All that is masking this disaster taking place is the conjuring up of hundreds of trillions of currency units globally to pretend that our reality is not what it seems.

In the 1970s we measured what we called the misery index by adding the unemployment rate and inflation rate. Right now the misery index would be over 38- FAR higher than in the 1970s. However, undercounting inflation and ignoring a hundred million workers who just don’t count and- voila! All is well!

All of this trickery allows those in charge to continue their games to keep the dollar and assets like stocks, bonds and real estate elevated. At the same time in addition to conjuring up and selling fake gold into the “market” at opportune times these other games also help.

Gold moves higher when there is inflation. Gold also moves higher when real interest rates are low. Not just the stated rate but the rate MINUS inflation. If the numbers were honest, it would show that real rates are MINUS 10%. If that were well known it could lead to a massive price surge. So, it has to be hidden from us so that those in charge can continue to buy at a discount before they put an end to this charade. They will likely then introduce their already planned new system- likely backed by the very asset they are accumulating and trying to scare naïve investors out of. So they make up the numbers and have their minions at the financial game show networks do the rest.

Too bad that so many are duped by this. The value you are getting if you buy dollar-based assets right now is EXTREMELY low as the price you are paying is historically high. The value you are getting for real stuff- commodities, gold, silver, etc. is extremely high as the cost is extremely low. Of course, crowds buy high and sell low while people like Jim Rogers, Warren Buffett and others prefer to BUY LOW and SELL HIGH. Many top investors have said “buy when there is blood in the streets”. I will add that I believe we should buy metals now because we should buy assets that are artificially suppressed and when the suppression ends the increase in the price will likely increase dramatically to match the value.

Is China going to back the digital Yuan with gold? If so, we better have some gold. We also better prepare for an outcome that will be FAR worse than just inflationary. An outcome like that would render the dollar almost useless- and therefore almost valueless.

Again I have to ask “What is the value of a promise that cannot be kept?”

Be Prepared!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.

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