Bank of America Comments on Inflation
For those that have missed it, Bank of America initially mentioned that there is going to be transitory hyperinflation. They are now changing their tune. Bank of America are expecting US inflation to stay elevated for around 2-4 years as mentioned on Reuters. They are saying we are going to experience permanent inflation.
“fascinating so many deem inflation as transitory when stimulus, economic growth, asset/commodity/housing inflations (are) deemed permanent”
Michael Hartnett – BofA top strategist
Additionally Mohamed El-Erian chief economic advisor to Alliaz and president of Queen’s College Cambridge also agrees. El-Erian says inflation is here to stay as per this Market Insider article.
Inflation is not just going to affect America. The assets Michael Hartnett mentioned are affected all around the world. What is worse is that statistics calculating inflation are deliberately leaving out items or assets that have risen in price. Hence the 8% inflation rate calculated by Bank of America and mentioned in the article is inaccurate.
A picture depicts a thousand words and that is exactly what the infographic below does.
Price Inflation between 2019 and 2021
Sourced from the Financial Times
The 10 Commodities on the Rise in 2021
Another Market Insider article mentions 10 commodities that have risen steeply in 2021. These commodities are lumber, coffee, cotton, aluminium, iron ore, lean hog, corn, soy beans, copper and wheat.
A lot of basic food items have rose in price between 2019 and 2021 and by large percentage amounts. The percentage amounts are so staggering that it makes the case that we are in a crack up boom.
This means we are likely to see social unrest around the world. The west will experience some tough times ahead too. Hyperinflation destroys society and if you are not prepared it will steam roll over you.
Here are some tips on how to protect yourself against inflation.