Stockman Exposes The ‘Inflationary Hell’ That’s about to Break Loose

The comments below are an edited and abridged synopsis of an article by David Stockman

It’s only a matter of time before Kiev surrenders to the Russians, but that deal will be so onerous from Washington’s perspective that it will not mark the end of the sanctions war, but will be an excuse for its intensification.

Stockman Exposes The ‘Inflationary Hell’ That’s about to Break Loose - BullionBuzz - Nick's Top Six
Burnt one hundred dollar bill damaged and falling sparkline chart. Concept of economic crisis, inflation and business failure.

When that becomes the reality, inflationary hell will break out, and the Fed’s experiment in egregious, inflationary money-pumping will splatter all over the Eccles Building.

The commodities markets have been so roiled by the action to date that Washington’s war on the global trading and payments system is now open-ended and could go on for years, because the Democrats now in charge of policy cannot see straight when it comes to the real issues of the conflict.

Meanwhile, oil recently hit $130 per barrel, and double-digit inflation is guaranteed.

That’s because the Fed is occupied by anti-Volckers who are clueless about the dire inflationary fires now raging; they are still buying bonds (QE) and planning only tepid 25 basis point rate increases when hundreds of basis points of rate increases are needed ASAP.

One example: Nickel spot prices are up nearly 5X, an illustration of the inflationary firestorm under way.

Wheat prices have skyrocketed more than 60% as the war effectively shut off more than 30% of the world’s wheat supply, which ordinarily trades out of the Black Sea ports for Ukrainian and Russian producers.

Those soaring costs will work their way down the processing pipeline until they arrive on the grocery shelves, just in time for American consumers to be paying $6 per gallon to drive to Kroger’s to pick up a price-inflated loaf of bread.

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