Is Inflation Going to Rise Again?

Inflation could be on the rise again.

The East - West tensions currently are forcing large scale oil and gas producers like Russia to cut supply.

What is more, the huge amount of extra money around 10 trillion USD that leading central banks like the Federal Reserve, The European Central Bank, Bank of Japan and Bank of England printed out are just looking for catalyst to basically explode.

And the military operation or war in Ukraine, anyway you call it 😀 is a huge catalyst, which decreased or increased the velocity of money, it depends on how you look at it and created an inflation spike.

Now the cutback in oil supply that Russia is currently doing could make inflation explode again.

In some Eastern European countries inflation is already on the rise again.

In addition, commercial banks are giving out retail credits and mortgage credits like there is no tomorrow. And the deposit multiplication these credits create increases further the quantity of money in the economy.

In short, if global central banks lead by the Federal Reserve do not withdraw 5 trillion USD of excess money from the global financial system in the next 5 to 7 years, humanity could be in for a catastrophe -> World War III, which could even go nuclear, to put it mildly.

In such an environment commodities stocks look undervalued, because you need base metals to produce tanks, artillery, machine guns, ammunition and oil to drive tanks, armoured vehicles and supply chain vehicles, gas to warm up tents and finally precious metals to store and move wealth in difficult times like now.

On the positive side, peace should prevail in the end. And humanity would have (hopefully) learned its lesson. Because this could really be the last time where a global mistake could be left unpunished, in capital terms.

Humanity, though has proven remarkably resilient!