The Big Hit with Inflation is Coming

Many people believe that inflation is cooling, at least according to government reports. However, my personal experience with “Bidenomics” suggests otherwise, with inflation around 29% over the past couple of years. The government’s calculations omit several crucial factors, skewing the reported numbers to appear lower and more favorable. They don’t account for energy costs, insurance costs, interest rates, and increased medical expenses, effectively excluding them from their inflation metrics through some mathematical sleight of hand.

What many don’t realize is that the mismanagement of the dollar, primarily through excessive printing, has not only driven inflation sky-high but has also caused a significant rise in interest rates. This is where the real impact is looming. Homeowners with variable-rate mortgages have already felt the pinch as their payments have surged. Similarly, businesses rely on short-term loans and are facing a financial cliff that could cost billions. This year, more than three trillion dollars in loans and bonds are set to mature, leading to the largest single increase in debt costs and interest rate hikes ever faced by U.S. companies.

As these rates rise, guess what happens to inflation? It’s poised to skyrocket just in time for 2025. If Trump is re-elected, you can bet the blame will be laid squarely at his feet. But the real issue isn’t the blame game; it’s the impact on the American people. Inflation and high interest rates affect every sector of the market, potentially leading to bankruptcies, business closures, and a housing market crash reminiscent of 2008.

Fox Business highlighted the broader economic fallout, noting that about 22% of respondents plan to raise prices to offset the higher costs of refinancing their debt, which could push inflation even higher. Approximately 17% will squeeze their margins, and 14% will institute a hiring freeze. Another 14% foresee a liquidity crisis that could potentially end their businesses.

Cindra Maharaj, a partner at Baringa, remarked, “U.S. businesses and the wider economy are just beginning to experience the painful effects of a serious hangover from the rapid escalation in interest rates that will last for several years to come.”

The American people need to prepare for the financial turbulence ahead, as the consequences of rising interest rates and inflation will be felt across all sectors.