Here's a video from BB King's 1983 concert at "Nick's" - "The way the buck has shrunk is a low down, dirty shame!"
Everyone has been either getting "the talk" or giving it to their own customers lately and, based on the recent numbers, it's not looking like it's going to get better. We're already hearing headlines about "peak inflation" - Not a chance! Oh and it's not Putin's or even Biden's inflation for that matter; it's just the natural result of printing trillions of new dollars out of thin air and tossing it out of a helicopter to "stimulate the economy".
The thing this policy has stimulated the most is the rate with which new dollars enter the bank accounts of the political architects of this policy!
Just like the "Inflation is transitory" narrative the narrative now is "ok, there's a lot of inflation but we're peaking and so the end is near and prices will subside". My BS meter is highly tuned and it's flashing red right now mostly because the PPI (Producer Price Index) is exploding higher from increases in every single basic material from gas to fertilizer. The PPI is a LEADING indicator which tells us what direction prices for finished products is headed; Higher. Much higher.
The reality on the ground is now clear to everyone and it's having real-world effects on what consumers spend their money on from food to services. For now, the rate of increase has been made manageable by the Fed continuing it's printing of new dollars. The problem with that is that it's like solving a hangover with more Vodka, it won't last and it'll be way worse when it's over.
Rates haven't joined the party yet however.
Usually when inflation goes up so do rates which include non-bank rates too. That is, I should be having "the talk" with my clients about paying higher rates but that's not happening because rates are being (artificially) suppressed so not to burst the everything bubble. Make no mistake, higher interest rates, not just higher gas prices is what you need to prepare for.
The Federal Reserve policy of trying to reign in a raging 8.5% CPI rate and a global crash in living standards with a .50% rate increase is reason enough to question their sanity but I don't really think they're actually insane, just trapped with no good choices (for them).
The best way to prepare based on what I'm seeing daily in my work is to lock in fixed rate for the longest possible term. Call me an I'll make an offer.
Making your purchases now using debt is actually profitable for as long as you can raise prices and rates stay low. If I had to guess I'd say rates won't stay low much longer.