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The Beginning of the Beginning

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Already, the inflationary impacts of unlimited QE and the Ukraine Crisis are being felt across the globe. Your Central Bankers will try to convince you that they can restrain these forces simply by raising interest rates, but they will fail, and the situation will worsen in the months ahead.

How's that for a gloomy opening paragraph? Unfortunately for all of us, it's true. There is no way that a few rate hikes will reverse the current inflationary trends, and the resulting financial and societal impacts have not even begun to be felt.

For example, let's just take the energy sector. Of course, this is probably THE most important sector, as energy is vital to every component of human life. As you know, crude oil prices have surged in 2022 and remain over $100/barrel and up from $70/barrel to begin the year. That alone is nearly a 50% increase.

But now let your mind wander to all the things that come from petroleum—whether distillates or plastics or fertilizers. You already know about natural gas and how prices have soared this year, particularly in Europe. And this has a ripple effect. Have you noticed that uranium is over $60/pound and that coal is at its highest price in 15 years at over $100/ton?

But don't stop there. Have you driven around lately? Next time you do, be sure to notice the price of diesel fuel. It's over $5.00/gallon in most places. And it's not just trucks that use diesel. How about tractors? And how about mining equipment? Those higher transportation and input costs must be passed along up the manufacturing and supply chain, and a 50 basis point fed funds rate hike next month will have no impact. The Oil Price Rally Is Bad. The Diesel Crisis Is Far Worse

And how about this? Are you planning to fly anywhere soon? Have you checked the cost of your plane ticket? Jet fuel prices are through the roof and airlines have no alternative but to pass this along to you. Do you suppose that FedEx, UPS, and the other shipping companies might be impacted by soaring jet fuel costs, too?

Javier Blas Twitter

And don't forget about fertilizers. Oh sure, you can still grow some crops with reduced fertilizer use, but your yield per acre is sure to fall. Add that to your other soaring input costs and potential shortages as exporting countries begin to hoard their own production, and what do you get? A lot of hungry and angry people. My kids call it "hangry". I call it a looming disaster.

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I could go on, but this is just petroleum and petroleum-related products. What about the physical commodities of grains and base metals? The soaring prices in those sectors are going to have an impact, too. My point is: You're being sold the idea that the Central Bankers have this all under control via their plans to hike their overnight interest rates. But think about it. How will 50-100 basis points in fed funds hikes have any impact upon what you just read?

We're not quite at the urgent stage yet, and you still have time to prepare and plan accordingly. However, it has never been more important for you to think for yourself. Do not simply fall for the MSM and .gov SPIN and MOPE. God gave you a brain. Use it.

Gold prices have been rigged lower through the derivative markets as western governments try to maintain control against Russia and China. How long will this scheme continue? Is it already fraying at the edges? Read this and consider: Unfinished Brexit Business: NATO's Internal Gold War

In the end, are you financially prepared with precious metal? Are you physically prepared with a secured supply of food and other essential items? Things are moving fast, and now is the time to be asking yourself these serious questions.

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About the Author

Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities.

Since 2010, he has been the editor and publisher of the TF Metals Report found at TFMetalsReport.com, an online community for precious metal investors.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.


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