Inflation: You Ain't Seen Nothing Yet!

With today's report of inflation at more than 6% (worst in 30 years), please consider it the beginning and not the end. Here is the bottom line: 

...it’s not yet winter.  As temperatures decrease, corporations and households will consume even more energy,  increasing demand. Winter heating is not an optional cost. One cant allow one’s family and/or employees to freeze. The increase in consumption of energy during the winter will raise prices even higher.-

That’s only part of the story. The higher energy prices and the need to keep indoor temperatures warm will raise the cost of producing products.  The increase in energy costs will also raise the price of the supply chain—an increase in the fuel costs for trucks, container ships, etc. Companies will not eat those higher prices. The costs of producing and shipping products will force companies to increase the price of their goods.

Put it all together, as the weather gets colder,  energy costs will rise even faster. The increase in energy cost will raise the prices of goods produced from companies the use energy in the production and distribution of their products which will be passed along to the consumers.

In the end, if you think inflation is high today, just wait. It will be much higher by Valentine’s day.

I have been warning of this since October 6.

As recently as yesterday, a natural gas pipeline company warned St. Louis residents that they may run out of natural gas this winter!

Now consider that some of the meteorologists I most respect are calling for a colder and snowier/wetter than average winter east of the Rockies [I am not a long-range forecaster] plus one of the new computer models says the same. If this is a bad winter, this may be a winter of hardship that we have not seen since World War II. We have an acute shortage of truckers: what will happen when the few we have a struck in snow drifts? What will you do if the electricity fails. 

So, you need to prepare now! We have a fireplace we have not used in nearly 20 years but we have had it inspected and purchased a cord of wood. We've purchased plenty of extra food and water along with water purification supplies. Consider sleeping bags. Do you have a non-electric can opener?

There are many good checklists to use for planning. Find one and follow it. 

I hope I am wrong about all of this!!! But, remember, you'll eventually use the food and other preparation items. Make sure your family and neighbors are preparing, as well.