The Pomp Podcast - #914 Inflation Is Here And Putin Didn't Create It

Starting point is 00:00:00 what's up everyone this is anthony pompliano most of you know me as pomp you're listening to the pomp podcast simply the best podcast out there now let's kick this thing off today's episode is a breakdown of the recent inflation report that came out earlier this week we currently are sitting at a 40-year high in inflation and it is a dire financial situation for millions of americans i really enjoy recording these and i hope that you enjoy them as well before we get into this episode though i first want to talk about our sponsors this episode is brought to you by FTX US. FTX.us is the safe, regulated way

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Starting point is 00:03:06 the guests on his podcast are solely their opinions and do not reflect the opinions of Pomp Investments. You should not treat any opinion expressed by Pomp or his guests as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his personal opinion. This podcast is for informational purposes only. Good morning, everyone. Bang, bang. Inflation was reported at 8.5% this morning, which is the highest inflation reading in 40 years. Core inflation was also high at 6.5%. These are obviously astronomical numbers and highlight a dire financial situation for hundreds of millions of Americans. Here are the drivers of these alarming numbers. Gasoline up 48%,

Starting point is 00:03:46 used cars up 35%, gas utilities up 21%, meats, fish, eggs up 13%, new cars up 12%, electricity up 11%, food at home up 10%, overall CPI at 8.5%, transportation up 7%, food away from home 6.9%, percent, apparel up 6.8, and shelter up 5 percent. Given that the Russia-Ukraine conflict has had a material impact on oil and natural gas prices, it is not shocking to see gasoline prices up nearly 50 percent in the last year. The price of gasoline had already been elevated, so the conflict only exasperated the situation. The most shocking number to me, though, is the food at home. This 10 percent increase means that the average American family is paying materially more just to eat, which is obviously unsustainable for long periods of time. The current number is bad. And

Starting point is 00:04:35 the concern is that the increased prices in fertilizer, lack of high quality wheat exports from Russia, Ukraine region, and supply chain disruptions are only going to drive food prices even higher in the coming months. Karen Braun recently tweeted and said that 30% of the US winter wheat is in good or excellent shape, well below analysts expectations of 40%. And last year's 53%. And 36% of U.S. winter wheat is in poor or very poor condition. Not good news. And so we can analyze the official inflation numbers until our eyes bleed, but there is no way that the majority of Americans are living with 8.5% inflation. Most of the population is likely experiencing double-digit inflation. For example, a new decentralized inflation dashboard, Truflation,

Starting point is 00:05:20 measures the current situation at 13.5%. Is this a perfect measurement? No, it is nearly impossible to be perfect when measuring something as complex as inflation, especially when it is accelerating so rapidly. But 13.5% is likely closer to reality than 8.5% based on the average citizens experienced on a day-to-day basis.

Starting point is 00:05:41 This brings me to another point. The talking points around this inflation signal that politicians think the American public is stupid. The White House is now claiming that inflation is the result of a Putin price hike and they are refusing to claim responsibility either directly or indirectly for the current economic crisis.

Starting point is 00:05:59 The use of Vladimir Putin as a scapegoat is as lame as it sounds. It is absurd to argue that the highest inflation in the last 40 years was caused by actions that are less than six weeks old. The administration knows this, the public knows this, and the media knows this, but everyone keeps playing this game of charades,

Starting point is 00:06:15 hoping that no one will call anyone else on it. This is ultimately the problem with politicians in the current environment. They aren't incentivized to solve the problem, but rather they spend their time trying to figure out the right messaging. If wealthy people and politicians were suffering from high inflation, this nonsense would be over tomorrow. A concerning aspect of the current economic environment is that the Federal Reserve, our elected officials, and business leaders globally have no ammunition left to curb inflation without forcing the United States and other global economies into recession. Every tool that can be used to address the high inflation will only accelerate slowdowns in the economy. That is normally a good option

Starting point is 00:06:52 when these inflation-fighting tools are used early on in an inflationary situation, but the tools are too little and too late now. So the only thing that the average American can do now is survive. Ask their boss for a raise. Try to move their assets into inflation hedge allocations. Prepare to weather the storm ahead,

Starting point is 00:07:11 including potential stock market crashes, devaluation of the dollar, and crypto volatility. No one has a crystal ball. No one can predict the future. But we do know that our leadership is in an impossible situation. They are faced with a lose-lose decision. Double-digit real inflation was previously reserved for third world countries and dictatorships who lost monetary discipline. But now it has invaded the United States. We are at war with an invisible enemy, and we have no line of sight to material solutions. While politicians and central bankers kept telling us to not worry about inflation,

Starting point is 00:07:45 that it was transitory, and that it was even good for us. Bitcoiners were yelling from the rooftop about what was likely to occur. The Jack Dorsey hyperinflation tweet was mocked endlessly. On October 22nd of last year, he tweeted and said, hyperinflation is going to change everything.

Starting point is 00:08:00 It's happening. Time will tell if we ever meet the true definition of hyperinflation, but it is obvious that high and accelerating inflation is here to stay for the short term. I highly suggest you read Ray Dalio's new book, principles for dealing with the changing world order, why nations succeed and fail.

Starting point is 00:08:17 The more things change, the more they stay the same. Hope each of you has a great day in light of this horrible news. And I'll talk to everyone tomorrow. Thanks so much for listening to today's episode. I really hope you guys enjoyed this one. Make sure you're subscribed on Apple, Spotify, or your favorite podcast player.

Starting point is 00:08:34 And if you're looking to try to transition to get a new job in the Bitcoin or crypto industry, we've got you covered. Head over to palmscryptocourse.com. we've developed a curriculum with the top teams across the industry it's a three-week intensive training program with over 50 events packed into that three-week time period go to pompscryptocourse.com to learn more and i'll meet you guys for the next episode

The Pomp Podcast - #914 Inflation Is Here And Putin Didn't Create It

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