You Paid How Much for What?

The stock market, they say, climbs a wall of worry. And boy, do we have some things to worry about. First of all, there's inflation. The inflation rate hit 6.8% in the latest reported data — the highest rate since 1982 — and it's projected to be at 7.1% for all of 2022. The stock market, they say, climbs a wall of worry. And boy, do we have some things to worry about. First of all, there's inflation. The inflation rate hit 6.8% in the latest reported data — the highest rate since 1982 — and it's projected to be at 7.1% for all of 2022. [Energy and Capital logo] You Paid How Much for What? [Christian DeHaemer Photo] By [Christian DeHaemer]( Written Jan 11, 2022 Greetings from the small town of Dayton, Maryland. Today we will waste some digital ink trying to figure out this market. The stock market, they say, climbs a wall of worry. And boy, do we have some things to worry about. First of all, there's inflation. The inflation rate hit 6.8% in the latest reported data — the highest rate since 1982 — and it's projected to be at 7.1% for all of 2022. 1982 was a long time ago. I was a high-school freshman. Although I have vivid memories of Tammy Coramear, who wore these tube-top shirts that showed off her shoulders, I have very little recollection of inflation. The only thing I remember about inflation — aside from the parental units' lively complaints about the price of gas — was that one day the quarter I stuck in a soda machine wasn’t enough. The price of a Mountain Dew had risen to $0.35. I only mention this because I am well past middle aged though not quite into my dotage. Most people alive today in the United States don’t remember runaway inflation or how to deal with it. Get Ready for a Huge Fed Move (as Soon as January 26) Federal Reserve Chairman Jerome Powell just broke HUGE news... After months of silence, he finally admitted that the Fed is working on a digital dollar. This bombshell move could spell disaster for Bitcoin. But if you know how to position yourself, you could multiply your money by as much as 60 times in the months ahead. I expect truly historic windfalls with a “digital dollar” going live — some investors have already pocketed gains of as much as 1,585%, and that’s just the start. It’s vital you act BEFORE the Fed makes its next big announcement. [Click here for everything you need to know.]( History tells us that when inflation first hits, people can’t believe their good fortune. In the Weimar Republic of Germany, which saw inflation spike in the 1920s, Germans sold their family jewels, grandfather clocks, and nice furniture to those with more stable currencies like the Austrians. The Germans couldn’t believe that they could get twice as many Deutsche Marks for Grandma’s bed as they perceived it was worth. It was only later, when the bed cost four times as much to buy back, that they realized they’ve been had. Used Cars [Used Car Prices] Perhaps the most interesting dynamic of the pandemic economy is used cars. Used car prices are up 30% to an average of $29,000. People will tell you they put 40,000 miles on a car that they’ve owned for three years and are selling it at the price they paid for it. They say this in a giddy voice, not believing their good fortune. There are several factors at play in car pricing. People moved to the suburbs or are staying off public transport, car companies can’t find chips to produce new cars, etc. But I suspect that some large portion of this is a monetary problem. There is too much cash chasing too few products. Since 2020, the Fed has created $6 trillion new dollars. Total U.S. GDP is only $20 trillion. The #1 Stock to End COVID (Not Pfizer) While companies like Moderna brought us vaccines... Big and small companies all over the globe are STILL working 24/7 to create a successful COVID-19 treatment. But one company’s breakthrough COVID-killing nasal spray is about to beat them all.This company is not some big pharma giant like Pfizer or Merck. It’s TINY. But it has the power to end COVID once and for all... And could hand you profits large enough to help you retire wealthy. [Take a look at this groundbreaking treatment for yourself.]( Paul Volcker, the Fed chairman back in 1982, knew the way to stop inflation was to drive up interest rates and shrink the money supply. This he did, which solved the problem but caused a recession. The current Fed chair, Jerome Powell, seeks to do much the same thing. He will take his foot off the gas by winding down the $120 billion-per-month QE program that gave newly created money to banks, consumers, and businesses. This will also end support for municipal bond markets, primary deals, money market funds, the REPO markets, ETF markets, corporate debt markets, and commercial paper markets as well as support for loans of all kinds, including student, auto, and credit card. No one knows if Powell will have the fortitude to go all the way like Volcker did or how many rate hikes will be needed. The consensus is that the Fed will hike rates four times this year, starting in March. On the flip side of these worries, it would seem that the U.S. is near full employment, with a 3.9% unemployment rate and over 10 million job openings, as well as a chance of a post-COVID economic surge once omicron burns itself out. Charts from South Africa show that virus cases drop down as fast as they went up. We also have first-quarter earnings due any moment. In the next two weeks, we will have a much better picture of what 2022 will look like. All the best, [Christian DeHaemer Signature] Christian DeHaemer [[follow basic]@TheDailyHammer on Twitter]( Since 1995, Christian DeHaemer has specialized in frontier market opportunities. He has traveled extensively and invested in places as varied as Cuba, Mongolia, and Kenya. Chris believes the best way to make money is to get there first with the most. Christian is the founder of [Bull and Bust Report]( and an editor at [Energy and Capital](. For more on Christian, see his editor's [page](. Browse Our Archives [Stop Watching Others Bank Triple Digits While You Sit on 10% Returns]( [According to Apple, You’ll Die Without This]( [Progress Breeds Profits]( [Last Chance to Buy]( [3 Fresh New Market Predictions for 2022]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. 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