Will this inflation bubble ever pop?

Hello Reader, According to Federal Reserve data, industrial production activity in March rose 0.9%. This news came as some economists warned of recessionary risks as the Fed tightens monetary policy amid a worrisome rise in inflation, which the war in Ukraine has only exacerbated. So, what’s happening? There’s a massive backlog of demand. But due to supply chain-related delays, orders for capital goods have gone unfilled. Through February, the backlog of these unfilled orders sat at a record $244.4 billion. In other words, there’s a mountain of unfinished work. And that mountain of unfinished work is impacting inflation at unprecedented levels. In addition to the massive backlog of capital goods orders we discussed above, the U.S. economy also had a whopping 11.3 million job openings as of March. Keep in mind that companies don’t list job openings unless they have work to be done. Bloated order backlogs and long lists of job openings are pretty clear signs that demand continues to greatly outstrip supply. So, before the economy can go into any kind of recession, it has to lose a lot of this extra demand. Unfortunately, this extra demand is also what’s keeping inflation so high. Admittedly, this is a pretty complicated situation. Doing too little could cause continued elevated inflation, while doing too much could force the economy into recession. For now, it seems like the former is the case. Regards, [image] Andrew Graham Editor, Silver Ridge Market Report P.S. Once high-flying Russian "blue chip" stocks have been beaten down unmercifully. And… once the war is over… these dirt-cheap stocks will have stunning growth potential. [Discover the names of these massive growth potential stocks here.]() [image]() 316 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 316 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 316 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@SilverRidgePro.com or click the unsubscribe button below. [Unsubscribe]( Silver Ridge Media 30 N Gould St, Ste R Ste R Sheridan, Wyoming 82801 United States