This article is not meant to frighten but rather to warn my readers and business owner clients to prepare for what's coming.
Since the beginning of the year I have been watching and writing about what I'm seeing in the marketplace. I'm the "eyes and ears" for a lot of what's going on because I speak with business owners like yourselves from many different industries across North America & Canada. Inflation is here and it's definitely NOT "transitory" which is the BS narrative preferred by the Federal Reserve and their media accomplices. I suppose that is to be expected considering it's the Fed who has been printing MASSIVE SUMS of newly printed Dollars (actually they don't even bother printing anymore, it's all digital so not even worth "the paper it's printed on" anymore):
"The US dollar is the world's reserve currency and the US dollar is expanding... it was expanding 10% a year for a decade... it's now expanding at 14% a year and expanded 34% over the past 12 months..." (40% of all Dollars ever produced were created in the last 12 months causing massive purchasing power destruction)
So now, the middle class in this country is about to get hit with the perfect storm of rising cost of living expense, stagnating incomes and new onerous covid restrictions which have decimated demand in a host of industries. These folks are business owners' life's blood:
"...the currency is to the economy what your blood is to your body... and economic energy or money is to the currency what oxygen is to your blood."
"So, common sense says that, if I keep sucking the oxygen out of the room, you're going either suffocate or freeze to death..."
Here's the best way to deal with the problem of maintaining margins while price increases and demand falls: Fixed rate working capital - Using capital with a fixed cost to purchase materials, supplies & services whose cost is rising fast creates a ballast on your balance sheet and keeps pricing power profitable for your business.
Let's talk about your business needs and find the optimal terms to help weather this storm. Don't expect to get helpful information from the government, they're flying blind right now because despite all the new Dollar bills they've sprayed like a fire hose into the market, nothing is working! Last week's job report was dismal with less than 250k new jobs created compared to over 550k expected.
Opportunities are definitely out there for business owners who have cash. Right now many experienced, capable and hugely productive employees can be found who would have never been available if it weren't for the mandates. Those who capitalize and hire these folks will have a big competitive advantage moving forward.