Bitcoin is surging as inflation hits many food commodities. Russia imports 29% of the world’s wheat. The US buys $700 Million worth of fertilizer from Russia per year. Russia was kicked off the SWIFT banking system yesterday. So their Oil imports will be denominated in another non USD currency from now on. Gasoline and food prices will skyrocket from here on out! Below is a chart of the price index of Salmon:
Next is a price index for Wheat:
Remember from a week or so ago. We had a blog that discussed the different types of inflation. They are:
- Asset Inflation: Homes, land, any real estate, stocks on any stock exchange. Asset inflation makes the wealthy wealthier, and keeps the poor poorer because they don’t own these assets!
- Economic Inflation: Gasoline, power, all food. High economic inflation devastates an economy and leads to geopolitical unrest.
- Hyper Inflation: When devaluation of any currency gets bad enough. The cost of living gets unbearably high. For the poor that begins at 5% per month inflation. It may take 20% to 25% per month inflation to hurt the wealthy. Everyone loses in this situation. It is usually the beginning of the end for a Nation State.
Grocery and gasoline indexes are in charts below tracking nine food commodities. Both are at all time highs and expected to keep climbing! We have been warning about this for nearly two years now! See the food and gasoline charts below: