The Cares Act could possibly be the vehicle that drives the country right into high inflation. You just can’t make money to pour into the economy without consequences; when you decrease the value of the dollar prices go up.
The Coronavirus shutdown has severely damaged the ability to produce goods and services. This to is going to cause a shortage henceforth price increases.
The financial flu could make the COVED-19 look like a rainy Sunday afternoon. The bank crisis from the way it looks right now, some banks are going to have to be nationalized to survive.
This is not just a United States problem, it is global. 184 countries are facing economic and supply obstacles that are going to have to be dealt with. So it’s supply and demand to the highest bidder.
The one thing that is causing devastation is the fact that we’ve out sourced so much to China. Now China is not sending medical supplies or generic medicines and many other everyday things that we use that are not going to be available. You can’t feed the dragon without getting burned.
The one thing is that until the vital organs of the economy get working again, everyone is going to have to be frugal and buy wisely to feed your family and keep the lights on.
But the one thing hopefully that this has taught us is we can’t live from pay check to pay check. We have to prepare for emergencies at times when things we need are not available. Always prepare for the worst and hope for the best. If you have extra and never have to use it, it is better than not having it and unable to get it. You can’t wait until there’s a crisis to come up with a plan.
Written By: Delmer Eldred