My cheeky ones, my cheeky ones,
I wanted to talk to you about 3 things so you can make the most of your weekend.
So I’ll talk to you about inflation in Germany, the fall of the euro and B the BAC.
For inflation in Germany is at the highest level!
“Inflation in Germany hit a record 7.4% year-on-year in April, driven by rising energy prices exacerbated by the war in Ukraine, which is also raising tensions in supply chains, according to provisional data released. on Thursday. The index gained 0.1 points compared to March, which was already the highest since the reunification of Germany in 1990, according to the statistical institute Destatis. In one month, the rise in prices reached 0.8%. “Source BFM TV here.
I am talking here about official inflation. If we had not dealt with the rise in energy with the freezing of prices for the presidential elections, which will be released at the end of the year, we would have officially had the same inflation rate. I was telling you about 10% inflation. We are there overall.
This inflation is fueled by all the shortages, the war, the Covid in China etc… but also by another phenomenon which is that of the fall of the euro!
The euro is falling!
As you can see in this chart, the euro fell sharply against the dollar and the fall accelerated with the war in Ukraine, the dollar, as always, served as a safe haven. This is proving well. Americans need a lot of money to finance their debt, which the Fed wants to make less money, so seeing investors flock to the United States is great news for them. For us Europeans it is much less good. Not only will we find it difficult to finance our government debt, but our currency is also falling, and once we import almost everything and everything or almost everything we import, we pay in dollars, so … it is an increase in the form of imported inflation .
In one year, the euro lost more than 13%, which means that just because of the negative effect of the exchange rate on us, what we buy in dollars is already 13% more expensive, more than all the other increases!
As a result, just listen from afar to the foolishly optimistic locals who tell you that there is no shortage and that everything will be fine!
At the best prices they will go up.
At worst, you will no longer have what you want to buy, a shortage obliges.
Think BAC, for food, money and fuel.
Always have food in advance, a little money in front of you (keep in mind this story of internet cables being cut in France overnight in many different places) and a little fuel in advance.
Treat you will gain by storing at today prices what you will consume tomorrow. Queue, you will not lose anything since booklet A percentages are much lower than raising your box.
Once again, all this is just an image, a metaphor! Keep that in mind, but just in time and in a timely manner is a good strategy in an inflation-free world where money pays and stock costs. When the situation is reversed, and money brings nothing and prices go up due to inflation, you have to be stubborn not to realize that in this case, stockpiling is the best strategy and the best placement.
I am amazed at the inability of financial agents to start with companies to change their habits.
When there are multiple shortages, price increases, one should not fool those who store stocks, but all those fools who still believe that money brings more than what their shares would bring.
And you know the worst?
They “joke” all day with those who store, with the last one being Leclerc’s boss who accused the naughty restaurants of buying too much oil! Well, we have the smartest restaurants! They are the ones who have the right to spend their money on oil and potatoes instead of leaving their money in the bank at 0% !! In the meantime, even if Father Leclerc grumbles, the restaurants can keep working!
To like them. Prepare, build your endurance, prepare your plans A, B and C, do not let yourself lullaby. No, the condition is neither healthy nor normal and yes the risks are too great!
It’s already too late, but not everything is lost.
“Insolentiae” means “insolence” in Latin
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