How inflation is affecting everybody!.

So we are now in the end of April 2022 and the world is falling apart as we know it!.

Does it sound harsh?, it does but it is also the truth that we have never have this many problems at once that are interlinking the world around us!.

We had Covid-19 for two years time, and then he have a raging inflation caused by bad energy policies and cheap money in the US and in Europe.

On top of that we have a war raging in Ukraine that we have not seen since the second world war 80 years ago.

And if that was not enough, the US crime rate is back at late 80s and early 90s levels, never thought i see that day again!.

The gas price of 5-7 dollars is insane at the moment and families are suffering with both gas and food prices increasing much faster that their paychecks are.

We can already see that families are cancelling their subscription services for Netflix,Hbo,Disney and others to try and use that money for gas instead.

The people that we are being shown on tv and as influencers on social media are showing off money like there is no tomorrow, this is not the real world of America.

The average household income differs a lot, but lets put it at 65.000 USD pre tax for two adults from the working class and 95.000 USD pre tax for a middle class couple.

Raising kids and paying of a mortgage and car payments Ain”t easy on these incomes when the inflation is almost +10%.

The problem we have is that there is no quick fix to these issues due to us having to live with bad politician’s who are only looking out for themselves.

So no doubt in our minds that the republicans will win everywhere in the midterms and Trump will win the 2024 president election again.

The democrat’s have no future in the upcoming 5 elections.

So first Trump will win then Ron Desantis will take over after that and sit two terms.

The issue with this is that there is more than 2.5 years until TRUMP takes office again and starts drilling so the gas prices goes down again.

And a lot can happen until then.

The kind of pain the average family will feel financially in the upcoming 3 years is goanna be much worse than the financial crisis of 2008-2011.

We are goanna see the issues with gas and heating bills increase a lot during the upcoming few years time.

And the one thing we tell our business clients owners of small businesses is to buckle up, because it will be a very bumpy ride!.

The four walls will be what the American and European working and middle class will focus on and we are goanna see a lot of businesses go under who offer entertainment, because that is one cost families will not be able to carry between the years 2022-2025.

Also we will see more kids enrolling in public schools because private education will be to expensive for most families to carry.

So food ,gas, heating and mortgages will be the four walls, if we are looking ahead a few years time.

Most likely we will see the light at the end of tunnel around 2026-2027 and around 2028-2029 it will look a bit better again.

So what can we learn about this crisis?, we can learn that republicans can rule the economy and if you are not butt hurt from a few mean tweets you can live a pretty good life under the republicans.

We have also learned that the democrats a side from a few brave men and women are not able to lead America when it comes to finances and prosperity.

I agree with the republicans on most issues besides universal healthcare.

Universal healthcare is something America needs to fix, because the healthcare bill is 10X compared to the same bill for many countries in Europe based on capita.

Even the most hardcore democrats who have always voted blue!, will vote Red!, in the upcoming midterms and in the next presidential election.

What we have told all our business clients this month is the following!.

How Inflation is affecting us all!.

No1: Right now there is massive inflation raging all over the world, but the deflation will come next year.

So don`t buy to much inventory/stock with the 2022 prices in mind.

Demand will go down next year 2023.

No2: Debt!, avoid taking on more debt, rather let the deal pass, if you have to borrow for raw material and other expenses.

The market you are working in , with your small to medium size business can see a drop in demand by 50% by the end of 2022.

This is just a simple fact to keep in mind, that once the products or services you supply gets to high in price, customers wont buy anymore.

No3: Avoid to complicated deals with long-run time , since this world is moving so fast at the moment we can not say what the situation is 6-9 months from now.

One of our clients produces tractor parts and his suppliers has a 11 months delivery time to him.

We have advised him to be careful with new orders, because they can be cancelled along the way, because he has then 12-13 months delivery time out to customers.

So the inflation is kicking us all in the head at the moment and every month becomes more absurd that the last!.

This is where we are in Early May 2022, a world that is totally upside down!.

As always we are here for you small and medium sized business owners or hired management for medium sized companines.

You find some of our products in our webshop.

We work with both domestic and global clients in many different businesses.

So just dont ask us about fashion or beauty then we can not help you LOL!, otherwise we got you covered.

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Take care everybody.

Mrlifeadvise.