Thread by @APompliano

Inflation is probably over 5% right now for the bottom 20% of Americans.

Time for quick thread 👇🏼👇🏼👇🏼

The bottom 20% experiences economic destruction very differently.

For example, "every dollar and more of aggregate gains in household wealth between 2009 and 2011 went to the richest 7 percent of households"

tcf.org/content/commen…

"Recent research also shows that prices have risen more quickly for people at the bottom of the income distribution than for those at the top — a phenomenon dubbed “inflation inequality.”"

groundworkcollaborative.org/resource/the-c…

Companies like Tyson Foods ($30 billion food supplier) increased prices on average by 7.5% in Q1 of this year.

barrons.com/articles/tyson…

Over 20% of all US dollars in circulation were created in the last 14 months.

Price of raw materials and goods leaving China's factories rose 6.8% year on year in April.

ft.com/content/61ca6a…

M2 supply is ridiculous. Just to hammer this home.

aier.org/article/signs-…

"The last time the ISM manufacturing reading was that high was just before a year when gross domestic product grew at a 7.2% pace and inflation was at 3.8%."

cnbc.com/2021/04/01/man…

For historical context, 2008 financial crisis drastically accelerated wealth inequality.

cnbc.com/2018/09/11/fin…

While everyone is arguing over the official inflation numbers, the bottom 20% of Americans are likely experiencing 2x higher inflation than the top 20% of Americans.

Everyone doesn't experience inflation equally.

You can't print trillions without negative side effects.

If you're interested in this type of information, I write about it periodically in the letter that I send every morning to 170,000 investors.

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