Episode 81

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Published on:

18th Oct 2022

Inflation is a Problem, a Perfect Storm and the Worldwide Impact

The Consumer Price Index (CPI) was released on Thursday, and while the increases are not large, they do fall in line with predictions. In June, the CPI was 9.1%, in July it dropped slightly to 8.5%, and in August 8.3%. Then in September, it was 8.2%. This doesn't seem bad, until you realize that in the last 12 months, gasoline has risen by 18.2%, household energy by 20.8% and airfare by an eye-watering 42.9%

In today's episode of The Higher Standard, Chris and Saied do a deep dive into these CPI numbers and what they mean for the ongoing fight against inflation.

They discuss the thinking from various pundits and talking heads, who mistakenly believe they recognize the mistakes being made by the Fed as well as what it should and should not do.

Chris and Saied look at recent comments by Ray Dalio, the founder, Co-Chairman and Co-Chief Investment Officer of Bridgewater Associates, in which he has warned of a "perfect storm" that will spread economic pain as the U.S. Federal Reserve raises interest rates. He also said that government stimulus programs during the pandemic have created a bubble.


They discuss a recent article from Forbes reporting that the International Monetary Fund (IMF) downgraded its forecast for the global economy next year and warned inflation will be worse than previously expected due largely to the ongoing disruptions spurred by the war on Ukraine.


Chris and Saied also explore another article claiming that, as home sales fall to the lowest level in years, a rash of industries tied to the housing market are starting to show signs of deterioration, with home builders, appliance makers and some retailers among those likely to take the biggest hit.


Join Chris and Saied for this fascinating conversation.


Enjoy!



What You’ll Learn in this Show:

  • The most recent PPI and CPI numbers and what that means for consumers in light of rising inflation.
  • Why, for the Fed, the cost of doing too little to curb inflation outweighs the cost of doing too much.
  • Why the IMF has downgraded its forecast for the global economy next year and what effects that will bring.
  • What’s driving the current housing market correction in several major markets.
  • And so much more...


Resources:

"Where Inflation Is... and Isn't" (Yahoo! Finance via Instagram)

"PepsiCo Raises Forecasts After Q3 Boosted by Higher Prices" (article from US News)

"Bridgewater's Dalio warns of a 'perfect storm' for economy" (article from Reuters)

"‘Ridiculously stupid’ economic policies have the U.S. hurtling toward a ‘perfect storm’ of economic pain, Ray Dalio says" (article from Fortune)

"Housing Market ‘Contagion’: Collapse Threatens Spillover Effects In These Major Industries" (article from Forbes)

"Home prices are falling fastest in these 10 U.S. cities" (article from CBS News)

"MBA: Mortgage Credit Availability was Never Excessive During the Recent Housing Boom" (article from CalculatedRISK)

"‘Worst Is Yet To Come’: IMF Cuts Economic Outlook And Warns Global Inflation Still Hasn’t Peaked" (article from Forbes)

"S.Korea delivers another big hike but offers dovish hints" (article from Reuters)

"Highest Availability Ever Reported for LA Office Space" (The Real Deal via Instagram)

"Strikes, possible blackouts and a plunging currency: Brits are being hit by a wave of bad news" (article from CNBC)

"It’s bad enough mortgage rates are over 7% – now it’s harder to qualify for a home loan" (article from CNBC)

"Wholesale prices rose 0.4% in September, more than expected as inflation persists" (article from CNBC)

"Inflation increased 0.4% in September, more than expected despite rate hikes" (article from CNBC)

"Social Security recipients get 8.7% cost-of-living increase, the highest in more than 40 years" (article from Invest Ahead)

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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your hosts; Chris Naghibi and Saied Omar here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

About your host

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Christopher Naghibi

Christopher M. Naghibi is the host and founder of The Higher Standard podcast — a rapidly growing media platform delivering unfiltered financial literacy, real-world entrepreneurship lessons and economic commentary for the modern era.

After nearly two decades in banking, including his most recent role as Executive Vice President and Chief Operating Officer of First Foundation Bank (NYSE: FFWM), Christopher stepped away from corporate life to build a brand rooted in truth, transparency, and modern money insights. While at First Foundation, he had executive oversight of credit, product development, depository services, retail banking, loan servicing, and commercial operations. His leadership helped scale the bank’s presence in multiple national markets from $0 to over $13 billion.

Christopher is a licensed attorney, real estate broker, and general building contractor (Class B), and he brings a rare blend of legal, operational and real estate expertise to everything he does. His early career spanned diverse lending platforms, including multifamily, commercial, private banking, and middle market lending — holding key roles at Impac Commercial Capital Corporation, U.S. Financial Services & Residential Realty, and First Fidelity Funding.

In addition to his media work, Christopher is the CEO of Black Crown Inc. and Black Crown Law APC, which oversee his private holdings and legal affairs.

He holds a Juris Doctorate from Trinity Law School, an MBA from American Heritage University, and two bachelor degrees. He is also a graduate of the Yale School of Management’s Global Executive Leadership Program.

A published author and sought-after speaker (unless it’s his son’s birthday), Christopher continues to advocate for financial empowerment. He’s worked pro bono with families in need, helped craft affordable housing programs through Habitat for Humanity, and was a founding board member of She Built This City — helping spark interest in construction and trades for women of all ages.