Vaccine injuries and deaths are causing inflation through supply shocks and reduced labor participation: Dowd

Three million more disabled in US since jab started; Fed should be loosening monetary policy, not tightening, says Blackrock ex-manager (Updated 7/4/22)

In a video interview, investor and former Blackrock executive Edward Dowd explains how current US consumer price inflation is caused by product supply chain shortages from:

• vaccine injuries, deaths, and mandates harming the workforce;

• war sanctions on Russia reducing imports of wheat, energy, and fertilizer inputs; and

• Joe Biden’s cutting off US oil and gas production and pipelines.

Contrary to Peter Schiff’s false narrative, higher prices of goods and services are not due to excess money creation by the Federal Reserve, says Dowd, as evidenced by the dollar’s strengthening relative to other currencies, not weakening, with price inflation.

Dowd:

That says to me this is not a monetary phenomenon. This is a policy-induced phenomenon.

The massive amounts of Fed-printed money since 2008 have been soaked up by banks and corporations for stock buybacks and have barely trickled into ordinary citizens’ hands, meaning this is not a primary source of US consumer price inflation.

In addition, foreign demand for US dollars as the global reserve currency — to pay for dollar-denominated debt and commodity contracts — exceeds even large supply increases, creating deflationary price pressures. This is the dollar milkshake theory.

Dowd video, starting at 1:20:

We saw, in the second half of ‘21, insurance companies reporting anywhere between 25% and 40% excess mortality in their group life arm. …

And the reason that's important is these are working age people; these are people that are employed and have good jobs.

They're not overdosing on fentanyl and not deciding to commit suicide all at the same time.

They're not missing their cancer treatments and all that noise. These are the excuses to give cover to what's going on in corporate America.

And so the insurance company saw these losses.

I saw them. I also looked at funeral home companies. …

So we had a [death] spike in the second half of last year. There was between 25 and 40 [percent excess deaths compared to baseline rates from previous years].

It's leveled off, but it's still a 20% excess mortality.

That's because the [vaccine] mandates hit, and a lot of people were dragged in all at once.

Now we have a run rate of about 20% excess mortality that's confirmed by the CDC numbers, funeral home numbers, and insurance company numbers.

Then somebody did an independent study I saw recently, suggesting 20 percent is the number. …

We're not even talking about the disabilities associated with this. …

My [Wall Street insurance analyst] colleague and I my discovered the Department of Labor Statistics database that showed [excess disabilities in] a household survey, so it's kind of clean and pure.

They don't have an axe to grind because they just ask questions.

They asked if people had disabled people in their household, and that number increased by 3 million since the jabs went into effect.

And the rate of change is pretty alarming. And it's sustaining at this level.

So we have deaths and injuries at a sustained level right now. And this is a disaster from a humanitarian aspect.

It's a disaster from an economic aspect because if you're wondering what's causing a lot of the inflation, it’s not only the Biden policies and the EU energy policies and the Ukraine war causing this.

We have people in the labor force who can't work.

That's causing supply chain shortages, which cause all sorts of bottlenecks that raise prices.

So this is a disaster on so many fronts.

Dowd at 6:30:

It's the end of the monetary system as we know it because it's a debt based monetary system. It needs constant credit creation.

And basically, we're at the end.

There’s gonna have to be a new monetary system, a new Bretton Woods, so to speak.

This is the collapse of that.

And defaults are coming. They're going to start in other countries first and make their way here. …

What's interesting about this commodity cycle [is] people claiming it's a monetary phenomenon.

Well, if it's a monetary phenomenon, why is the US dollar relative to other currencies on a tear?

The CRB [Commodity Research Bureau index] is the basket of commodities index that I follow. The CRB has advanced 211% since the 2020 low.

That's the largest commodity cycle advanced we've ever seen.

And it's not over yet. …

The US dollar has gone up concurrently [to] levels we haven't seen since 2002. …

That says to me this is not a monetary phenomenon. This is a policy-induced phenomenon.

So the energy policies of Biden, the EU, and now the Ukraine war are literally causing supply shocks.

In addition, you throw on the COVID vaccines and all the injuries I'm talking about.

We have just horrendous inflation.

So the Fed, believe it or not, should be loosening monetary policy, not tightening. …

It's a twin policy error: we have we have politicians making errors in their policies and the Fed tightening into a credit contraction due to those political policies.

So it's gonna be a disaster.

We're gonna see a huge amount of defaults, bankruptcies, collapse of the economy.

And by the time the Fed figures it out, they'll go the other way.

They'll abandon QT [quantitative tightening]. They’ll abandon their interest rate hikes.

End of the year, they'll be full on QE [quantitative easing], monetary easing.

Now people will think that's bullish, but there's a policy lag effect, and the markets will still go down even once they start moving that way.

So don't get head faked into buying stocks because the Fed is gonna do QE again.

It will take time because of all the damage they've done. …

Oh yeah, the Fed is gonna reverse policy before the end of the year.

We're already in recession.