Page 14 - April 2022 Issue.indd

DOLLARS AND SENSE by Tolbert Rowe

Inflation is here...consumers will need to adjust spending

On February 24, Vladimir Putin made for decades and provided billions of But this boost in inflation is diff erent.
good on his threat to takeover Ukraine dollars in future revenue to the Russian For the last three months, consumer
and unleashed what has become the economy. prices have been increasing at greater
largest military assault on a sovereign than a 7% rate, topping out in February
The impact of this invasion has driven

country by another country since World at 7.9% March numbers will be out by
the price of gasoline to levels we have

War II. The impact has opened a fl ood the time many of you read this and it is
never seen. $4 per gallon gas, and
of refugees seeking safety the likes my guess that the rate will not be any
possibly higher could be our future for
we have never seen, over 3.5 million the rest of this year. The United States less than 7.9%.

mostly woman and children as of the
imports only about 6% of the oil we You are free to blame inflation on
middle of March. By the time you read
use from Russia, but other European whomever, or whatever you choose. You
this the number certainly will be much
higher. countries rely on much more. Total are completely entitled to your opinion
value of all Russian exports was nearly and your guess on how to make things
This barbaric Russian action is made $500 billion last year. Eliminating that better. What makes this situation more

so much more heinous by the fact that much in raw materials and finished distressing is that our very existence
families are being separated. Women goods from the global economy is being impacted by a lunatic who
and children are being allowed to fl ee will make things we consume more did not get the kind of reaction to a
to safety while sons, husbands, and expensive. Remember the impact on military buildup that he expected. Th e
fathers between the ages of 18 to 60 are real estate prices that a lack of supply of Ukrainians did not back down, and the
prohibited from leaving the country. homes has had? Déjà vu all over again! world has come to their aid.
Although they are required to stay and
The Covid pandemic conditioned us The world had not seen a military
fight, they are doing so willingly to to accept higher priced goods because action against a sovereign nation of
protect their country.
businesses could not produce their this magnitude since World War II. Th e
Economic sanctions have had the eff ect product due to delays in being able world condemned the action swiftly
of turning Russia into a third world to acquire parts and components in and decisively through economic
country and businesses from all over the a timely fashion. We quickly got an sanctions and military assistance.
world have ceased trading with them. education in the global economy as it Russia has been isolated and cannot
Many oil companies have abandoned became next to impossible to purchase economically sustain a long-drawn-
billions of dollars in investments in a new vehicle or any other product that out invasion and occupation without
Russian oil and gas entities. Germany required a computer chip. Businesses foreign trade. There may be only one

has stopped construction of a natural were, and to an extent many still are, out for Putin and that is China. But will
gas pipeline with Russia that would have challenged with having to operate with China take on the role of big brother

provided 30% of German energy needs less than full staffs and readily available and risk global condemnation by
parts and components. making Russia dependent upon them,
and will Putin accept being dependent
on China for his legitimacy to rule?
“Your Mortgage Consultant Since 1985” They did sign an agreement of mutual

support at the opening of the Olympics
Purchase or Refinance in Beijing. I do not think Chairman Xi
realized that Vladimir Putin was about
to amass 200,000 troops on the Ukraine
border two weeks later and force 3.5
million, and counting, refugees out into
the world.
115 E Dover St. Ste 3 - Easton, MD
The Russian invasion of Ukraine means

tolbert@baycapitalmortgage.com C. Tolbert Rowe, that we will need to tolerate infl ation for
www.baycapitalmortgage.com NMLS Vice President/Lending
182844 the foreseeable future. Th e foundation
for higher prices was laid very solidly
410-819-3005 / cell 410-310-3520 last year with the government stimulus
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