Watch Prices

Our President is pushing the notion that everything we buy should be American made. In theory, fine, but here's the snag. Companies will have to pay American workers more, a lot mote, than they pay folks in Malaysia or Guatemala. They, even if they are still seeing obscene profits, will pass that cost onto you. Even of they get that promised huge tax cut, they will pass that increased labor cost onto the consumer. This is not a very moral behavior, but businesses are not known for a deep interest in moral behavior.

So, we will see inflation. When you stop seeing all of those cheap imports from China and India at your local Walmart, you, the consumer, will be aghast. Here's what you need to do.

Inflation tends to spiral. It grows rapidly. The Fed will try to control it by manipulating interest rates. That will work to some degree, but there will be inflation. That raise you just got, if you're lucky, will not seem so big. Neither will your savings, if you have any. Eventually, the cycle will reverse, at least it always has, but no one will know when.

When you see prices rising (do not depend on government statements about interest; they only monitor certain products and services), start buying a few extra items. I am not encouraging hoarding, just stocking up on essentials, non-perishable foods, clothing, etc. Remember, your money will be worth less, so buy while the prices are lower.

Do not resort to credit. Remember, the Fed will be playing games with interest rates. Also, and it pains me to say this, don't worry a lot about saving money until the trend reverses. Remember, a $1000, in a time of inflation, is worth a lot less than it did when you put it in the bank. Also, watch those interest rates. If you lock into an account giving 3% interest and inflation jumps to 5%, you are locked into a losing deal.

For the moment, keep paying down debts and saving a little. Who knows? All of Trump's plans may fall a part and the economy might just keep staggering along as is. But, if you see prices creeping higher, be ready and act.