The Inflation “Needle” Just Touched The Everything Bubble

April 2, 2018

The Fed is lying about inflation.

How do I know?

Because several of the Fed’s OWN in-house inflation measures are roaring.

  • The New York Fed’s UIG inflation measure is currently clocking in at 3.06%.

  • The Atlanta Fed’s “sticky” inflation measure is growing at an annualized rate of 2.2%.

  • Even the Fed’s heavily massaged Personal Consumption Expenditures (PCE) metric is growing at 1.8% on an annualized basis, only slightly below the Fed’s so-called target rate of 2%.

So when I read that “inflation is subdued” or isn’t “rising fast enough” to warrant concern, I know the Fed officials claiming this aren’t even bothering to look at the Fed’s own data.

Even if you don’t believe the Fed’s data, the $199 TRILLION Bond Market is SCREAMING inflation.

The yield on the all-important 10-Year US Treasury has made a confirmed break above its long-term downtrend.

Bond yields trade based on inflation. And this chart is telling us that inflation is spiking higher.

This is not an isolated issue either.

The yields on the 10-Year German Bund, 10-Year Japanese Government Bond, and 10-Year UK Gilt are all rising to test their long-term downtrends.

If these trendlines break (as I expect they will in the coming weeks) it will mark the beginning of the end for The Everything Bubble.

All told, there is over $199 trillion in debt outstanding and an additional $500+ trillion in derivatives trading based on these bond yields.

So when this bubble bursts (as all bubbles do) we will experience a crisis many magnitudes worse than 2008.

Suffice to say, the opportunity to make MASSIVE gains from this trend is HUGE.

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Graham Summers is Chief Market Strategist for Phoenix Capital Research, an independent investment research firm based in the Washington DC-metro area with clients in 56 countries around the world.

Graham’s clients include over 20,000 retail investors as well as strategists at some of the largest financial institutions in the world (Morgan Stanley, Merrill Lynch, Royal Bank of Scotland, UBS, and Raymond James to name a few). His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Glenn Beck Show and more.

The melting point of gold is 1337.33 K (1064.18 °C, 1947.52 °F).

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