And the horrifying inflationary data points keep coming!
Over the last few weeks, we’ve outlined the following:
1. If you add up all of the money the U.S. has ever printed… over 40% of it was printed in 2020 alone.
2. In three months in 2020, the U.S. increased its deficit by more than it had during the past five recessions combined (’73, ’75, ’82, early ‘90s and Great Financial Crisis).
3. Under Jerome Powell, the Fed bought more Treasuries in SIX WEEKS than it did in 10 years under Ben Bernanke and Janet Yellen.
4. Agricultural commodities prices are up nearly 40% since August.
5. The Commodity Research Bureau’s Index is up 75% since April.
These items alone are horrifying… and unfortunately for the world, there are a slew of new ones to add to the list.
- Copper traded over $8,900 per tonne last week, hitting a 10-year high.
- That same week, Nickel traded a $18,534 per tonne, a six-year high.
- Lumber cleared $1,000 per 1,000 board feet, for the first time in history.
Best of all… the Fed claims that there are no signs of inflation!
Last week NY Fed President John Williams told CNBC that rising prices are due to “optimism” about the growing economy. He also claimed that inflation expectations are rising but that he sees no evidence that asset prices are “out of control.”
So the financial system is SCREAMING that inflation is already running hot, and the Fed is asleep at the wheel.
It’s only going to get worse.
As I keep stating, once inflation appears in the financial system, the only thing that can stop it is if the Fed begins to tighten monetary conditions much as Paul Volcker did in the late ’70s early ’80s.
Well, the Fed continues to print $120+ billion every single month… and has announced it won’t raise rates for another TWO YEARS!
Two years… as in 2022 to 2023.
Put another way, the Fed is going to be printing another $2.8 trillion ($1.4 trillion per year for two years) going forward. Between this and the Biden administration’s $1.9 trillion stimulus program, $2 trillion infrastructure program, and $1.7 trillion climate change program, we’re talking about ~$7 TRILLION being printed in the next two years’ time.
$7 trillion… an amount equal to 33% of US GDP.
The coming inflation is going to ANNIHILATE most investors’ portfolios.
Those who are properly prepared. however, will make literal fortunes.
The coming inflation is going to ANNIHILATE most investors’ portfolios.
On that note, we just published a Special Investment Report concerning FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead.
The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.
Today is the last day this report will be available to the public. We extended the deadline based on the weekend run in commodities, but this is it… no more extensions.
To pick up yours, swing by:
phoenixcapitalmarketing.com/inflationstorm.html
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research