The Inflationary “Needle” Just Touched the Everything Bubble

April 2, 2018 in News by Slad

 

via: Zero Hedge | by Phoenix Capital Research 

 

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.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist