Inflation

The big message from Fed Chair Jerome Powell and Treasury Secretary Steve Mnuchin’s testimonies to congress yesterday was the following…

Even more money will soon be flowing into the economy.

Both Powell and Mnuchin were adamant that the recovery requires additional fiscal stimulus. Powell stated that the economy would likely slide back into recession without another stimulus program, while Mnuchin emphasized that the next stimulus program should target children and jobs.

So again… even more money will soon be flowing into the economy.

Remember, the U.S. government has already employed a $2.2 trillion stimulus program. A second stimulus program ranging from $1 trillion to $2 trillion is currently being held up by congress. But it is clear that both the Fed and the Treasury feel that this money needs to be released soon.

And this is going to unleash inflation.

As I’ve written previously, the big difference between policymakers’ response to the 2008 crisis and their response to the COVID-19 pandemic is that this time around, much of the money being printed has actually made its way into the economy.

This is why the $USD has plunged while inflation hedges like gold have exploded higher.

Both of these trends are taking a breather right now (nothing goes straight up or straight down in the markets). But the comments from the Fed and the Treasury have made it clear that they want even MORE money to be funneled into the economy as soon as possible.

Which means… more money printing, which means a lower $USD, which means higher inflation.

Investors now have a decision… do they try to bet against the Fed AND the Treasury… or do they take steps to profit from what will be the biggest trend of the next 12 months?

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 39 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The single biggest issue for the world today is that there is too much debt in the financial system. Some eye-water facts:

Globally the debt to GDP ratio is 322%. 

Amongst G-7 nations, the numbers are striking.

• The U.S.’s Debt to GDP is 106%
• Germany’s Debt to GDP is 61%
• Japan’s Debt to GDP is 196%
• The United Kingdom’s Debt to GDP is 85%
• Canada’s Debt to GDP is 89%
• France’s Debt to GDP is 98%.

The only one that looks remotely decent is Germany and that’s because the country has been aggressively paying down its debt. During the 2008 crisis, Germany’s debt to GDP skyrocketed to 82% as its economy collapsed and it went on a Debt binge.

Put another way, of the seven largest developed nations, only one of them has a debt to GDP below 85%… and that is very likely to change during its next major recession.

Again, the world has too much debt. No major nation is an exception.

Now there are three ways to deal with excessive debt.

1)    Pay it off through growth or fiscal restraint.

2)    Default/ restructure.

3)    Attempt to inflate it away by debasing your currency.

Of these, the only viable option is #3.

This sounds like a complicated idea, but really, inflating the debt away means money printing.

Think of it this way. Let’s say you owe $1,000 in debt. Now imagine that the dollar loses 50% of its value. You still owe $1,000 in debt, but because each unit of debt is worth so much less, your REAL cost of the debt is only $500 in today’s terms.

This is the only option major nations have today. And it’s one that policymakers LOVE to use as the COVID-19 pandemic has revealed.

Consider the following…

In response to the Great Financial Crisis of 2008, central banks printed $12 trillion in new money from 2008 to 2012.

They’ve already printed HALF of this in six months ($6 trillion and change) in response to the COVID-19 pandemic. And when you include stimulus programs, the number swells to $15 trillion.

This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 17 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The single biggest issue for the world today is that there is too much debt in the financial system. Some eye-water facts:

Globally the debt to GDP ratio is 322%. 

Amongst G-7 nations, the numbers are striking.

• The U.S.’s Debt to GDP is 106%
• Germany’s Debt to GDP is 61%
• Japan’s Debt to GDP is 196%
• The United Kingdom’s Debt to GDP is 85%
• Canada’s Debt to GDP is 89%
• France’s Debt to GDP is 98%.

The only one that looks remotely decent is Germany and that’s because the country has been aggressively paying down its debt. During the 2008 crisis, Germany’s debt to GDP skyrocketed to 82% as its economy collapsed and it went on a Debt binge.

Put another way, of the seven largest developed nations, only one of them has a debt to GDP below 85%… and that is very likely to change during its next major recession.

Again, the world has too much debt. No major nation is an exception.

Now there are three ways to deal with excessive debt.

1)    Pay it off through growth or fiscal restraint.

2)    Default/ restructure.

3)    Attempt to inflate it away by debasing your currency.

Of these, the only viable option is #3.

This sounds like a complicated idea, but really, inflating the debt away means money printing.

Think of it this way. Let’s say you owe $1,000 in debt. Now imagine that the dollar loses 50% of its value. You still owe $1,000 in debt, but because each unit of debt is worth so much less, your REAL cost of the debt is only $500 in today’s terms.

This is the only option major nations have today. And it’s one that policymakers LOVE to use as the COVID-19 pandemic has revealed.

Consider the following…

In response to the Great Financial Crisis of 2008, central banks printed $12 trillion in new money from 2008 to 2012.

They’ve already printed HALF of this in six months ($6 trillion and change) in response to the COVID-19 pandemic. And when you include stimulus programs, the number swells to $15 trillion.

This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 17 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The biggest news for the markets right now concerns the Fed and inflation.

For the last 20 years, the Fed has argued that it is targeting an inflation rate of 2%. 

Everyone knows that the real rate of inflation is well above this level. But the Fed is the Fed. And as the primary director of the financial system, the Fed’s target rate of inflation is used as a baseline for all major portfolio managers.

Which is why the following story is of MAJOR import:

Powell set to deliver ‘profoundly consequential’ speech, changing how the Fed views inflation

He is expected to outline what could be the central bank’s most active efforts ever to spur inflation back to a healthy level.

“Average inflation” targeting means the Fed will allow inflation to run higher than normal for a period of time.

Source: CNBC.

In simple terms, the Fed is broadcasting that it is going to unleash inflation in a big way.

How big?

The media is presenting Jerome Powell as the antithesis of former Fed Chair Paul Volcker. Volcker is famous for stopping the runaway inflation of the late 1970s/early 1980s when interest rates rose to 19%.

And Jerome Powell is being presented as the OPPOSITE of Volcker. This means Powell is signaling that he is perfectly happy to let the inflation genie out of the lamp.

This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.

Indeed, gold has already exploded higher to over $2,000 per ounce. Imagine where it and other inflation hedges will go by the time the Fed has REALLY turned on the printing presses.

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 29 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

It’s Official: the Fed is Going to Unleash an Inflationary Storm

The biggest news for the markets right now concerns the Fed and inflation.

For the last 20 years, the Fed has argued that it is targeting an inflation rate of 2%. 

Everyone knows that the real rate of inflation is well above this level. But the Fed is the Fed. And as the primary director of the financial system, the Fed’s target rate of inflation is used as a baseline for all major portfolio managers.

Which is why the following story is of MAJOR import:

Powell set to deliver ‘profoundly consequential’ speech, changing how the Fed views inflation

He is expected to outline what could be the central bank’s most active efforts ever to spur inflation back to a healthy level.

“Average inflation” targeting means the Fed will allow inflation to run higher than normal for a period of time.

Source: CNBC.

In simple terms, the Fed is broadcasting that it is going to unleash inflation in a big way.

How big?

The media is presenting Jerome Powell as the antithesis of former Fed Chair Paul Volcker. Volcker is famous for stopping the runaway inflation of the late 1970s/early 1980s when interest rates rose to 19%.

And Jerome Powell is being presented as the OPPOSITE of Volcker. This means Powell is signaling that he is perfectly happy to let the inflation genie out of the lamp.

This is going to unleash an inflationary storm that will send inflation hedges like gold and silver (and their miners) THROUGH THE ROOF.

Indeed, gold has already exploded higher to over $2,000 per ounce. Imagine where it and other inflation hedges will go by the time the Fed has REALLY turned on the printing presses.

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 29 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The Fed now has a major problem on its hands.

That problem is the fact that gold is ripping higher.

Americans see gold as a measure of inflation. Food prices, car prices, home prices, stock prices, practically the price of anything can rise and the average American won’t think “inflation.”

It’s a different story with gold.

Once gold starts ripping higher to the point that the average American notices it… then everyone and their mother starts talking about inflation getting out of control.

We are at that point now. Gold is going absolutely vertical. And it has just hit new all-time highs, rising almost $500 from its March lows.

This is a signal that the market is “smelling” higher inflation. And because gold is now grabbing headlines, the average American is waking up to this fact.

Which means…

The Fed will now either be forced to confront inflation (hike rates or tighten policy) OR it will begin to lose control.

Tightening monetary policy would mean kicking the already weak economy just as it’s getting back on its feet. This is a guaranteed “depression” trigger and stock market crash.

On the flip side, ignoring gold’s move higher means letting inflation get out of control. Can the Fed afford to let the inflation genie out of the bottle? The last time it did this was in the 1970s, and it didn’t stop until the Fed had raised interest rates to 19%.

This is a literal “no win” situation for the Fed. One choice leads to a depression/ crash. The other leads to stag-flation at best.

Our money is on stag-flation.

We believe the Fed would rather risk letting inflation get out of control rather than triggering a depression. The Fed has always adopted a “kick the can” mentality when it comes to major problems.

Inflation will prove no different. Which is why we believe inflation will continue to spiral out of control in the coming months.

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 9 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The Fed now has a major problem on its hands.

That problem is the fact that gold is ripping higher.

Americans see gold as a measure of inflation. Food prices, car prices, home prices, stock prices, practically the price of anything can rise and the average American won’t think “inflation.”

It’s a different story with gold.

Once gold starts ripping higher to the point that the average American notices it… then everyone and their mother starts talking about inflation getting out of control.

We are at that point now. Gold is going absolutely vertical. And it has just hit new all-time highs, rising almost $500 from its March lows.

This is a signal that the market is “smelling” higher inflation. And because gold is now grabbing headlines, the average American is waking up to this fact.

Which means…

The Fed will now either be forced to confront inflation (hike rates or tighten policy) OR it will begin to lose control.

Tightening monetary policy would mean kicking the already weak economy just as it’s getting back on its feet. This is a guaranteed “depression” trigger and stock market crash.

On the flip side, ignoring gold’s move higher means letting inflation get out of control. Can the Fed afford to let the inflation genie out of the bottle? The last time it did this was in the 1970s, and it didn’t stop until the Fed had raised interest rates to 19%.

This is a literal “no win” situation for the Fed. One choice leads to a depression/ crash. The other leads to stag-flation at best.

Our money is on stag-flation.

We believe the Fed would rather risk letting inflation get out of control rather than triggering a depression. The Fed has always adopted a “kick the can” mentality when it comes to major problems.

Inflation will prove no different. Which is why we believe inflation will continue to spiral out of control in the coming months.

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 9 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The market finally poked its head above major resistance (red line in the chart below) yesterday. We now need to wait to see if there is follow through today.

For certain stocks remain in an uptrend (blue line in the chart above).  But without follow through on this breakout, we could easily see a retest of the blue trendline.

The more dramatic development concerns precious metals.

Silver in particular has begun to go vertical, erupting above resistance (red line in the chart below). THIS is where you need to be looking if you’re trying to see major gains fast. 

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation 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 through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 29 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The market finally poked its head above major resistance (red line in the chart below) yesterday. We now need to wait to see if there is follow through today.

For certain stocks remain in an uptrend (blue line in the chart above).  But without follow through on this breakout, we could easily see a retest of the blue trendline.

The more dramatic development concerns precious metals.

Silver in particular has begun to go vertical, erupting above resistance (red line in the chart below). THIS is where you need to be looking if you’re trying to see major gains fast. 

On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation 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 through care investing in the precious metals sector and precious metals mining.

We are making just 100 copies available to the public.

There are just 29 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research