inflation

The Great Debt Crisis of Our Lifetimes is Coming!

Over the last week, we’ve warned investors that the Fed’s actions are unleashing another round of inflation in the U.S. financial system.

By quick way of review.

  1. The only part of the inflation data that is declining year over year is Energy prices. Every other segment of the Consumer Price Index (CPI) continues to rise.
  2. Financial conditions are as loose today as they were when the Fed first started raising interest rates in March 2022. And yet, the Fed is preparing to cut rates instead of raising them.
  3. The Fed is still providing hundreds of billions of dollars in liquidity to the financial system via credit facilities.
  4. The Fed’s own research indicates that food inflation is the best predictor of future inflation. And agricultural commodities are skyrocketing to new highs.

Unfortunately for Americans, the Fed isn’t the only entity that is engaged in inflationary policies. The Biden administration is currently engaged in truly extraordinary levels of money printing.

The Biden administration has added $6 trillion to the national debt since taking office.  Bear in mind, this is happening at a time when the U.S. is collecting a record amount in taxes. So, the Biden administration is not only spending all of the tax dollars collected, it’s spending so much money that the U.S. is having to issue record amounts of debt!

The below chart needs no explanation. This is simply not sustainable.

Indeed, the pace of debt issuance is speeding up not slowing. The Biden admin issued $3 trillion in new debt in between 2021 and 2023. It added another $4 trillion in new debt in 2023 alone. At this pace. the U.S. will hit $40 trillion in debt some time in mid-2025.

Indeed, the pace of debt issuance is speeding up not slowing. The Biden admin issued $3 trillion in new debt in between 2021 and 2023. It added another $4 trillion in new debt in 2023 alone. At this pace. the U.S. will hit $40 trillion in debt some time in mid-2025.

The good news is that those investors who are properly positioned for this stand to generate truly EXTRAORDINARY returns in the coming months.

On that note, we recently published a Special Investment Report detailing three investments that will profit from this rampant government spending. Normally this report would cost $499, but we are giving copies FREE to anyone who joins our daily market commentary.

To pick up your copy, go to:

CLICK HERE NOW!

Graham Summers

Chief Market Strategist

Phoenix Capital Research, MBA

Posted by Phoenix Capital Research in Central Bank Insanity, Inflation

Here’s Proof the Fed is a Political Entity… and It Leans LEFT

By Graham Summers, MBA

It’s time to tell the truth when it comes to Fed political interventions.

One of the biggest myths concerning the Fed is that it is politically independent. This is laughably false to anyone who has paid attention during the last 25 years.

Consider that in 2012, the Bernanke-led Fed announced QE 3, its largest QE program in history at the time (an $80 billion per month, open-ended program), a mere THREE MONTHS before the U.S. Presidential election.

Bear in mind, the U.S. economy was growing and the U.S. financial system wasn’t under significant duress at the time. So this was blatant political interference to aid the Obama Administration’s re-election bid by boosting the stock market and economy.

A second major example of Fed political bias concerns its major shift in monetary policy once Donald Trump became President. To fully grasp this, we need to provide a little historical context.

Between 2008 and 2016, the Fed engaged in eight years of extraordinary monetary easing, maintaining interest rates of 0.25% (zero), and engaging in over $3 trillion worth of QE from 2008 to 2015. Bear in mind that throughout this time, the U.S. economy was technically NOT in recession. Economic growth was steady:

And the unemployment rate was in a clear downtrend:

Once the Fed actually ended easing, it embarked on one of the feeblest campaigns of tightening monetary policy in history, raising rates only one time in 2015 and 2016. I would note that all of this took place under the Obama administration.

Then Donald Trump won the 2016 Presidential election, and suddenly the Fed “got religion” about normalizing monetary policy. It raised rates three times in 2017 and another four times in 2018. In 2018 it also began shrinking its balance sheet via a process called Quantitative Tightening or QT. It would ultimately drain $500 billion in liquidity from the financial system via QT in 12 months. That is quite a shift considering the Fed had maintained rates at or close to ZERO for eight years prior to this.

Throughout 2016-2018, the Fed ignored numerous signals that this pace of tightening was placing the financial system under duress, right up until the junk bond market froze and the U.S. stock market crashed 20% during the holidays in December 2018.

For those who would argue that the Fed’s sudden shift from maintaining easy monetary policy for the better part of a decade to aggressively normalizing policy in the span of 20 months had nothing to do with Donald Trump being President, consider that former Fed Vice Chair Stanley Fisher admitted in an interview that the Fed’s raising rates in December 2018 was done specifically to hurt the economy because the Fed was annoyed with President Trump’s constant tweeting about them.

So again… the Fed IS a political entity… and it leans LEFT.

I’ll detail what this means investors as we head into the 2024 President election in tomorrow’s article. But for now, gold is giving us a clue.

The good news is that those investors who are properly positioned for this stand to see extraordinary gains.

On that note, the FREE copies of our Special Investment Report detailing three investments that will profit from the next round of inflation are rapidly being reserved. So if you want reserve one, you better move fast!

To pick up your copy, go to:

https://phoenixcapitalmarketing.com/inflationstorm.html

Graham Summers

Chief Market Strategist

Phoenix Capital Research, MBA

Posted by Phoenix Capital Research in Banana Republic Corruption, Central Bank Insanity, Inflation

The Fed is Creating an Inflationary Storm

The Fed is rapidly losing control.

Core inflation has already broken above 2% despite a complete collapse in commodity prices (the cost of living for many household items).

united-states-core-inflation-rate

This happened when OIL was also  imploding.

oil-collapse2
———————————————————————–

The Single Best Options Trading Service on the Planet

 THE CRISIS TRADER has produced an astounding 300% return on invested capital thus far in 2016.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades. And thanks to careful risk management we’ve seen triple digit returns on invested capital every year since inception.

Our next trade goes out this morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30-day trial subscription to  THE CRISIS TRADER

CLICK HERE NOW!!!

———————————————————————–

Why does this matter?

Because core inflation is ABOVE 2% at a time when commodity prices were FALLING. The Government HAS TO adjust its models to account for this so that ANY RISE in commodity prices will PUSH inflation to the upside.

Speaking of which, since bottoming in February, Oil is up over 38%. Industrial metals are up 8%.

commoditybounce3

Put simply, the inflation genie is out of the bottle. Core inflation is already moving higher at a time when prices of most basic goods are at 19-year lows. Any move higher in Oil and other commodities will only PUSH core inflation higher.

The Fed is cornered. Inflation is back. And Gold and Gold-related investments will be exploding higher in the coming weeks. Indeed, I’ve already alerted subscribers of my Private Wealth Advisory newsletter to two such plays that resulted in gains of 11% and 41% in just six week’s time.

This is nothing new for us, in the last 17 we’ve closed  out  77 straight winning trades.

Did I say, “77 straight”winning trades”?!?

Yes, I did.

For 16 months, not only have Private Wealth Advisory subscribers locked in 75 CONSECUTIVE winners including gains of 18%, 36%, 69%, even 119%...

And I’ve got three more winners (#’s 78, 79, and 80) on deck as I write this.

But more importantly, throughout that ENTIRE TIME we’ve not closed a SINGLE loser.

77 closed winners… and not one closed loser… in 17 months.

Based on what’s happening in the markets today, we’ve decided to extend our deadline on our current offer to try Private Wealth Advisory by another 24 hours.

So tonight (Monday) at midnight, we are closing the doors on our offer to try Private Wealth Advisory for 30 days for just $0.98.

This is it… no more extensions… no more openings.

To lock in one of the remaining slots…

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Our FREE e-letter: http://gainspainscapital.com/

Follow us on Twitter: http://twitter.com/GainsPainsCapit

Posted by Phoenix Capital Research in It's a Bull Market