The Fed is Lying | Market Rundown
SPECIAL FRIDAY PREMIUM POST
Housekeeping: Please listen to today’s GoldFix Broadcast for some news.
Market Rundown:
Good Morning. As of this writing. The dollar is very strong. Bond yields have spiked. Stocks are down 50 to 100 bps. Gold is down $2 after being down $8. Silver is down 29cents. Crude is up 33 cents. Nat Gas is down 2 cents. Crypto is crushed down 7%. Grains are violently mixed ( Wheat versus Soy specifically)
WHY:
German inflation blew the roof off expectations. This translates into more fears of global inflation. Which then implies the Fed may not be able to back off inflation fighting as soon as the market hoped.
WHY IT’S IMPORTANT
Obvious: inflation is inflationary
Next Level: US leads in its own inflation prevention so what EU is dealing with is somewhat water under the US bridge.
Top Level: Inflation is inflationary
META TAKE:
“The Fed would, in order to get inflation down to the 2% target, have to crush the economy" Ann-Katrin Petersen, BlackRock- Source
Real or imagined, the Fed’s 2% target is not going to happen. It's a Fairy tale. What is more, once they admit it ( they can't right now) stocks will explode blowing the cover on their goal of keeping asset prices down as incentive to get people to work again. It's all a joke. More on this another time. But let’s put it this way: there are economic indicators the Fed cannot suppress1 telling you it's all a lie created to obfuscate and placate. It is a house of cards being taken down in controlled demolition.
CONCLUSION:
Either inflation normalizes at a significantly higher baseline, unemployment normalizes as being “full employment” closer to 5 or 6%, or we get a torrid stagflationary recession worse3 than the 1970s as the market resets itself on the backs of its citizens while leaders continue to delude themselves that all is well.
Excerpts:
Last few days we’ve had a couple pieces get some love from ZH you may not have seen.
Rates Must Eclipse 4.0% if Fed is Serious About Killing Inflation- not ours, but excellent explanation.
Also: VBL will be sitting in with Jordan from the Daily Gold show. We will let you know when that comes out.
