Bet on the Fed choosing fatal inflation. From Matthew Piepenberg at goldswitzerland.com:
Below we look at the dark corner in which the Fed has placed themselves and investors: A one-way path toward tanking markets or crippling inflation.
Alas: Pick your poison.
For us, the antidote is as good as gold.
More Inflation Signs
Stocks continue to gyrate nervously as the Fed continues to behave like a cornered animal trying to downplay inflation risks while paradoxically supporting a mega “everything bubble” with pro-inflationary tools.
April’s “official” CPI inflation number climbed by 4.2%, the fastest climb since 2008 and 2X the Fed’s mandate.
The Fed is claiming that’s because because COVID’s 2020 deflationary trends made such relative inflationary increases “expected,” “temporary,” and soon to be “contained.”
We’ve heard those words before…
Meanwhile, US producer prices surged by 6.2% for the same month, the highest move since 2010, as core inflation, which excludes energy and food, saw its highest move since 1981.
As for energy and food, we’ve already made it painfully clear that prices on everything from ethanol to canola and corn, or from milk, chicken wings and lean pork to beef and coffee are skyrocketing by high double digits.
Thus, in case you think inflation is still up for debate, the facts once again tell us it’s already here.
And as for inflation in the risk asset markets, that’s now as obvious as any bubble narrative.