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By Gregory Mannarino, TradersChoice.net
Since I began writing for the Trends Journal in March 2020, there has been a common theme: The Stock Market Will Continue to Go Higher.
To say the least, my calls have been correct. Moreover, I have also explained that crude oil, which is the LIFEBLOOD of the military-industrial complex, would also continue to be propped up. Last week, crude hit a multi-year high, and I believe it will go much higher.
In just the last five weeks, we have seen gold gain 6 percent and silver 8 percent; trends that in a real market should continue.
Cryptocurrencies have suffered losses as of late. The crypto space has fallen under pressure recently after several lunatic tweets from none other than Mr. “$420” Elon Musk, as well as regulation in China. Currently, the crypto space is consolidating, and I forecast they will again move higher.
Inflation today is surging, rising at the fastest pace on record! Meanwhile, several members of Congress are calling on the Federal Reserve to issue a digital dollar. They are selling the digital-dollar narrative to the American People saying, “We Need A Digital Dollar To Compete With China” – whatever that even means.
Yet, NO MEMBER of Congress is asking the Fed why they continue to issue debt through one door and then buy debt through a second door… a massively inflationary mechanism.
Moving on. Housing and real estate prices are also rising at their fastest pace on record as the Fed continues to buy $40 billion worth of mortgage-backed securities EVERY SINGLE MONTH, thereby creating artificial demand.
Today, the stock market stands on the precipice of new record highs, even though every piece of economic news continues to be negative. Just last week, the highly-anticipated jobs number missed the mark by 20 percent, catching economists by surprise, as an exceptionally good number was anticipated. This latest piece of bad economic news on the jobs front, along with rising inflation, exploding debt, and skyrocketing deficits, was enough to spark a rally in the stock market.
If the negative economic news keeps coming, and it will, you can expect the stock market to continue to go higher.
The market believes, rightly so, that if the bad economic news keeps coming, the Federal Reserve will continue to keep the easy money flowing… and the market is right.
There is no end in sight to this. The mechanism of suppressed rates is robbing savers blind, to the tune of trillions of dollars in realized wealth. This mechanism, by design, creates an environment of risk, pushing the stock market higher. It is also responsible for the inflationary pressures we are now seeing.
The Blame Game
As I forecast, the mainstream media and politicians are pointing to rising energy prices and supply chain disruptions as the cause of inflation, which is a deliberate distraction mechanism.
It is the action of the Federal Reserve which is responsible for rising inflation and a rising stock market. Period.
The narrative of a booming economy must be maintained by the mainstream media and demented politicians despite round after round of continually terrible economic news.
All of this will continue until it does not, and our job is simple: Stay on the right side of it. How to do this? As I have suggested for years, and I continue to suggest: by investing in gold, silver, and cryptos.