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By Gregory Mannarino, TradersChoice.net
The secret is out!
Not only are we experiencing deliberately created inflation on a massive scale courtesy of the Federal Reserve, but EVERY SINGLE forward projecting inflation indicator is flashing red.
Inflation is rising at its fastest pace ON RECORD!
Yet, the Federal Reserve continues to run its inflation-creation machine at full speed. Understand, the Federal Reserve IS DELIBERATELY creating inflation using a two-door mechanism. Through one door, the Fed is issuing debt in the form of massive money creation, and, through another door, they are buying debt in the form of bonds. This two-door mechanism is massively inflationary. Moreover, it creates artificial demand; pushes investment capital into the stock and real estate markets, therefore inflating massive bubbles; and it creates malinvestment. On the upswing, it also creates opportunities for people who understand the situation to capitalize on it.
If we understand that the end game for central banks, none more so than the Federal Reserve, is to vastly inflate, then we take the opposite side of the trade: we own and hold NON-DEBT instruments such as physical gold and silver. Also, in my professional opinion, we own and hold cryptocurrencies… taking advantage of their current fall in price.
Several weeks ago, in one of my articles for the Trends Journal, I wrote that we would see a particular phenomenon occur: the mainstream media would begin to blame the rising cost of energy and supply chain disruptions on the current inflation situation. Well, that phenomenon has certainly begun. Moreover, that narrative MUST be maintained.
It cannot be allowed to be widely known that it is the Federal Reserve, by design, which is deliberately creating inflationary pressures. Therefore, the MSM will deflect from pointing to the Fed’s monetary policy as the source of inflation. The MSM will attempt to hide the real source of inflation from the general public by saying, “It’s the rising cost of energy and supply chain disruptions that are responsible.”
Even the Federal Reserve itself has taken up a specific narrative on the rising inflation trend, saying, “This inflation is transitory” or “This inflation is temporary.” What else would we expect them to say?
The fact of the matter is this: We have not even begun to see the effects of the Federal Reserve’s inflation creation machine/mechanism. The Federal Reserve is marching us directly into a currency crisis, deliberately, so they can issue a new method of control: a 100-percent digital/fiat dollar system.
Problem, Reaction, Solution
It’s always the same. For any major policy change to be adopted, it must follow a simple and highly effective process. Three steps. Number one, allow a problem to manifest itself. Number two, wait for the public outcry. Number three, offer their pre-determined solution.
Expect to see inflationary pressures continue to build, causing the dollar to bleed off purchasing power at a faster and faster pace. Expect the public outcry to get louder as well. Also expect the stock market to continue its march higher, as it will now take more weaker dollars to buy shares of stock.
Gold & Silver
In the last month, gold has gained 6 percent and silver has increased 8 percent in value. The gains should continue as the Fed continues to melt the dollar in its current form.
Cryptocurrencies
Expect the cries against cryptocurrencies to get louder, as the Fed readies its own digital dollar. I expect to hear major banks warn against crypto, politicians, etc. But, to me, until cryptocurrencies are heavily regulated, I like the space and will continue to add to my current positions.