Phoenix Capital Research's blog

Today we’re going to explain what the “final outcome” for this process will be. The short version is what happens to a cancer patient who allows the disease to spread unchecked (death).

The S&P 500 has only been at this level or higher a handful of times in the last 100 years. All of them have coincided with major market peaks.

So not only are we dealing with an investment landscape in which virtually no working fund manager has experienced a bear market in bonds… we’ve actually got an entire generation of investment professionals who have experienced only one increase in interest rates in 14 years.

No one knows how this will play out. We all know on some level that it will not end well, but exactly how and when it will all backfire remains to be seen. We’ve already had two epic Crises in the last 15 years. By the look of things, we’re heading for a third one in the not to distant future.

If the notion that the single most powerful entity in the world economy is ignoring warnings signs everywhere and continues to operate based on debunked and delusional academic theories worries you, you’re not alone. 

So… just WHO actually has a CLUE about the true state of the banks in Europe? More importantly, who will actually bother WARNING investors about the risks therein?

Behind the veneer of “all is well” being promoted by both world Governments and the Mainstream Media, the political elite have begun implementing legislation that will permit them to freeze accounts and use your savings to prop up insolvent banks.

The Fed and its policies have warped the culture of capitalism to the point that we now exist in a Centrally-Planned nightmare in which a handful of academics influence the economy and world reserve currency with every speech and verbal statement.

One has to wonder… just how high are real costs that a food company substitutes wood pulp for meat? One also has to wonder… just how accurate is the CPI or any government inflation metric that looks primarily at nominal pricing? The simple answer to that one is “not accurate at all.”

The biggest problem with the epic Central Bank rig of the last five years is that propping up a bankrupt financial system by printing money only works for so long.

This is why the Fed’s claim that higher prices are just “noise” is so ridiculous. The Fed is either ignorant or lying. Neither of those is good. Indeed, the only support the Fed has for its claim is that bond yields remain at historic lows... which the Fed itself is causing.

The fact that the economy shrank like this, DESPITE all of the Fed’s interventions over the last five years AND the credit growth in the first quarter of 2014 is proof point blank that the Fed’s economic models are wrong.

Indeed, for Gold to even realign based on the Fed’s actions, it would need to be north of $1,900. That’s a full 35% higher than where it trades today.

Weak GDP growth with major currency devaluation? This is called stagflation. And it’s causing the Bank of Japan some doubt.

Those in charge of regulating the system will lie, cheat and steal rather than be honest to those who they are meant to protect (individual investors and the public)