The Fed Freaks Out: the Inflation Genie Is Officially Out of the Bottle

Phoenix Capital Research's picture

Something truly astonishing is happening at the Fed.

The Fed FOMC minutes for July contained an incredible admission although most missed it. During that meeting Fed officials implicitly admitted that the Fed had no clue about inflation.

This admission was largely swept under the rug. But we took note. And we started preparing accordingly. However, even we did not think the Fed would start broadcasting this admission on a near weekly basis.

Fast-forward to last week and Fed Chair Janet Yellen openly admitted that the Fed does not “fully understand” inflation. And then just this morning Yellen stated that the Fed was “wrong” employment and inflation.

Remember, this is THE FED we’re talking about: the group of individuals responsible for maintaining financial stability. And its leadership is now openly admitting that A) they’re wrong about the most important aspects of the economy and B) they don’t understand why this is!?!?

Already, “sticky inflation” or inflation for prices that are slow to change is now above the Fed’s 2% target.

And now the Cleveland Fed’s Median CPI measure has broken above 3.0%.

Put simply, the Fed has let the inflation genie out of the bottle. Yellen and her cohorts are now frantically trying to invent excuses for when inflation rips through the financial system.

This is THE trend of the next six months. If you’re not taking steps to actively profit from this, it’s time to get a move on.

We  published a Special Investment Report concerning a secret back-door play on Gold that gives you access to 25 million ounces of Gold that the market is currently valuing at just $273 per ounce.

The report is titled The Gold Mountain: How to Buy Gold at $273 Per Ounce

We extended out deadline on this report based on Janet Yellen's testimony this morning, but today is the final day this report will be available to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/goldmountain.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

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JoeTurner's picture

No worries goyim, when food costs 300% more we will simply CTRL-P more microwave pizzas !

LawsofPhysics's picture

As a farmer, my tribe and I will do just fine, but you better have something fucking real to exchange with me if you want to eat motherfucker.

Mr T's picture

First off none of these psychopaths said they were wrong. Yellen said she MAY be wrong. The FED MAY NOT understand. These are all psychopathic qualifiers. 

They are never wrong it is always somebody or something else at fault.

DemandSider's picture

There's inflation for most of the goods and services you need the most, and deflation in most of what you need the least.

LoveTruth's picture

This is a paid article. Do the opposite of what they say if you want to make money.

ElTerco's picture

Deflation is more likely than inflation.

luna_man's picture

 

GOLD @$273 per ounce, what's wrong graham, run out of money?

 

I think, you need to find an companion, you seem to be getting desperate!

wwxx's picture

Well....when ya decide to unwind the 30 Trillion or whatever of those stocks & securities they have been buying during QE, ya inflation seems like problem, but the FAKE excuses are never a problem, I know for sure the FED is intentional in their directions and they know exactly what they are doing, and if they sell all those QE purchases now at 'the high price' they will consider it a win-win.

 

wwxx

Lets Buy The Dip's picture

If fed raises banks buy tech and banks. If they do not raise ratest buy tech and banks. Here is an interesting theory why. 

See here => http://bit.ly/2hHfN90

We are in a huge boom right now, but if interest rates rise, bank profits go up, as they make more on loans. 

Fed are going to make more zombies pay out. 

Lockesmith's picture

Not when the default rate goes above 10%

Setarcos's picture

I wonder if any of these Fed hermits would ever dare to venture out into the real world?  I wonder if any would dare to simply enter "John Williams" into a search engine?  Silly questions I suppose, but how about inflation at around 14% and unemployment at around 25%?  I haven't checked lately, but these figures are about right.

SoDamnMad's picture

The Fed has changed the inflation measurement formula so many times to suit them. Now they can't find any way to change it to make them look good so they are screwed.  Main Street has been screwed for the last decade.  Banks are thinking if the Fed raises interest rates they will make more money on their loans. WHAT LOANS???  Loans to buyback stocks. When stocks will start plunging. Hah

Herdee's picture

When China gets hit with high tariffs and emerging markets dump U.S. dollar denominated debt, watch-out. The dollars will all rush back in by the trillions creating devaluation along with hyperinflation.

DemandSider's picture

It seems more likely that The PRC will just continue to quetly buy up The USA until it's really obvious to everyone which side really won The Cold War.

Eman Laer's picture

Regardless of what you think of Phoenix it's tough to argue with that logic.

lulu34's picture

Another "ad" spit out as journalism .

absente reo's picture

More bullshit from the gold permabull brigade hawking their wares.

Silver Savior's picture

Real inflation has been 10% a year for many years!

steve2241's picture

Fake news, brought to you by the TPTB.  How wonderful it would be for Wall Street and the elites to have an additional round of QE, predicated on this fakery from the statistics and economics professions.  Wunderbar!

AgLand's picture

Mother Felon robs the poor to give to the rich.

Is-Be's picture

Hurry up with the AI.

Do I have faith in the invisible idiot attached to the invisible hand (thanks Orlov)? No.

Gold is as valuable as we think it is. Cowry shells are as valuable as we think they are. 

Its all about convincing your fellow man to hand over his real wealth for whatever shiny object you have in your hand.

Real wealth. Like food, shelter, dirt, sunshine, rain,the joy of your grandchildren.

Where is heaven? It is all around you. Better grab some while you still breath.

 

Jtrillian's picture

They don't give a rip about inflation.  Central banks will soon abandon inflation mandates.  All they care about is keeping the status quo going.  They just keep kicking that can until all hell breaks loose. 

JailBanksters's picture

I think they are just so fixated on trying to make the Dollar worth more each succeeding month,

and instead it's the cost of good and services rising that is making the Dollar worth less.

Which is completely opposite to what they were expecting.

But this is all the FED does, and have been doing it for more 100 years, how could they not know.

 

GreatUncle's picture

The cost of goods and services rise when there is not enough if you are a seller.

Always one mug out their to keep you going for another day and stagflation.

Overall though the trap is the number of ordinary people able to keep it all going for another day is shrinking.

Hence prices rise on need but nobody can afford it making it no longer profitable if not enough money changes hands.

The FED formed because of industrialisation the preceding decades knowning exactly what was coming for employment and people.

A select few were going to position themselves so they would have plenty forever.

Seems to be about right.

The Alarmist's picture

Hey Janet ... I got your stinking inflation right here!

TheJohnnieWalker_Put's picture

Silver cash market off $0.42 in one day and not a peep on Zerohedge?!

Holy crap. Looks like "they" are not alone in not knowing what's going on. Guess inflation in the new bad news for PM's.

CRM114's picture

They do know why they are wrong, but they cannot admit it.

GreatUncle's picture

They ar not wrong it is we are not looking from their perspective of being one of the 0.01% at which point you would say they are doing fantastic.