The Fed is Arranging Deck Chairs on the Titanic (the Iceberg Comes in 2018).

The Fed concludes its final FOMC meeting of the year today.

The entire financial world expects the Fed to raise rates a final time. This will mark the fifth rate hike since December 2015, and the fourth of the last 12 months.

Throughout this time period, the Fed has routinely stated that it is confused as to why inflation is “too low.”

Inflation is not too low. The method the Fed uses to measure inflation is intentionally incorrect. As a result, the official inflation numbers reflect whatever the Fed wants, as opposed to reality.

Alan Greenspan devised this entire gimmick back in the 1990s. At that point, the amount of debt in the US financial had already become a systemic issue.

So Greenspan opted to “paper over” this fact via inflation… hoping that by aggressively devaluing the US Dollar he could keep this game going.

The only problem as far as the Fed was concerned was that the inflation numbers would reveal the Fed’s strategy. So Greenspan started tinkering with how the Fed measured inflation, removing various components (food and energy) and tweaking things so the Fed would no longer measure the cost of maintaining the same quality of life.

Greenspan hoped understating inflation publicly he would give him the cover he needed to pursue an aggressive devaluation of the US Dollar. The flip side of this was that the Fed would begin intentionally creating asset bubbles by maintaining loose monetary policy ad infinitum.

The late ‘90s was the Tech Bubble.

When that burst in the mid-‘00s, the Fed created a bubble in housing.

When that burst in ’08 the Fed created a bubble in US sovereign bonds or Treasuries.

And because these bonds are the bedrock of the US financial system, the “risk-free rate” of return against which ALL risk assets are valued, when the Fed did this it created a bubble in EVERYTHING.

That bubble is now beginning to burst. And ironically it is inflation (which the Fed claims is too low) that will do it.

It will take time for this to unfold, but as I recently told clients, we're currently in "late 2007" for the coming crisis.

The time to prepare for this is NOW before the carnage hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s to come when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research


LawsofPhysics Wed, 12/13/2017 - 13:39 Permalink

Yes. Of course, the truth is that THEY HAVE BEEN SINCE 1913!!!In fact, ALL CENTRAL BANKS ARE!!!!Fuck off Graham, where are you going to run to motherfucker?

CRM114 Don Sunset Wed, 12/13/2017 - 18:30 Permalink

Cheap credit, never-to-be-repaid credit (like student loans), and rolling-over credit (like auto leasing & loans) is distorting the picture massively.The underlying inflation problem will only reveal itself when the credit runs out, and when will that be?In essence, a universal basic income is another attempt to extend the credit yet further.

In reply to by Don Sunset

Endgame Napoleon CRM114 Wed, 12/13/2017 - 21:51 Permalink

What about the pay-per-child socialism for some that increases with each birth:

free food

free housing

free electricity

free monthly cash

child tax credit of up to $6,444


Where is the social pressure to marry and have the number you can afford?

It is a parenting ponzi, where the pay-per-child freebies never go down until the kids turn 18. Then those moms are like everyone else, relying on earned-only income from part-time, low-wage, high-turnover and temp gigs to cover all of the above expenses.

In reply to by CRM114

HoPewGassed Wed, 12/13/2017 - 14:46 Permalink

I was so shocked to see "Phoenix Capital..." suggest that the economic future was looking dark, I just had to come here and see what he had to say. I mean, it is even more surprising than when GoldCore suggests that we buy gold.  Mystifying! Bwaaaaahahahahahaha!  

AyatollahOfRoc… Wed, 12/13/2017 - 15:41 Permalink

I'm starting to think that inflation will just become so bad that none of the bubbles in this "Bubble of Everything" economy will actually pop.  Nominal DOW, S&P, housing index, etc. wll just stabilize and the inflation will work its magic.  I'm tired of spending $200 every time I go to Costco, or spending several hundred dollars each to register my vehicles, of the >$10K in property taxes on my house.  Yet Melissa on Fast Money cheerily proclaims "Another record close for the Dow" and "Why isn't there any inflation???", every day, in same breathe.  It's lunacy.

JailBanksters Wed, 12/13/2017 - 17:44 Permalink

Wasn't the iceberg coming in 2017, and before that it was2016, 2015, 2014, 2013, 2012, 2011, 2010And all they do is Tweak the rate up or down a smidge, create some more Counterfeit Money and buy more Corporate Bonds so the companies can use less staff, decrease sales and increase Profits which ultimately increases stock prices. 

Let it Go Wed, 12/13/2017 - 18:26 Permalink

Both Wall Street bankers and the government, including the Federal Reserve, hold great sway over the economy. This is true with bankers and central banks across the world. When forced to ask which is the worse of these two evils the answer is very troubling. Government wins hand down. We elect politicians to lead, protect and guide us, we do not elect or appoint bankers.Years ago President Eisenhower warned the American people about the Industrial Military complex, but nobody warned us an even more evil alliance that of the "Financial-Political Complex." The article below explores this beast and how it came to be.  http://Lessor Of Two Evils, Wall Street Bankers Or Goverment? html

bshirley1968 Wed, 12/13/2017 - 20:42 Permalink

Graham takes a lot of heat for his consistently doom and gloom reports.The problem is his data is spot on correct, and his conclusions are logical, rational, and correct based on the data.......and we all know it.It is not Graham's fault that TPTB keep shamelessly finding a way to tweak, print, adjust, and lie about the reality Graham describes.  It reminds me of a quote, "You can ignore reality, but you cannot long ignore the consequences of reality.The consequences are about to arrive.  They have come all throughout history, they have never failed to come, and we have seen them come to others in our lifetime. The next time they arrive here, the consequences will bring adjustment to our way of life that will probably never go away.You should thank Graham for his work, diligence,  and perseverance.   He has probably opened the eyes of many people that until recently were asleep at the wheel.

Sweet Cheeks Endgame Napoleon Wed, 12/13/2017 - 22:09 Permalink

Not enough money to prepare is absolutely correct. 50 year old couples making $150,000 a year can’t afford minor car repairs or just replacing one tire with a blowout. They got this way buying stuff they don’t need with money they don’t have. It is insane.

The tragedy is that even after facing the consequences of poor choices, they still don’t have a plan to bootstrap themselves out of debt slavery.

In reply to by Endgame Napoleon

SixIsNinE Endgame Napoleon Thu, 12/14/2017 - 00:07 Permalink

and even if they DID have money to prepare, and did prepare - when .goobwants your neighborhood, they WILL take it -see AGENDA 21 in action :  now if you want to really Red Pill for today, check out the ongoing evidence of intentional california fires :   Debora Tavares, of, even put out warnings 2.5 years ago, you can get the vid from those two links above ; this is agenda21 in action and using the directed energy lasers.   there are thousands of people who's homes are completely gone and have been forced into NOT rebuilding and forfeiting rights of homeowner - don't believe it?  It is PG&E, CPUC, media is owned, already putting out the narrative that the neighborhoods were not built well, too many cul-de-sacs, have to rebuild with high-density housing and "tiny" homes. the Bel-Air H-weird fires are very interesting.     this guy is good @  and he made a backup aplaintruth also for youtube censoring

In reply to by Endgame Napoleon

I am Groot Thu, 12/14/2017 - 00:18 Permalink

There are waaaay more sub prime loans than in 2008. The entire world is hanging by a thread financially. It's just gonna take the right Jenga Piece to be pulled out to bring it all down. We're all in First class seats sipping champagne and headed straight for the Towers.