Four Charts For the "There is No Inflation" Crowd

I keep reading articles claiming that inflation is nowhere to be found.

If that is true, explain the following four charts.

Copper has broken out of a 10-year downtrend.

Copper

This chart suggests that Copper will be retesting its 2011 highs.

Another inflationary industrial metal (steel) is posting a similar pattern.

Steel

There is literally NOTHING bearish in that chart. The bear market in steel from 2010 onwards is over.

Coal, another inflationary asset, has broken out of a massive falling wedge pattern. It is now about to smash through critical resistance.

Coal

We see a similar pattern in Uranium (another inflation play).

Uranium

Just one of the above charts would be a big wake up call…but taken together, they are SCREAMING “INFLATION!!!!!!”

As this is a MAJOR problem for the Bond Bubble.

As I explain in my bestselling book The Everything Bubble: the Endgame For Central Bank Policy, US sovereign bonds (also called Treasuries) trade based on inflation expectations.

Put simply, when inflation spikes higher, so do Treasury bond yields.

When bond yields rise, bond prices fall.

When bond prices fall, the Bond Bubble bursts.

When the Bond Bubble bursts, the EVERYTHING bubble follows.

What's coming 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:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Comments

Arnold Sat, 01/06/2018 - 08:59 Permalink

Let's look at Oil generally and Nickel, used nearly in all steel.

Yeah some up tics.
http://www.macrotrends.net/2516/wti-crude-oil-prices-10-year-daily-chart

Yeah, some uptick
http://www.infomine.com/investment/metal-prices/nickel/

Graham, you might have a valid point, if it continues.

But aside from mega buildings and pipelines, where is the demand?

https://tradingeconomics.com/commodity/steel

https://www.eia.gov/outlooks/steo/report/electricity.php

It just may be some old fashioned manipulation to heart thump the dead commodity markets.

Gatto Arnold Sat, 01/06/2018 - 16:04 Permalink

Where's the demand for AMZN?  Demand is really not necessary, when people see something going up, they will jump aboard that train, the catch is that few are invested in commodities right now, so there's lots of money that will be shifting as soon as the first hiccup in the general markets happen, which hopefully, is soon!

In reply to by Arnold

Catullus Sat, 01/06/2018 - 11:49 Permalink

Looks like it's screaming all the industrials are trading less than 10% or more below 5 year ago levels. More than likely from overproduction

Goldennutz Sat, 01/06/2018 - 11:54 Permalink

"Jump to this post's comments section"

 

At the beginning of the comments?

 

Duhhhhhh...

 

Still no way to reverse comments to see newer ones first?

Can't go back to find your post to see if anyone commented on it?

 

Geez.

Arnold Goldennutz Sat, 01/06/2018 - 13:02 Permalink

My Linux platform still has some glitches, but none that you mention.
The Goggle Android, using Chrome lacks a couple of familiar features.
The android is very clunky compared to the community I Pad I get to use.
How you guys use tablets that you cannot bend to your will is beyond me, so far.
Just sayin'.

In reply to by Goldennutz

Dragon HAwk Sat, 01/06/2018 - 13:12 Permalink

Inflation? you mean like health care inflation,  Car repair inflation? or grocery store Inflation? shit most products don't even have any Metal in them any more.

DuneCreature Sat, 01/06/2018 - 13:26 Permalink

Buckle up for blockchain, buckle up.

Buckle up for blockchain, buckle up.

Buckle up for blockchain, buckle up.

Buckle up kids, we're going for a ride!

 

~~~~((((  Blockhead Chained To Your Device  ))))~~~~

Killary might be wearing 'The Boot' but you may be wearing AI AL's ball and chain.

To the Nerds among us, Worry E-Warts and anyone crazy like me and pissed about being dragged over the waterfall by the strong current of the terminally stupid hell bent on giving up all their freedom of choice and economic autonomy here is our bio watchdog - Jules - sounding the alarm:

Some Interesting Blockchain Background Information =

http://www.ucy.tv/streams/64k/20180103-10-64k.mp3

Part 2 - Jules plays a Jim Duke interview

(A little heavy on the Magic G-Bus but many good points herein) =

http://www.ucy.tv/streams/64k/20180104-10-64k.mp3

I'm not saying to not speculate on crypto currencies but I would be very cautious about going 'all in'. .... I would keep my options open and have a solid 'fall back' position well stocked with food. water. ammo and PMs.

AI AL has quantum computing power and we peons don't.

If you think fiat money fucked up commerce and market place price discovery wait until you see what AI AL does to blockchain values. .. I see technocracy asset stripping in our future myself.

Live Hard, Beware AI AL Bearing Gifts Too Good To Turn Down, It Is Probably An Old Tar Pit Trap, Die Free

~ DC v8.4

TeethVillage88s DuneCreature Sat, 01/06/2018 - 16:27 Permalink

Crazy Article.

I don't really know what is AAll. I guess I should read more.

- Your points are not unappreciated, I guess I am out of step with technology and Block Chain and Crypto Currencies... which by the way I hate anything with Crypto in the front since I remember classified info going out on Crypto

The world goes to hell, but it is status quo and no one gives a damn. We can imagine popular vote like for William Jennings Bryan for US President... but it is a pipe dream, there is no reforms except those that put advantages and subsidies into the hands of the already advantaged.

- Independence movement, an absurdity
- Reform, an absurdity
- Revolution, an absurdity
- Equality, Fraternity, Brotherhood, Liberty, an absurdity
- Freedom from Organized Rape, an absurdity

In reply to by DuneCreature

besnook Sat, 01/06/2018 - 14:50 Permalink

an uptick in copper means things are good. it doesn't necessarily mean inflation will explode. it does mean there should be some cost push inflation. the most promising thing about these charts is the possibility they may be a real reflection of economic activity and not a play on the declining value of the dollar.