Warning: Another Inflationary Storm is Coming
The foundation for the next round of inflation is being laid as I write this.
The Trump administration has abandoned all pretense of austerity. In broad strokes:
- DOGE has been rendered irrelevant, as the Big Beautiful Bill negates all of the former’s cuts by a magnitude of 33 to 1 ($33 in spending for every $1 in cuts).
- The Trump administration, despite bringing in ~$100 billion in additional revenues from tariffs, is in fact outspending the Biden administration. July federal deficit was in fact 10% greater than that of July 2024, DESPITE the U.S. bringing in $28 billion in tariff revenues that month.
The markets are fully aware of what’s coming. For all the talk of inflation disappearing from the official data, gold is refusing to break down in any meaningful way. The precious metal is in fact consolidating near its all-time highs. This kind of price action is extremely bullish and suggests a new, major leg up is coming shortly.
Please consider that this is a GLOBAL phenomenon as the U.S. is not the only nation running massive deficits/ overspending. Gold is doing the same thing when priced in Euros as well as Yen.
Put simply, the markets are SCREAMING that another round of inflation is coming, regardless of what the official data claims. At the end of the day, inflation is ALWAYS a product of government spending, and the only country that has even flirted with austerity was the U.S… and that lasted for all of just two months before the Trump administration gave up completely.
Throw in the fact that globally, central banks are now easing monetary conditions... with the Fed expected to cut rates in September... despite inflation turning back up again... and you've got a recipe for an inflationary storm.
The time to prepare for this is NOW before it hits.
We detail three unique investments that will EXPLODE higher during the next wave of inflation in a Special Investment Report titled How to Profit a Inflation.
Normally this report is only available to our paying clients, but in light of what’s happening in the markets today, we are making just 99 copies available to the general public.
To pick up one of the remaining copies…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research