A Tectonic Shift is Underway in the Financial System
Things are changing rapidly now.
The simple fact is that the developed world is completely saturated in debt. In the U.S. alone there is $3.4 trillion in municipal debt, $14 trillion in corporate debt, $20 trillion in household debt, and $37 trillion in Federal debt outstanding.
We are focusing on the U.S. here, but this is a global issue. Japan, the UK and the EU all sport Debt to GDP ratios ~100% or more. All told there is over $300 trillion in debt sloshing around the global financial system.
There are three ways to deal with debt:
- Pay it off via growth.
- Inflate is away.
History has been clear: central banks/ policymakers ALWAYS try to inflate it away first. When this fails, the default comes.
Why Stocks Are Melting Up… and the Best Ones to Own!
Globally, the bond market is beginning to crack. And central banks will soon be forced to print money and start buying debt (Quantitative Easing or QE … or risk a debt crisis.
The yield on the UK’s 10-year Government Bond is at levels not seen since 2008. A break above 4.75% opens the door to a yield spike to new highs, which with a debt to GDP ratio of 96% is a recipe for a debt crisis.
If the U.S. Dollar Breaks This Line, It Will Unleash an Inflationary Storm
The U.S Dollar is now in VERY serious trouble.
The $USD is now literally on the edge of a cliff. If it breaks down here, it will take out a 15-year bull market and signal that a new secular bear market is underway for the $USD.
This would unleash an inflationary storm. There are already numerous signals that inflation is turning back up in the financial system. If the $USD collapses from here, it will create a truly disastrous situation.
Don’t Buy AI-Stocks… Do This Instead!
The financial system is giving investors a major “tell” …but few are paying attention to it.
While Wall Street and the financial media obsess over tech and artificial intelligence stocks, hard assets are absolutely CRUSHING these stocks.
Nvidia (NVDA) is THE single most important AI play trading on the market. Based on the AI hype, you’d think this stock was THE top performing asset out there. But you’d be wrong. An investor who bought the gold miner ETF (GDX) at the start of the year has absolutely CRUSHED the performance of NVDA.
On that note, we just published a Special Investment Report concerning FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead. They’re already up 6%, 8%, 23%, 28% and even 30%. And that’s just in the last few weeks!
The report is titled Survive the Inflationary Storm. And it explains my top five gold mining plays, including their names, their symbols, and the resources they own.
Normally I’d charge $499 for this report as a standalone item, but we are making just 100 copies available to the public.
To grab one of the last remaining copies…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research