The Inflationary Everything Bubble Is Now Entering Its Final And WORST Stage

The comments below are an edited and abridged synopsis of an article by Phoenix Capital Management

The Fed and other central banks have finally succeeded in unleashing inflation. They are downplaying it by saying that inflation is transitory, but do you believe a Fed official who is paid to say things that minimize systemic risks?

The Inflationary Everything Bubble Is Now Entering Its Final And WORST Stage | BullionBuzz | Nick's Top Six

Year to date, the price of copper, gasoline, corn and soybeans are all up double digits. The last two items are the most concerning, as the Fed’s own research shows that food inflation is the single best predictor of future inflation.

And unfortunately, things are about to get worse.

Inflation arrives in stages. It’s not as though it enters the financial system and suddenly the cost of everything rises. Instead, inflation slowly works its way into the financial system in phases.

The first stage occurs in the manufacturing/production sector of the economy, when producers start paying more for the raw goods and commodities they use to manufacture/produce finished goods.

One or two months of higher commodities or raw goods is not an issue, but once you see 6-8 months of steadily rising prices, it’s significant. At that point, manufacturers/producers have to start raising the prices of finished goods or they face shrinking profit margins

Then you move into the second stage of inflation: When the prices of everyday things begin to increase. We are now entering that phase, and the author gives examples.

Meanwhile, the Fed has stated that it has no interest in raising rates or tapering QE for another two years, which means that inflation is going to rage, and the damage done will be measured in trillions of dollars.

Those who are properly prepared, however, will make literal fortunes.

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