The Sudden Onset of Inflation

Isn't it interesting that, all of a sudden and after eight years of supposedly flat prices and deflation fears, all the rage is "surging inflation" and this phenomena may "force the Fed to act" to raise rates again as soon as March?

I don't know. Maybe there really is a sudden surge of price inflation? How would I know when I'm just a dope with a MacBook? However, I think it's fair to be more than a little skeptical..especially when it comes to the efficacy of government-created data. Is it possible for prices at both the wholesale and consumer level to suddenly surge to multi-year highs simply because Trump was elected? I'm having a hard time connecting the dots because that doesn't seem likely or possible. Instead, it's almost as if The Fed is dying to hike rates for their Banks and they're getting the data they want/need to justify their ends.

To that point, check this chart that I pulled from Twitter. Note that it's another one of those FRED charts from the Fed's own database. So, help me out with this...If the purchasing power of the dollar is down 30% over the past 17 years, how is it that NOW is the first time that we're actually seeing significant MoM and YoY inflation numbers??

Instead and once again, are the numbers simply being cooked/fabricated/made-up simply to fit the desired narrative? Want to run rates to historically low levels? Have the BLS (yes the same Bureau of Labor Statistics that cooks up the BLSBS each month!) print "inflation" at historically low levels, too! Need/want to hike rates for whatever reason? Have the BLS suddenly print that inflation "is surging"!

And you think that's not possible?? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH! Again, check that chart above from the Fed itself and tell me that inflation is only now beginning to pick up.

Why is the purchasing power of the dollar continually declining? Because The Fed is constantly increasing the supply of dollars in order to meet the liquidity demands of their Banks and the federal government!

Of course, many will then think of M2 "velocity" next. Granted, this chart is only updated through the end of Q4 but do you see anything here that suggests a sudden trend change? Me, neither.

So, of course what I'm suggesting here again is that it's all bullshit....just like everything else. Game the statistics into whatever you want/need them to show and then the Financial/Political/Media Complex reacts accordingly. All the while, the average person gets screwed. How?

  • The BLS deliberately understates inflation in order to constrain COLAs for retirees and Social Security recipients
  • The Fed decreases rates to zero and prints trillions of new greenback in order to save and shore up their member Banks
  • Now at the appointed hour, the Fed wants to hike rates so that their member Banks can charge more interest upon the vastly increased money supply, further strapping with higher interest costs the average individual or retiree.

Who wins? The Banks. Who gets screwed every time? The average, everyday American who is just trying to scrape by, working three jobs and desperately trying to hold it all together.

Only popular uprising or financial collapse exist as possibilities for changing this inherently corrupt and criminal system. Since popular uprising seems unlikely due to the complete lack of economic education in this country, we're left with only the option of financial collapse as a way of extricating ourselves from the serfdom of central bank control. And sadly, when it inevitably comes, global financial collapse is going to be an unmitigated disaster for nearly everyone.

But here's one more chart. Note that this covers about the same time period as the two FRED charts above. And be sure to note that, instead of declining like your purchasing power, this chart shows an increase of more than 4X over the same time period. And what is this? GOLD. Not the limitlessly-created fiat script of governments. Instead, REAL MONEY that has been recognized as such for millennia and, as always, your ONLY protection against the madness and criminality of the global bankers.



twippers's picture



forever20's picture

.Silver. my favourite position

.Long. Stack.Inflation coming. Protect your wealth.

canary's picture

I think, DOW is going to the Moon

               And after that... to the Jupiter....and out of the Milky Way.

               Happy investing.

RickshawETF's picture

Oh oh . . .

Fourth . . . ?

Charlie must be out stacking!

Stack on!

Blaggers's picture

Quandry For The Fed

Rising inflation seems to be forcing the Feds hand into raising interest rates.

Something that no one seems to  talking about is the impact of rising interest rates on sovereign debt (USA $20 000 000 000 000).

Maybe the PM's see it.

Blankone's picture

To the moon

Canary, yea I believe the Dow is going to the moon also and beyond and Im sitting here with my thumb up my ass, not in the market and on a pile of metals that arent doing anything. I dont believe things will ever change.

yukon123's picture

paas bouncing

buy the dip

abundance's picture

ot dutchsinse and the dam/earthquakes

marchas45's picture

I Had A Customer

Come in and I missed my 4th Keep Stacking

Boy I can't stand that Ms. Waters you can tell her questions where lead ins for Yellen. What a waste she is. Both of them. It's All Efen Politics Give Them All Freebie's To Do Your Wishes. Pisses Me Off

Blaggers's picture


Buying opportunity perhaps???

Northern Dynasty Minerals got hammered yesterday as well.

I'm actually looking forward to a correction in the PM's and miners.

1. It's healthy for the long term

2. I've got a list of miners I want to buy or add to

Bring it on (as long as it's not too big) is what I say.

Turd Ferguson's picture

So far, so good


CDG is nearly back to where it was when Mother began flapping her gums yesterday:

And on the bright side, price has bounced off the 100-day MA for the 4th consecutive day:


LostMind's picture

Quandry for the FED???

Rising inflation has been continual since 1913... They have handled it by printing more and lower rates. They now have to deal with all that extra US$ in the world by raising rates.

The FED will be the last lender when this goes to shit. Who else will be buying all those UST <--kind of looks dirty now doesn't it, kinda of like STD... I digressed...

Anyway, All US debt will be held by the FED and they will keep on printing until they no longer can. I mean, when you have to actually pay someone in gold or oil to print your currency because they wouldn't accept your currency what then?

I wonder if they will put Obama on our new Trillion$ bill? Wouldn't that be cool!! Obama bucks buys you a loaf of bread! I wonder what gold would be worth in US$ by then???? I'm thinking people will be digging through cow shit and straining cow piss to own some gold at that point... further digressed...

I'm thinking I have become to pessimistic. All of my friends are so happy with the DOW right now, just so happy. Their returns are screaming higher... I wonder why my portfolio of ONLY gold and silver miners is up 65% since December 28?! Something broke and we just haven't figured it out.... or have we?

Blaggers's picture


A perspective from Gains, Pains and Capital

The Markets Are Screaming "Inflation!" Are You Listening Yet?

I keep pounding the table and screaming about inflation… but people still don’t get it.

Hopefully yesterday’s inflation data was a wake up call.

For those who missed, US wholesale inflation posted its largest monthly jump in four years yesterday. Core Producer Price Index rose 0.4%; only 0.2% was expected. And Fed Chair Janet Yellen blatantly hinted at another interest rate hike in March… despite clear evidence the US economy is rolling over.

If this doesn’t SCREAM “inflation” to you, nothing will.

The fact is that the Fed realizes it has let the inflation genie out of the bottle. The inflation rate is already well above the Fed’s desired target of 2%, having moved a total of 3% higher in the last 18 months.


Gold and Silver have already "figured it out." They're up 6% and 11% thus far year to date.


Look, the potential to see triple digit gains from inflation hedges is here.

Seithen's picture


Might want to check out

I've done very well following his evolution system. Make money going up or down. Good way to play a BS market that is hyperinflatiing.

lakedweller2's picture

Metals Manipulation

They want you out of metals.  They want whatever wealth you have.  Why do banks have PM stocks on their balance sheets?  Deutche Bank, Swiss Bank and others.

Turd Ferguson's picture

Be sure to see this


"IC" = Intelligence Community

Author is former NSA.

The War on Trump is going to continue to escalate. For our purposes here, this should serve to weaken the dollar and permanently reverse the trend and gains since the election.


dale's picture

Ship of Fools

I agree. This is a blatant set up, unwelcome but not unexpected.  Trump continues to be attacked from every possible angle which confirms the ongoing war within the government. Coup, counter-coup in real time.  Maybe I should say surreal-time.  I had to laugh at Kunstler's recent turn of phrase; red team and blue team playing capture the flag on the deck of the Titanic. We've entered global cooling - too many icebergs surround this floundering ship of fools. 

Turd Ferguson's picture

The Financial/Political/Media Complex


Well this couldn't have been more timely for the purposes of this post! See how this works??

canary's picture

"Complete lack of economic education"

And why to study economics?...Just buy a computer trading algorithm, and the next day you think that you know everything.sadsad

Blaggers's picture

Quandry For The Fed

I totally agree with you LostMind (good handle by the way).

I'm thinking rising interest rates indicate game over for overleveraged sovereign, public and private debt as well as many mortgage holders (Canada especially) and maxed out credit cards.

Default or inflate it away = good for gold/silver/hard assets

billhilly's picture

Nice writing Mr. Ferguson !!!


Very fine piece put together today.  I appreciate all your insights and efforts !!!!  You bring some fresh air into a musty cabin with your sober and intelligent analysis. 

Thank you !!!!

Danforth Coxwell's picture


you have not studied economics, you are uniformed. If you have have studied economics (Keynes Model), you are misinformed.cheeky

marchas45's picture

Testing Testing

Testing! Testing! Keep Stacking

dale's picture



dale's picture

Inflation is off the charts.

Inflation is off the charts.  And the effects of inflation are certain to increase momentum this year. But the last place I look for this is in the CPI or the Core Producer Price Index; these have been skewed for years. Suggesting that the Fed is reacting to honest data somewhat misses the point of this post.

Danforth Coxwell's picture

Is there a problem...

with the Kitco feed?

lakedweller2's picture


Down. Gold up. Miners need to go positive.  Algos need to keep up.

infometron's picture

@Danforth Re: Kitco feed

Yes, they've flatlined... hopefully for good!


BillD's picture

yes on kitco feed

Mine stopped updating at 11:39 ET

edit: just started updating again... latest at 12:27

gold up 4.30

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