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Is Bernanke’s Worst Nightmare Just Around the Corner?


by Phoenix Capital Research

 

First off I want to say that all of us here at Phoenix Capital Research are sending our prayers to the victims of the Boston Terror Attacks. We sincerely hope none of you, our readers, or your loved ones were injured or harmed by these events.

The markets today are snapping back from yesterday’s sharp drop. However, in the bigger picture we believe that Ben Bernanke must be terrified.

The Fed and other Central banks of the world have done their darnedest to inflate away the debts of the developed world. These folks wantedmore than anything to create inflation… because it meant it was easier to service their debt loads provided interest rates stayed low.

It is beginning to look like they failed. The Fed has announced QE 3 and QE 4, the Bank of Japan just announced a $1.2 trillion stimulus, the European Central Bank has promised unlimited bond buying… and yet deflation looks to be rearing its head again.

Copper has taken out its “recovery’ trendline.

Oil is breaking down:

So is Gold:

These are all signs of rising deflation. If deflation IS back then Bernanke’s efforts to create inflation will have failed. IF this is the case, the Fed is literally out of bullets.

Investors take note, the global economy appears to be contracting again. China’s recent GDP miss is the just the latest in a series of economic surprises to the downside.

And stocks are always the last asset class to realize this.

 

 

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

 

Best Regards,

Graham Summers

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  • anne belloni

    isn’t deflation good for the average consumer?

    • http://www.facebook.com/prometey.bezkrilov Prometey Bezkrilov

      Yes and no. Yes, if we had no corruption and no monopolies and no
      private central banks it would be a good thing where savers would be rewarded
      and gamblers would be punished. If your income fell as a result of deflation so
      would house prices and food. But because we have a corrupt system where banks are holding on to failed mortgages and do not write them down to market price (not to reports losses) while getting bail-outs out of collaborating governments with your pension funds and bank accounts it becomes an issue. Secondly, you have to understand how the game is played. As you hear and read “economic” predictions you hear a bunch of people promising hyperinflation, the other group is promising deflation. It is all very simple. Central banks give out
      tonnes of cash to everyone. This is a period of boom and bubbles. Why? Very
      simple. You give someone a kilogram of paper and if he/she fails to pay back
      you get a tangible asset in exchange. So the banksters hook everyone on loans.
      Then they turn the faucet off and the music stops playing, in other wards they
      organize the condition when borrowers cannot pay. The banks stop lending
      currency. Since there is no savings in this type conditions due too many
      factors (income is reduced by slow inflation, cash is locked up in pension
      funds, etc.), the price of goods and assets collapses. At this stage the
      banksters pretend that they pump money in the economy to “stop deflation”, but
      in facts they get the money and pour it into a commodity market (mostly food commodities) to further reduce your disposable income, because now your food is rising in price but with a 9-mo delay. The reason they do it is to buy valuable assets for pennies on the dollar to concentrate wealth and power. The next step is inflation-to wipe out those who managed in these conditions to save something.
      But, they would never go for hyperinflation unless they need a total chaos. Otherwise they will slowly suffocate you with shrinking disposable income. Why? This is all part of UN Agenda 21-sustainable development. 5% of Earth population (US population) needs to consume the corresponding amount of resources, not 50-60% of resources. I hope it answers your question.