Jerome Powell has "Cut a Deal" — and You’re Going to Pay

The Biden Administration says “Full speed ahead on the inflation express” July 28, 2021 UNSUBSCRIBE | ARCHIVES Jerome Powell has “Cut a Deal” — and You’re Going to Pay *** AOC RIGHT for once? *** Love or hate her… looks like AOC is FINALLY trying to do right by America. She just threw her internet fame behind a biotech marvel… One showing promise in the fight against diseases like Alzheimer’s and Addiction. Is she right? Is she a nincompoop? Click to learn more about the biotech stocks AOC wants to get your tax dollars. Dear Money & Crisis Reader, Over the last two days, we’ve outlined how the bond market is predicting a surge in inflation. By quick way of review: Real rates, as measured by the difference between yields on Treasury Inflation-Protected Securities (TIPS) and regular Treasuries have been surging higher (see the chart below). This means that TIPS are dramatically outperforming Treasuries right now. Since TIPS trade based on inflation expectations, this suggests the bond market is predicting much higher inflation. What would cause this? Another round of massive money printing. We’ve already noted that the Biden administration hopes to sign a $2–$4 trillion infrastructure program into law in the next few weeks. And after that there is talk of a $1.7 trillion climate change program. Today, I’d like to tackle the Fed’s role in all of this. The Man Behind this Roaring Inflation The Fed is currently engaged in a $120 billion per month Quantitative Easing (QE) program. This comes to over $1.4 trillion of newly “printed” money per year. Recently the Fed has been hinting that it intends to taper this program, and possibly start raising rates sometime in late 2022/early 2023. But by the look of things, that will no longer be the case. Why? External Advertisement Top Tech Firm Prepares to Launch New U.S. Currency In a surprising twist, one of America’s top tech firms is set to issue its own version of the U.S. dollar and kick off a new boom in privately issued money. Click here for the surprising story. Because the Biden administration recently leaked that it intends to give Jerome Powell a second term as Fed Chairman starting in 2022. The story was leaked via Bloomberg, which has a close relationship with the Biden administration. And it suggests that Jerome Powell has “cut a deal” with Joe Biden to stay on as Fed Chair. After all, the only way that Joe Biden would give Jerome Powell a second term would be if the latter “got onboard” with Biden’s agenda. That agenda? Keep the economy as strong as possible going into the 2022 midterms. This means NO tapering… NO rate hikes and… NO tightening of monetary conditions for the foreseeable future. Sure, the Fed might jawbone things or stage verbal interventions here and there to provide political cover, but there is no way on earth Jerome Powell can tighten monetary conditions in the near future if he wants to stay on as Fed Chair. Which means… Inflation is going to ROAR in the coming months. Again… What Can You Do? Does this mean a bottom in gold is finally in? That precious metals will finally take off in response to the massive inflation the market says is on the way? Like I’ve said repeatedly in the past, I don’t know. I’m not psychic. I don’t have a crystal ball. All you can do is watch the signs and prepare accordingly. But right now, all signs — specifically the divergence between real rates and gold — are pointing to higher precious metals prices. And there’s a simple and safe way to add bullion to your portfolio while you’re waiting for the rally to take off — by dollar cost averaging. Accumulating an asset at different prices around support levels means you don’t have to worry about buying “the low.” Our partners at Hard Assets Alliance have a unique program that can do that for you on autopilot. It’s called Metalstream and will let you add precious metals to your account each month for as little as $25. So you never worry about buying “the low.” Full disclosure, we are partners in the company and we do receive compensation as a result. But their service is top notch (that’s why we invested in them!) and this program is really unique. It’s well worth a look if you’re interested in adding gold or silver bullion to your portfolio. You can get more information on Metalstream here… Best Regards, Graham Summers Editor, Money & Crisis Will Apple, LG, Samsung… Recall their 5G phones? Many people with 5G phones are facing the harsh truth - their phones aren’t receiving 5G signals consistently… and keep slipping back to 4G. Even some of the latest and greatest smart phones are not immune to this 5G flaw. The good news is there is a breakthrough new technology that will work with 5G phones, 4G phones, and even outdated 3G phones. And it has advantages that 5G can never have. To know more about what could arguably be the future of smart phones and internet, Click Here. To end your Money & Crisis e-mail subscription and associated external offers sent from Money & Crisis, feel free to click here. If you are having trouble receiving your Money & Crisis subscription, you can ensure its arrival in your mailbox by whitelisting Money & Crisis. Money & Crisis is committed to protecting and respecting your privacy. Please read our Privacy Statement. For any further comments or concerns please email us at MoneyAndCrisis@threefounderspublishing.com. Nothing in this e-mail should be considered personalized financial advice. 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