As I stated yesterday, the great crisis of our lifetimes… the crisis to which 2008 was just the warm-up… is here.

What is happening?

Inflation.

For decades central bankers argued that inflation was good while deflation was bad. To that end, they have printed some $20 trillion in new money and used it to prop up the financial markets.

Let’s start with the U.S. central bank, the Federal Reserve or Fed for short.

The Fed has been running Quantitative Easing (QE) programs for over 50% of the last 14 years. During this time period, the Fed printed $8 trillion, all in the name of attempting to “hit” its inflation target of 2%.

As if you can create inflation, get it to 2% and then stop on a dime!

Well, the Fed finally got its wish… and then some. Inflation has finally arrived courtesy of Fed money printing, supply chain disruption from the pandemic, and fiscal insanity from Uncle Sam.

The only problem is that inflation didn’t stop at 2%. It roared higher to 8%.

And it blew up the debt markets in the process.

The yield on the all-important 10-year U.S. Treasury has broken out of its long-term downtrend for the second time in 40 years. The first time it broke this downtrend in 2018… but at that time the Fed could reverse its policies to stop a crisis brewing.

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This time the Fed is trapped. It cannot stop monetary tightening without making inflation worse. And so, rates will continue to march higher, putting funding pressure on the U.S.

Remember, the U.S. needs to issue $1 trillion or more in new debt every year… let alone all the debt that it must roll over into higher rates.

This is going to trigger a major currency crisis soon. It already happening in the U.K… next is Europe, then Japan, and finally the U.S.

I’m talking about a situation that looks like this:

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On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike as the Everything Bubble bursts.

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