Inflation: What's Happening Now, and How To Protect Yourself

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In this video, I discuss the recent flattening of the US Treasury yield curve, and the mistaken belief that inflation in the US will be "transitory." The only path forward is for the US to inflate its way out of its debt, while not scaring off bondholders.

There are only 2 possible paths once you hit 130% debt/GDP:

1) Austerity: cut Social Security spending, cut government spending= civil unrest, rioting, politicians being voted out and austerity ending

2) Inflate our way out of our debt: keep nominal GDP above Treasury yields until debt/GDP much lower; keep interest rates below inflation rate

It is clear that path #2 has been chosen. The Fed cannot raise rates or taper without blowing up the US gov, the stock market, or the real estate market. If the latter two fall, it decreases tax revenues and further widens the deficit.

The best ways to hedge years of coming inflation is Bitcoin and select commodity plays.

Not investment advice! Consult a financial advisor.

CPI inflation hits 5.4%
https://www.cnbc.com/2021/07/13/consumer-price-index-increases-5point4percent-in-june-vs-5percent-estimate.html

Inflation ex everything is still hot:
https://twitter.com/johnauthers/status/1414990117924753408

Chapwood Index is probably more accurate than CPI:
http://www.chapwoodindex.org/

US debt to GDP:
https://fred.stlouisfed.org/series/GFDEGDQ188S

Impossible to shrink the Fed's balance sheet:
https://fred.stlouisfed.org/series/WALCL

10-Year Breakeven Inflation Rate:
https://fred.stlouisfed.org/series/T10YIE

2 Year Treasury Rate:
https://ycharts.com/indicators/2_year_treasury_rate

10 Year Treasury Rate:
https://ycharts.com/indicators/10_year_treasury_rate

2s 10s spread:
https://ycharts.com/indicators/10_2_year_treasury_yield_spread

US Treasury rates:
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

US debt clock:
https://www.usdebtclock.org/

US gov spending as % of GDP:
https://fred.stlouisfed.org/series/FYONGDA188S

Powell to let inflation run hot:
https://www.cnbc.com/2020/08/27/powell-announces-new-fed-approach-to-inflation-that-could-keep-rates-lower-for-longer.html

Powell needs to pretend that inflation will be temporary:
https://bankingjournal.aba.com/2021/06/powell-recent-rise-in-inflation-is-transitory/

Bitcoin for Beginners:
https://www.youtube.com/watch?v=ZpDA682fDN0&ab_channel=TraderUniversity

Check out my Amazon best-seller, "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5

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#Inflation
#Hedge
#Fed

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Видео Inflation: What's Happening Now, and How To Protect Yourself канала Bitcoin University