Hey There Income Hunter,

 

Yesterday’s CPI report did not give Biden what he was hoping for …

 

The administration needs the deceleration in inflation to pick up speed.

 

Check out the chart below showing Biden’s approval rating in relation to the CPI …

 

 

With China's reopening building momentum and increased competition for the US dollar’s use in global trading, the pressure is building on the administration …

 

What will Biden do?

 

Hatch a plan Biden’s designed to set him up for a run at a second term, that’s what.

 

Biden Pulls a Dove Out of the Fed

Yesterday, Nick Timiraos, Fed whisperer and Wall Street Journal reporter, published an article revealing that Lael Brainard, vice chair at the Fed, is set to lead the White House National Economic Council.

 

In this role, Brainard will serve as Biden’s economic-policy coordinator. Not the easiest of times to step into this gig, with the US suffering a triple-whammy of high inflation, climbing interest rates and slowing growth.

 

I’m sure Bidne will be leaning on Brainard to come up with ideas on how to handle the inflation that just won’t go away …

If You Can’t Beat It … Join It 

Brainard was the most dovish member of the Fed and recently has been laying out the case in public to be less aggressive raising rates. 

 

She is also a proponent of digital dollars and monetization of the debt, which is a version of Modern Monetary Theory (MMT) …

 

I brought out these concepts a year ago and said they were an inevitable part of the government's plan due to the enormous debt it has accumulated ($32 trillion).

 

So what is the ultimate plan that Biden can be convinced of that  will win him the second term?

 

Solve the inflation problem with more inflation!

 

Brainard will be able to work with Janet Yellen at the Treasury to deploy many of the policies Japan has implemented the past couple of decades …

 

Monetize debt and deploy Yield Curve Control (YCC) to inflate the debt away.

 

It’s pretty simple, really.

 

The Fed goes back to quantitative easing (QE). They indirectly buy the Treasury auctions plus buy up excess bonds to keep interest rates low, around 2.5%.

 

Then the central bank lets inflation rise to its natural level, say, an average of 8% annually … and hold the 5.5% difference in place for 10-years.

 

In 10-years, the $32 trillion drops to $18 trillion … and along the way the US would have funds available for rebuilding our manufacturing base.

 

At this point in the US long-term debt cycle, inflation is the solution not the problem.

 

Brainard knows this and that is why Biden has selected her for this role …

 

What’s the Trade?

Build a Fed Pivot portfolio that will crush it in the months ahead as the market narrative shifts to the end of Fed tightening … 

 

• Silver and silver miners

• Crypto ETFs like BITO and RIOT

• Short-term Treasury ETFs like SHY and IEI

• Energy ETFs like USO, UNG and URNM

 

Also watch the dollar (DXY). It will alert you as to when the administration’s plan may be in motion … The dollar will consistently be losing value as it did last fall. That is when you should be building the Fed Pivot portfolio by averaging into positions.

 

Yesterday’s CPI report was the first little glimpse because the dollar should have risen on news inflation is higher and instead it closed lower on the day.

 

Stay tuned for more in the days and weeks ahead …

 

Live and Trade With Passion My Friends,

 

Griff