Fed Scandal Heats Up … Keep an Eye on Gold …

Hey There Income Hunters,


Well, finally the word is getting out about the Fed.


Elizabeth Warren is pounding the table about the truth behind the curtain … 


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Here is one of Warren’s quotes from her speech on the culture of corruption among high-ranking Fed officials, including chairman Jerome “J-Pow” Powell.


“He has consistently failed to serve as an effective financial regulator," Warren said. “But that’s not his only failure. Chair Powell has also failed as a leader … We need changes at the Fed."


I don’t think any rational person would want the changes that will come if Powell is not reappointed as Fed chairman …


As I discussed in Monday’s Power Income, we could see a scenario that speeds the process to hyperinflation.


Even now, there are internal and external forces building that could send us in that direction much sooner than expected.


Today, I’ll share the impact a Powell firing would have on the markets …


Powerful Impact of No Powell


During my live Griff’s Picks show last Monday (exclusive to Trading Legion and OP Pro members!) the Fed admitted that Fed vice-chair Clarida transferred million in cash into stocks the day before Powell issued a statement that was preparing for a possible rate cut, due to pandemic concerns, which sparked a major market surge.


It is really important to keep an eye on developments from here.


Whether these guys did anything technically wrong or not, J-Pow is skating on thin ice … 


If Powell is not reappointed, the Fed will become ultra-dovish and the market narrative will quickly shift to much higher inflation.


Not that we even need a Fed scandal to go there. Check out the latest Inflation expectations 3-years out:


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Debt Projections Trap the Fed Into Inflating for Many Years 


The numbers illustrated below are from the Congressional Budget Office (CBO). If anything, they could be conservative.


What this trend means is that in the years ahead, the Fed will not even be able to service its debt with tax receipts. They will be forced to print money just to service the debt …


And that is the path to hyperinflation.


Once they lock into printing new dollars simply to pay the interest on debt, consumers will lose confidence and start spending their dollars and selling their bonds …  


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This will be the moment that the dollar depreciates and financial markets collapse — while Gold soars.


You don’t have to be a head of this trade, but you have to be quick to recognize it and jump on board.


Gold Is Primed and Ready for a Breakout


Just as the market’s sentiment towards gold has plunged, the price action is showing signs of consolidation, which usually precedes bullish breakouts.


Gold, Bitcoin and commodities will soar as trillions of dollars will be forced to move out of financial assets and into hard assets …


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Bring It Home 


We are going to witness the only force bigger than any government or central bank — inflation.


The Fed wanted inflation because politicians refused to disappoint their constituents.


Well, now, they are locking into a scenario no one ever imagined. In the short run, perhaps 3-6 months, a reopening trade and a passage of both spending bills could kick the can down the road, but if Powell is fired the path to hyperinflation is clear.


Much more to come …


Live and Trade With Passion My Friends,


Griff 

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