Is inflation about to destroy the economy?
Based on the recent consumer index pricing report, all signs report to “yes.”
Price increases in May were the highest we have seen in 13 years, which, if you recall, was when we saw the country spin out of control under Obama.
With a 0.6 percent increase over the last month, 0.2 percent higher than expected, all the warning signs are there.
In fact, Deutsche Bank has issued a formal warning that inflation in the United States could reach 1940 and 1970s levels.
Our own fed has also issued a warning report, stating, “A lack of preparation for the return of inflation is concerning. Even if some inflation today is transitory, it may feed into expectations as in the 1970s.”
When you couple this with the lackluster jobs reports we have seen, all the warning signs are there that this country is headed into a massive economic tailspin.
Investors are already pointing to the next jobs report as a measuring stick. If the trend from the last three months continues, it could very likely trigger a downward swing in the market the likes we have not seen in more than a decade.