Inflation Showing Up

Is the T-Bond starting to sniff out some inflation concerns? The 10-Year U.S. Treasury nudged higher to 1.21% this week. As this chart shows, the trend is undeniable.

My IDW hit a new high again this week at 182.05 as this “everything bubble” continues to expand. It is primarily the Commodity items in my index, which eventually show up in the CPI, rather than Stocks, that have risen the most since January 1, 2021. The Rogers Index, which measures food, clothing, energy, and base metals, is up 11.24% in the first six weeks of 2021. The Housing Index is up by 11.78%. The big gainer is Oil, which is up 22.77%. Copper has gained 6.12%. Various equities sectors like the Auto, Real Estate, and Consumers are represented as well as India and China stocks. Those have all gained in this everything equity bubble during the first six seeks of this bull market. But regarding that fact, I need to make two points. None of them have gained as much as the commodity indexes and secondly, equity market inflation doesn’t get factored into the CPI. In fact, one of the main drivers for equity market inflation is debt market inflation all caused by fraudulent fiat money creation that is now exploding upward and I fear leading to the fires of hyperinflation.

 

About Jay Taylor