Theoretically, the Federal Reserve can control inflation. To do so, it simply decreases the money supply by selling its enormous stockpile of bonds rather than buying them. That’s not just theory, that’s how it actually works.

And no one dares to mention it.

A notable exception in this global vow of silence is Mark Hulbert, one of the best writers at MarketWatch (article link below), who recently pointed out a very uncomfortable truth:

It’s hard to beat the S&P.

Despite the Fed's wishful thinking that it's only temporary, rising inflation is the biggest threat to the stock and bond markets -- not only according to our many books predicting the coming big bubble pop, but also according to billionaire hedge fund manager Paul Tudor Jones, who correctly called the 1987 stock market crash.

The Wall Street Journal wrote an interesting article on China's huge property conglomerate, Evergrande, which is in deep trouble (the link to the article is at the end of this post). Evergrande’s problems reflect a much broader future problem for the Chinese economy.

Wouldn’t it be great if the talking heads on TV explained what’s really driving the markets?

For example, two weeks ago the market had a big drop due to the release of a transcript of a recent federal Reserve meeting where the members talked about reducing money printing later this year. In addition, there was growing fears of the Delta Covid variant starting to hurt the world’s economy, and evidence that the US economy was slowing faster than expected after the last round of stimulus.