The Inflation Reality Check

[00:00:00] Speaker 1: the morgan report with david morgan discover how to build and protect your wealth at themorganreport.com [00:00:05] Speaker 2: david morgan of the morgan report for the week ending 12 june 2026 welcome to this week's weekly perspective this week the markets received another reminder that inflation remains far from defeated both the consumer price index the cpi and the producer price index the ppi came in hotter than many expected reinforcing what most people already know from everyday experience the cost of living continues to rise now whenever these inflation reports are released i think it's important to remember exactly what's supposed to be measured and what is not the official cpi numbers excludes food and energy and its so-called core measurement yet food and energy are two of the most essential expenses for virtually every household you can postpone buying a new television you cannot postpone buying groceries or filling up a gas tank for years i've mentioned the official inflation statistics often understate what average citizens already know or experience if your grocery bill is up your insurance bill is up your utility bill is up and your health care costs are rising then your personal inflation rate is likely to be much higher than the numbers suggest the bond market continues to wrestle with this reality higher inflation means interest rates may need to remain elevated longer than policy makers would prefer the problem of course is the united states government is carrying debt levels that become increasingly difficult to finance as rates rise every percentage point increase in borrowing costs translates into hundreds of billions of dollars in and additional interest rate expense obviously this is a dilemma the federal reserve wants inflation lower but higher rates place increasing stress on both the treasury and broader economy the result is a policy environment that remains unstable and uncertain turning to the stock market investors continue to display remarkable optimism despite slowing economic growth fluctuations geopolitical concerns and persistent inflation pressures equities remain relatively resilient however the market appears increasingly dependent on liquidity and expectations of future monetary easing rather than traditional value metrics as we've discussed many times before markets can remain disconnected from fundamentals longer than most expect but eventually fundamentals do matter the energy sector or remains one of the most important indicators to watch despite ongoing concerns that global growth energy markets remain relatively tight years of underinvestment and conventional energy production have not disappeared and geopolitical disruption or supply shocks could quickly send prices higher feeding directly into inflation for precious metals investors the inflation story remains constructive "gold continues to perform its traditional roles on monetary asset and store of value central banks around the world remain significant buyers reflecting a growing desire to diversify away from excessive dependence on the u.s dollar of dollar-based securities so remains perhaps the most under misunderstood market in the commodity complex "It is simultaneously a monetary metal and a critical industrial metal demand from electrification solar AI infrastructure and advancing manufacturing continues to build while new mine supply struggles to keep pace while both gold and silver can experience volatility long-term fundamentals still remain intact "the larger story is not simply inflation it's a gradual erosion of confidence in all fiat currencies mounting sovereign debt burdens in a financial system that requires ever increasing levels of debt to create the illusion of being sustained" "so as you close out this week my view remains largely unchanged inflation is proving stickier than policy makers had hoped bond market faces ongoing challenges stocks remain expensive by any metric you want to use and oil continues to signal potential supply concerns and the precious metals continue to provide an important form of financial insurance in an increasingly uncertain world thanks for listening this is david morgan of the morgan report until next week remember education is your best investment did not post a lot on twitter this week got a couple things here some accolades from some members down here where i'll be doing an online conference rick rule will be there and a couple others and you can use this uh link here to get the conference details and and get access to it uh did an interview with the health ranger that's posted here and a few other posts during the week great wealth shift this is important to know and this has been going on for some time most of you know if not all of you that the amount of gold as a reserve asset has exceeded the amount of treasury holdings for a reserve asset so gold has taken first place as reserve asset over the treasuries which is really a very important marker and speaks volumes if you know what it's actually telling us i'm going to leave it here i'll be back with you next week with another weekly perspective [00:05:54] Speaker 1: the u.s government debt is about to cross 37 trillion dollars that's not a typo that's trillion with a t tariffs are being used to try and even the playing fields global supply chains are shifting inflation isn't going away and the value of your dollar it's quietly being drained while no one is really talking about this the truth is we're living through the early stages of a financial reset whether anyone wants to admit it or not and if you're still relying on mainstream headlines or financial advisors who just tell you to write it out you could be blindsided when things really shift that's where the morgan report comes in for over 25 years david morgan has been helping investors cut through the noise he tracks what actually drives markets from precious metals and mining stocks to global debt and monetary policy and show you how to protect and grow your wealth when the system is under stress this isn't just about gold and silver it's about having a clear-eyed view of where things are headed and making sure you're not caught off guard the morgan report gives you real research honest analysis and strategies you can act on even in a world of rising debt unstable currencies and economic uncertainty go to themorganreport.com today download your free report get informed get ahead and take back control of your financial future the morganreport.com because 37 trillion in debt won't fix itself