The Scariest Chart Right Now—Will It Play Out?

-Jeff Clark, TheGoldAdvisor.com
I’ve seen many charts over the years. Most are interesting, but to really grab my attention requires something exceptional.
It’s got to be compelling, of course, but what makes the most gripping chart for me is this: something that could directly affect my life or my investments. One that makes me ponder it long after I first saw it.
This is one of those charts.
That’s because if it plays out as it’s currently unfolding, it has huge ramifications for us, both as consumers and investors.
This chart shows the path of the CPI from 1966 through 1983 (black line). The gold line tracks the CPI from 2013 to today.
The correlation is eerie. They basically have followed the same pattern for the past 12 years.
The path of the CPI today is very similar to the path of the CPI back then. The correlation is over 90%.
Also notice there were multiple jumps of prices in the older CPI. And each spike was higher than the one before, until it got under control. If we were to track what happened back then, it’s not hard to see we could be headed
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