"There is one word that is at the heart of all these sickening declines," Jim Cramer said on his

"RealMoney" radio show Tuesday. That word, he said, is inflation.

Market players are always thinking about inflation - whether there is too much of it, or too little of it, where it is concentrated, etc.

The producer price index monthly report, which measures what it costs for manufactures to make products, came out today, Cramer said. It told us that in May prices rose. It is this number which makes people believe inflation is still here, he said.

People feel paralyzed until they figure out what the

Federal Reserve

is going to do.

"But before we say 'let's forget about the stock market,' let's take a look at two gauges that I have used in my career," Cramer said. "These two gauges to measure inflation have never failed me. They are gold and the 10-year bond."

Right now, gold is down huge, about $150 in a month. Gold, along with the 10-year bond, is signaling that we could be in a major slowdown, if not recession, he said.

"These two have never lied to me," Cramer said. "What they are telling me now is that inflation is not the problem, but we are seeing a lessening of business activity."

While the Fed is worried about too much demand gold and the 10-year bond are signaling too little demand. After 16 continuous rate hikes, a decline in commodities and now stocks, Cramer said he cannot go against his indicators.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

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