Another Stagflation Warning!
Stagflation is a double-whammy. It’s a one-two punch. It is best avoided.
The evidence that serious stagflation looms over us grows by the day. That means more inflation and a serious recession.
If you have not moved a significant portion of your assets to gold and silver, you have not sufficiently prepared yourself for a new era of stagflation.
More evidence:
The Fed’s best model for predicting growth is flashing red for recession.
The Federal Reserve Bank of Atlanta’s model, called GDPNow, is predicting a 2.8 percent downturn in the first quarter. That is a good step toward recession. Consumer spending is a major component of GDP growth, in fact almost two-thirds. Consumer spending has gone flat. February job growth failed to meet expectations. Part-time jobs were up, but the number of full-time jobs fell by twice that amount.
The administration is aware that the economy is slowing down. Treasury secretary Scott Bessant said on CNBC that the US is seeing symptoms of a withdrawal. “The market and the economy have just become hooked, and we’ve become addicted to this government spending, and there’s going to be a detox period.”
The slowing economy drives another dynamic. Because of market fears that the Federal Reserve will be forced to respond to the economic slowdown by cutting interest rates, the dollar has been down in foreign exchange trading.
The White House knows that people remain concerned about returning inflation and higher prices as a result of the tariff regime. While President Trump promised to “make America affordable again,” he and his advisors appear to be completely aware of our re-inflating economy. Trump sought to prepare Americans for it in his State of the Union address, saying “there may be a little bit of an adjustment period—you have to bear with me. Tariffs are about making America great again. There may be a little disturbance.”
The University of Michigan’s Survey of Consumers and the Conference Board both also report that consumers are increasing expecting higher inflation rates.
We repeat our warning about stagflation. Experience teaches us that gold and silver are vital to profiting and wealth protection in stagflationary periods. To find out more call or stop by Republic Monetary Exchange and speak with one of our precious metal professionals.