Stagflation Here and Now?

The Worst of Both Worlds!

Is the Stagflation Train pulling into the station?  Bringing both inflation and a depressingly stagnant slow growth or shrinking economy with it?

If you listen carefully, you can hear its whistle blowing.  It’s coming around the bend!

The Stagflation Train brings carloads of economic misery, but at the same time as we know from experience, we can protect ourselves from stagflation and profit with gold!  

Bigly!

Stagflation has two components, inflation and stagnation.  Rising prices in slow or no growth economy means the cost of living goes up, but the opportunities to make money go down.  And that is a bad combination!

The inflation case is quite simple, and we have been made it often recently.  We are already experiencing re-inflation.  The highest inflation in 40 years that we experienced during Biden’s term never really went away.  The Consumer Price Index for January has climbed for the fourth straight month.  The month over month numbers, increase for the same period one year earlier have risen for the seventh straight month.  

What is the evidence of the stagnation part of stagflation?   With this headline, “US Economic Growth Falls Back Below Average,” the Wall Street Journal just reported that falling activity in production, personal consumption, and housing are to blame for weaker activity in 2025.

There is much more.  More and more commercial real estate loans for offices and apartments are in distress.  Housing sales are down as is consumer spending. Consumer confidence is tanking.  Consumer credit card delinquencies have risen to a 13-year high.

Here’s one more indicator of trouble ahead for the stock market and the economy as a whole.  It’s one we note seriously.  America’s favorite stock picker, Warren Buffett of Berkshire Hathaway can’t find much worth buying.  He’s stockpiling cash, $334 billion, to weather the storm.  That is up $100 billion since the pandemic.  Berkshire sold a net $6.7 billion in the fourth quarter.

A brand-new stagflation decade will mean a gold and silver bull market that will be much bigger than the one your grandparents remember.  

So here is what actually happened in the last Stagflation Decade.  In the period from 1970 through 1979, the Dow Industrials rose 11.5 percent. 

Silver climbed 1,699 percent.

Gold was up 1,820 percent.  

Speak with your Republic Monetary Exchange professional advisor about stagflation.  Prepare yourself now without delay.