Stagflation Raising Its Ugly Head…Again

 

Most people don’t remember much about economics in the 1970s and how Stagflation nearly crippled our economy.

 

Unfortunately, we’re living through it again.

 

So, let’s look at Stagflation.

 

stag·fla·tion

/ˌstaɡˈflāSH(ə)n/

1. persistent high inflation combined with high unemployment and stagnant demand in a country’s economy.

 

 

“…In Plain English,” Stagflation is what we’re experiencing in our economy today.

And thanks to the warmongering Neocons in the District of Caligula, there is no sign of it letting up anytime soon.

 

And the markets’ reaction to yesterday’s decline in GDP indicates we are in for a rough ride as we are looking at a recession.

 

A recession is defined as two consecutive quarterly GDP declines.

 

And if this continues to weaken the US economy into June, we see an economic “recessionary” decline that will confuse even the Federal Reserve.

Why?

 

Because we are dealing with shortages much like the 1970s.

 

And that means when inflation rises in a recession it produced Stagflation that could possible last several years.

 

Meanwhile, the Boyz in the “Club” are saying that investors now expect a longer wait for the first rate cut from the Federal Reserve.

 

But back in January, we said it Ain’t Gonna Happen…

 

From:  Goldman Sees 4 Rate Cuts in 2024  (HERE)

We believe:

 

1. There may only be one Fed Cutin rates in 2024

2. And that the FED might raise rates again (GASP! How Can you say that?)

3. Have you been paying attention to how China’s market is doing so far this year?

4. And before the end of 2024 we believe the Dollar will gain strengthand destroy everything in its path.

 

One of the main reasons we believe rates will go up in 2024 is tied to inflation.

And the greatest cause of inflation is…wait for it…WAR.

 

So, unless we stop funding Ukraine and Israel (Cough! Ain’t gonna happen, Cough! Cough!) inflation ain’t going away.

And you cannot fight Inflation by lowering rates.

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So, yesterday’s GDP report was the worst of both worlds insofar as inflationary pressures are persisting AND economic growth is slowing.

 

Question:  Why don’t Economists ever foresee a change in direction?

 

Answer:  They (just the bought-and-paid-for media Presstitutes) only report what their Wall Street Overlords tell them to report.

 

So don’t expect to hear much about Stagflation while our government continues to raise taxes…which reduces GDP AND simultaneously raises the cost of production.

 

Bottom line???

 

Inflation will continue to rise BECAUSE of shortages and rising production costs.

 

And the Boyz answer to all the above can be reduced to one word.

 

WAR.

Be sure to read our March Newsletter featured article:

 

Investments to Own During World War 3

 

And Why You Should Be Buying Them Now

(HERE)

 

 

And see how to invest during STAGFLATION in our upcoming May “…In Plain English” newsletter (HERE).

 

Share this with a friend…especially if they are old enough to remember the Stagflation of the 1970s.

They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

 

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