Stagflation!

Fed Gives Up on Inflation as US Declines Ahead of November Elections

Lena Petrova Video

4 Key Points made in the Video.

1.)  The Federal Reserve is done fighting inflation and now is going to drop rates in an attempt to propel employment forward.  The most likely outcome is stagflation.

2.)  Treasuries no longer perceived worldwide as the premier safe haven investment.  Bond holders perception seen no different in quality than treasuries of France, Germany, and England or high quality corporate bonds.  Current interest expense now exceeds defense spending budget.

3.)  Federal Reserve Chairman indicated in typical Fed speak – I’ll translate – that the economy is doing far worse than reported.

4.)  The Dollar Index declined 10% after Chairman Powell’s statements.

Conclusion:  

Expect over the coming years…STAGFLATION!

Shadow Stats by John Williams click HERE to see the real inflation numbers!

Four areas that respond well financially in a stagflation environment to preserve your savings purchasing power.

Silver bullion

Gold bullion

Short term U.S. Treasuries 2 years or less.

Foreign currencies with ultra low inflationary economies – Swiss Treasury notes and bonds or savings accounts.