“The guys in Washington just won’t take their foot off the gas”.
— Precious Metals Advisor John Karow
It’s easy to get lost in the whirlwind of terrible news and events that have become a permanent fixture of the current economic situation. People are feeling the pain of rampant inflation more and more with each passing day, but circumstances aren’t becoming any clearer.
The key in these uncertain times is to pay attention to what the movers and shakers in the government are doing, what’s motivating their decisions, and where the power is accumulating. Watch the video to hear what Scottsdale Bullion & Coin Founder Eric Sepanek and Precious Metals Advisor John Karow have to say about the position in which investors find themselves.
The Federal Reserve is changing its tune.
After the Federal Reserve dragged its heels in acknowledging the reality of inflation just a few months ago, it took a position warning against the dangers of inflation. However, it seems the Fed has made a sharp change in direction as Jerome Powell appears to suggest that inflation isn’t a big deal and the solution to the problem is quite simple: to print more money.
It’s important to note the Fed’s endless money printing isn’t resulting from the unique economic and geopolitical pressures facing the US today. The war in Ukraine and other significant events are convenient scapegoats used by politicians and government leaders to divert blame away from the real culprit which is the country’s disastrous experiment with Modern Monetary Theory.
In short, this school of economic thought posits that the US government can pump as much money into the economy as needed without any negative repercussions. The onslaught of inflation Americans are seeing across the board is a clear invalidation of this theory, yet Jerome Powell’s actions don’t show any indication of a retreat from this catastrophic idea.
Learn How to Avoid Costly Rookie Mistakes & Invest in Gold Like a Pro!
Get Free Gold Investor Guide
Careless spending is encouraging fraud.
Unfortunately, inflation isn’t the only harmful byproduct of the Fed’s oversimplified perspective of the market. Dangerous overprinting has led to unprecedented fraud the scale of which the American public has never seen. News recently broke of $80 billion that was stolen from the Paycheck Protection Program which was intended as COVID relief aid.
It shouldn’t come as a surprise that handing out free money encourages this kind of thievery. A similar deluge of fraud came during the economic bailout of 2008 when banks, auto companies, and other failing industries were synthetically propped up with $426 billion of taxpayer dollars. There’s no shortage of examples of swindlers taking advantage of government overspending.
Inflation is causing the slow death of the dollar.
Rampant inflation and unrestricted spending is a grave combination for the economy. The duo is directly causing the devaluing of the dollar. As a result, greenback-linked assets such as stocks and bonds are getting pummeled. With inflation showing no signs of stopping and the Fed’s marriage to printing, smart money investors are heading for safe-havens such as gold and silver coins and gold bars.
Gold, silver, and other precious metals have always been reliable hedges against inflation providing wealth protection against even the most threatening economic pressures. If you’re interested in learning how to protect yourself against inflation, get your FREE COPY of our gold and silver investment guide today. Don’t wait until it’s too late.
“A stagflationary negative supply shock poses a dilemma for central bankers. Because they care about anchoring inflation expectations, they need to normalize monetary policy quickly, even though that will lead to a further slowdown and possibly a recession. But because they also care about growth, they need to proceed slowly with policy normalization, even though that risks de-anchoring inflation expectations and triggering a wage-price spiral.”