Intro: In response to the recent U.S. boycott of Russian oil, French Finance Minister Bruno Le Maire told an energy conference it is imperative that the economic fallout from the Ukraine war must not lead to 1970s-style Stagflation—a combination of high inflation and low growth.
We haven’t seen Stagflation in 40 years, so is it possible for Stagflation to raise its ugly head again? For that matter, what exactly is Stagflation, and should we be concerned about it?
Our economic expert, Devlyn Steele, says we should be very concerned. He goes so far as to say we may be on the cusp of a “Volcker Moment,” reminiscent of the transition years between the Jimmy Carter and Ronald Reagan administrations. Devlyn Steel is a financial analyst and spokesman with Augusta Precious Metals. Welcome, Devlyn.
Talking Points:
- What exactly is Stagflation?
Answer: It’s what we saw during the Jimmy Carter years: A stagnant economy that ordinarily would cause prices to drop due to a poorer economy and less discretionary money, but instead, prices rose even during a stagnant economy, so it became the worst of both worlds: stagnation and inflation, thus the term, Stagflation.
- We see inflation rearing its ugly head again whenever we go to the grocery store or the gas pumps. Yet, is either of those categories even included in government inflation statistics?
Answer: No, they are not. The excuse government officials give us is that those prices are too volatile, so they don’t count them. But I say this is all the more reason for them to be included—especially since apart from housing, I can hardly think of two more important areas in our life. First, we all need to feed our stomachs, and to get around, we need to feed our gas tanks. Both are tough to do when wages are rising more slowly than the rate of inflation.
- You mentioned housing. Let’s talk about this. Haven’t home building supplies gone through the roof? Is housing included in the government measurement of inflation?
Answer: Yes, housing is through the roof, and no, the government doesn’t include your home expense as part of their official inflation number.
- Sounds suspiciously convenient since government benefits are based on their inflation numbers, right?
Answer: Exactly. But fudging the figures, they pay out less of those nearly worthless fiat dollars they are printing.
- Let’s talk about those fiat dollars. What are they backed by gold or anything of value? What are they worth now and likely worth in the future?
Answer: They are not backed by gold or any other tangible assets. They are worth whatever you think of the government and politicians. Public opinion polls show that people believe in their government overlords less than ever.
- So, if politicians and the paper money they represent are at an all-time low, does that have anything to do with why the actual inflation rate is rising so rapidly?
Answer: Absolutely. And we may see runaway inflation hit us in the face so quickly that we won’t know what hit us. And government raises to welfare benefits will not likely keep up with the rate of actual inflation, triggering higher crime and a myriad of misery.
- How are food and gas factored in government numbers for inflation and are they accurate?
Answer: Got a couple of hours? Their numbers are understated. The true numbers for inflation are scary high.
- Tell us more about Stagflation.
Answer: Stagflation is the perfect storm of high gas prices, high grocery prices, high housing prices, and lower wages due to business stagnation.
- Then how will the average person hold the line on their current lifestyles?
Answer: They won’t. They can’t. They’ll have to scale back—way back. And they will holler a lot in the process. Politicians will probably add more subsidies, only helping temporarily, since those subsidies will only trigger more inflation and the need for more subsidies to keep up with the higher prices. Eventually, the entire system will fall apart due to the government doing the opposite of what is needed: Rewarding laziness, punishing productivity, imposing newer and more creative ways to bog down businesses with health mandates, and imposing all sorts of new nonproductive intrusions on business and productivity. The Fed’s ULTRA loose monetary policy and politicians add in trillions more in pork, the FED is stuck between a rock and a hard place. If the FED doesn’t RAISE rates, hyperinflation will destroy wealth and the U.S. Dollar. But if the FED raises rates, it will ruin the economy and stock market.
- We are on the cusp of a “Volcker Moment.” Lest we forget, Federal Reserve Chairman Paul Volcker hiked rates to tackle inflation in 1980-1982. The result? Double-dip recession. But this time, the GLOBAL DEBT is THREE TIMES HIGHER than it was in the 1970s! Therefore, an anti-inflationary policy will lead to a CATASTROPHIC depression rather than a mere severe recession.
- You and your company are firm believers in holding tangible assets like gold or silver. Tell us about your company, Augusta Precious Metals, and where we may get more information on tangible assets.
ABOUT DEVLYN STEELE…
Devlyn Steele began in 1983 as a financial analyst for Butler Aviation and went on to work for UPS and People’s Express Airlines. As his career has progressed, he’s been in analytics in various industries, from finance, manufacturing, and technology to venture capital and more. He has sat on the boards of several Silicon Valley and technology companies and still does.
He is a member of the Harvard School of Business analytics program and predicted the housing crash in 2008 and the rise in gold and silver that followed.
Devlyn is an avid investor in all markets: real estate, stocks, gold and silver, and cryptocurrencies, and is a gold bull.
Devlyn is the director of education for Augusta Precious Metals. His focus as an analyst is primarily on Federal Reserve policies that can affect the dollar and precious metals.
CONTACT: To schedule an interview with Devlyn Steele, email jerry.specialguests@gmail.com or call Jerry McGlothlin at 919-437-0001 or Celinda Hawkins at (432) 349-2736.
100 Guests/Topics: https://specialguests.com/guests-topics/
