Inflation is a chief concern at EuroPac, just as the economy is headed back to a 2008 style Great Recession, which could result in Stagflation
Stagflation has positive implications for the PMs sector, as illustrated by the 1970's gold bull market, case study.
As 2 year / 10 year Treasury note yields invert, perhaps as soon as early 2019, 90% of the time this event coincides with a recession / stock market correction.
Fed policymakers will reverse hawkish rate hikes and resume dovish rate cuts to restore normalcy to the markets.
The Smoot-Hawley Tariff Act of 1930 resulted in a reduction of 66% of global trade.
According to some economists, this exacerbated the Great Depression.
The duo examine if the current trade war could be combine with higher rates to foment a new Great Recession.
Our guest outlines a possible case for hyperinflation, similar to Venezuela, where the Bolivar went from near parity with the US dollar, to virtually zero, requiring tens of millions of Bolivar to purchase a single ounce of gold.
The shifting yield curve (spread between 2 and 10 year Treasury Notes), suggests that a liquidity crisis could unfold similar to the Great Recession.
90% of recessions (Michael Pento, 2018) occurred after the yield curve inverted.
If the current price hike trend continues with two more anticipated by the FOMC this year, the inversion could portend trouble for the financial markets.
Our guest notes that the US has two previous failed experiments in trade tariffs, first "The Tariff of Abominations of 1825," and the 1930 Smoot-Hawley Act.
Both Tariff Acts were accused of exacerbating the unemployment, slowing economic growth and curtailing global trade.
Officials are advised to proceed cautiously with the current trade tariffs to avoid crushing global economic contraction, collapsing global trade and widespread unemployment.
Peter Schiff President & Chief Global Strategist Peter is one of the few investment advisors to have correctly called the current bear market before it began and to have positioned his clients accordingly. As a result of his accurate forecasts of the mortgage meltdown, credit crunch, and decoupling of commodities, precious metals, and foreign markets from the U.S. Dollar, he has become a sought-after economic commentator on a range of investment topics. Peter delivers lectures at major economic and investment conferences, and is quoted often in the print media, including the Wall Street Journal, New York Times, L.A. Times, Barron’s, BusinessWeek, Time and Fortune. His broadcast credits include regular guest appearances on CNBC, Fox Business, CNN, MSNBC, and Fox News Channel, as well as hosting a weekly radio show. As an author, he has written four best-selling books, including his latest: " Crash Proof 2.0: How to Profit from the Economic Collapse" and "How an Economy Grows and Why It Crashes."
With a degree in geophysics and a number of fascinating summers in mining exploration, one winter in "the bush" quickly led Bob into the financial markets. This included experience on the trading desk and in the research department of a large investment dealer, which led to institutional stock and bond sales.
Bob's review of financial history provided the forecasting models designed to anticipate significant trend reversals in the sometimes alarming volatility typical of the transition from rampant speculation in tangible assets to fabulous speculation in financial assets.
In anticipation of the latter opportunity, a monthly publication for financial institutions was started in January 1982.
This competently covered the stock market, the yield curve, credit spreads as well as metal and energy prices.
In 1998 the Institutional Advisors website was started as a forum for unique and reliable financial research.
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