Staglation is coming--- Worse for Industries, Better for Gold

I am currently expecting a greater recession combined in comparison to the times before as our debt levels have gone through the roof. Some of the reasons of the hypothesis is because of increasing inflation and the Fed's tightening cycle. High inflation will continue on to 2023 and namely 2024 as per the prediction and because of the inverted key yield curve in the bond market. The result is going to be a recession with high levels of inflation-- which equates to stagflation. During the periods of stagflation, the FED is in a rut where they have to either fight inflation or fight recession, they will try to do both and see a middle ground, however, this will not work out favourably for the public where the cost of living is going to go up exponentially, and as the trust of holding asset backed securities will become way to volatile. People will shift towards the precious metals market to retain and protect their purchasing power.

The space for fiscal policy has been constrained and will lead to lower growth, and the current tightening of monetary policy all over the world will have great repercussions for the global economy. We are already seeing the fragility of the system at hand: those include the financial asset bubble (declining stock prices), the reduction of financial wealth, and the reduction and value of collaterals.

What does it mean for gold? Gold has always done well in terms of high interest rates and inflationary times, so 2023 will be a good time to get into gold or potentially be a slight selloff as people need to maintain their lifestyle and discretionary expenses. The savers in gold will benefit over the long term based on what is happening, and there is a high likely hood that it will potentially break to at least $2700 CAD and silver will break to $33. This is just a prediction based on assumptions and what is happening on a micro and macro scale. Nobody knows for sure, however, we can make our best predictions and will keep on getting more gold and silver as it is still relatively cheap.

Don't you think that we are maybe entering a full blown DEPRESSION greater than the one we had a 100years ago?

I feel the S..T hitting the fan in the UK already, looking around where I live we look like a 3rd world country, hyperinflation in our energy costs ie + 100% in 1 year, potholes in the roads, broken institutions everywhere, clowns in govt, NHS, Railways, Schools, Post Office, Royal Mint all kaput. Strikes everywhere. QE, Magic MoneyTrees growing everywhere around Westminster. Underestimated inflation everywhere. Mental Health of Population at an all time low.

Looks to me like our revolution in the 60's got highjacked by the establishment. My wife and I were flower people, hippies, with bells around our necks. Now we can't move because of the chains around our new pandemic style societies legs.

Anyway, that's me being polite and measured, you should see it when I have a RANT!

I hope this doesn't upset the moderators on our happy forum.

Course not, @denby , you were very measured. I'd probably better not look at one of your rants though.

I love SSGSC’s posts. They follow a formula. Doom and gloom - Fiat currency is dead - Precious Metals are the answer - gold will shoot to the moon - buy it while its cheap - by the way, we sell gold. Ha ha ha. Step right up, I’ve got some snake oil to sell you. Cures all ills.