As the specter of stagflation looms over financial markets, the Federal Reserve finds itself entangled in the perplexing dilemma of cutting rates in the face of rising inflation. A scenario that seems oxymoronic, given the historical norms, and throws the spotlight on the incongruities within the current economic landscape.
Inflationary concerns take center stage, with key U.S. inflation measures for January painting a vivid picture. Every metric in the table exceeds the Fed’s annualized target of 2.0%, with readings ranging from 3.4% to 4.4%. The Fed, facing pressure to act, grapples with the challenge of cutting rates to stimulate the economy while risking an inflationary spiral.
Meanwhile, an unexpected hero emerges in the form of gold. Beyond its traditional role as a store of value, gold’s resistance to laser attacks in the DOE National Accelerator Labs catapults it into the realm of space exploration. With space stations, satellites, and spacecraft requiring gold-plated armor, a surge in demand for the precious metal is anticipated, potentially doubling its income-generating capacity.
However, as gold’s star ascends, the housing market faces a starkly different fate. The ripple effects of skyrocketing mortgage rates and home prices in 2022 and 2023 have transformed the dream of homeownership into a distant reality for many. Affordability challenges are exacerbated by factors like higher property taxes and insurance, making homeownership comfortable only for the affluent. The middle class is increasingly pushed towards renting, with the average income needed to afford a home rising to $106,000 – an 80% increase since January 2020.
In this economic landscape marked by paradoxes, gold glitters as a symbol of resilience, while the housing market struggles to find a footing amidst soaring costs.
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Gold Grabs Center-Stage as Stagflation Starts to Rage
Rampant FinMedia speculation as to the timing of the Federal Reserve cutting rates into rising inflation is one of the most oxymoronic concepts across the financial spectrum in our memory…t.co/t8fpSrL0Oc
— Peter Spina ⚒ GoldSeek | SilverSeek (@goldseek) March 4, 2024
DOE National Accelerator Labs Prove Gold's Resistance to Laser Attacks, Projecting 22.4 Million Ounce Demand
The Biggest + Bullish Gold Story since Space Exploration Started
Gold-plated armor means space stations, satellites & spacecraft will need gold..t.co/JpKhj2HN9x
— Peter Spina ⚒ GoldSeek | SilverSeek (@goldseek) March 4, 2024
Linkt.co/luzBXHQZK8
— QE Infinity (@StealthQE4) March 4, 2024
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After a strong rebound in January, the world manufacturing PMI corrected in February, with an uneninspiring movement in the components as activity fell at the margin while inflationary pressure on goods increased pic.twitter.com/4wm5J7Nh5n— Patrick Zweifel (@PkZweifel) March 4, 2024
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. Global inflation components show that short-term pressures have rebounded slightly further from very low levels and although they remain well below their long-term average, tend to suggest that the rapid disinflation in goods is behind us pic.twitter.com/1ASZthAAok— Patrick Zweifel (@PkZweifel) March 4, 2024
"I'm not buying fast food anymore"
"Matter of fact, I don't have the money to buy fast food anymore"
"Who made these prices?"
"One trip at McDonald's right now, one single trip, $30 bucks"
"That's pizza money. You're not pizza. You're fast food"
"I'm done with fast food"… pic.twitter.com/9gcTLCQJKR
— Wall Street Silver (@WallStreetSilv) March 3, 2024