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NEW WARNING: Rising Delinquencies and Inflation Point to Stagflation

Taylor Kenney - ITM Trading Oct 17, 2024

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In the current economic climate, it’s becoming increasingly clear that the Federal Reserve’s claims of inflation being under control were premature. Not only is inflation still with us, but it is projected to continue rising in the near future, according to new reports. For financially conservative individuals concerned about safeguarding their wealth, these developments present significant challenges.

At ITM Trading, we understand the concerns our audience faces: the threat of economic collapse, inflation eating away at the value of the US dollar, and the growing fear that retirement may become unaffordable. But the situation is not hopeless. By understanding the economic forces at play, you can take proactive steps to protect your financial future.

The Dangers of Rising Inflation and Stagflation

Inflation, the gradual rise in prices that erodes the purchasing power of your dollar, has been a persistent issue in the current economy. Reports suggest that inflation is projected to remain at around 3% in the coming years, but don’t be misled—this is significantly higher than the Federal Reserve’s long-standing target of 2%. While 3% might sound minor, the cumulative effect on your savings and purchasing power can be devastating over time.

More troubling, however, is the looming risk of stagflation—a dreaded economic scenario where inflation remains high while economic growth slows, leading to rising unemployment. Many remember the harsh realities of stagflation from the 1970s and 80s, and unfortunately, we may be heading back into that territory.

The Federal Reserve is caught in an impossible balancing act: if they raise interest rates to combat inflation, unemployment may rise. If they cut rates too early to stimulate job growth, inflation could come roaring back even stronger. This delicate dance is ongoing, and it’s uncertain how long they can keep it up.

Rising Delinquencies: A Red Flag for the Economy

Another alarming sign that we could be heading toward stagflation is the rise in delinquencies. Currently, the probability of Americans missing a debt payment is the highest it’s been since April 2020. More than 14% of Americans are at risk of falling behind on their debt, which is a stark reminder that many households are struggling to manage the increasing costs of living.

This growing inability to pay down debt signals that consumer spending—largely fueled by credit—will likely slow down. With inflation pushing prices higher and wages not keeping pace, many Americans are being stretched too thin, and their financial security is at risk.

The situation is further exacerbated by rising oil prices, global geopolitical instability, and government stimulus efforts in foreign economies, such as China. These factors add more fuel to the inflationary fire, which could lead to even more economic distress down the road.

What Can You Do to Protect Your Wealth?

As economic uncertainty looms, the value of the US dollar will likely continue to decline. For those nearing or in retirement, the risk is especially high because your savings, investments, or retirement accounts—if they are dollar-denominated—will lose value faster than expected. Inflation erodes your purchasing power daily, meaning that a dollar today buys less than it did yesterday. This scenario can have severe implications for anyone relying on a fixed income or a nest egg for their retirement.

But while you cannot control inflation, interest rates, or geopolitical conflicts, you can take steps to protect your wealth. That’s where physical gold and silver come in. Unlike fiat currency, gold and silver are tangible assets that have retained their value throughout history. They aren’t tied to the whims of government policies or the Federal Reserve’s monetary decisions, and most importantly, they offer a hedge against both inflation and economic instability.

Take Control of Your Financial Future

At ITM Trading, we’ve spent over 28 years helping people like you build resilient portfolios that can withstand the challenges of economic uncertainty. By investing in gold and silver, you can protect your wealth from the eroding effects of inflation and safeguard your retirement.

If you’re concerned about the rising risk of stagflation, delinquencies, or the long-term impact of inflation on your financial future, now is the time to act. Speak with one of our experts today, and we can help you develop a personalized strategy that aligns with your goals. Whether you’re looking to safeguard your savings or create a plan that offers real security for the future, we’re here to guide you every step of the way.

Click the link below or call us to schedule a consultation with a member of our team. Protect your wealth today and secure your financial future with ITM Trading.

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