John Karow
Precious Metals Advisor
John Karow is an experienced lawyer and Precious Metals Advisor at Scottsdale Bullion & Coin. He holds degrees from Lehigh University, the University of Missouri, Cornell University, and St. John’s University School of Law. John is a knowledgeable authority in precious metals, dedicated to helping clients navigate economic cycles and gold and silver investments.
Inflation is soaring, prices are skyrocketing, and the US dollar is declining. This unstable economic situation is causing a lot of people to panic. Americans have some hard-hitting questions for our financial leaders. Unfortunately, they’re not going to like the answers.
Watch the video to find out what SBC Gold Founder Eric Sepanek and Precious Metals Advisor John Karow are saying about the current economic situation and why gold prices are set to surge even higher.
Inflation is Hurting Everything & Everybody
Currently, the government is reporting around 6% inflation which is nearly three-times higher than the level considered “healthy” for a functioning economy. The Fed aims to keep the inflation rate around 2% which is proving increasingly challenging given the chaos and uncertainty pervading the domestic and global markets.
Inflation is more than just a number for the average American who is reeling from the effects of this economic pressure as the value of the dollar diminishes and prices skyrocket. From the grocery store to the gas station and even on pay-day, investors are feeling the effects of the economic crisis.
The Fed is Stuck Playing Catch Up
The Federal Reserve finds itself in a precarious situation with inflation continuing to rise sharply and no effective measures to combat its disastrous economic consequences. Our financial leaders are severely restricted in their ability to manipulate the financial markets. They’re basically left with two imperfect options: print more money or increase interest rates.
These limitations result from the painful reality that the Fed is always making decisions based on the analysis of previous events. This ex post facto strategy doesn’t bode well given the unprecedented events that thrust the economy into its current state of uncertainty and destabilization. To put it in plainer terms, we’re up a raging river without a paddle.
Facing the Risks of Fiat Dependency
Ever since the US moved away from the gold standard in 1971, the dominance of the US dollar has been artificially propped up by other means. We’ve been staying afloat on a life raft of fiat dependency with all the inherent risks that come with this insecure economic setup.
The true vulnerability of our position as global market leaders is becoming clear as the position of the greenback comes under threat from various sources both foreign and domestic. Here are some of the worst threats to the stability of the USD and, as a result, the future of our economy:
Student Loan Forgiveness
The Biden administration has been open about their intention to forgive student loans which stands at a towering $1.75 trillion. What these key decision-makers fail to realize is that this number represents debts not loans. The American public will end up paying for it either way, whether that’s through taxation or future inflation.
Rise of the Petroyuan
After coming off the gold standard under President Nixon, the US convinced Saudi Arabia to trade oil in US dollars in a successful pitch to maintain the greenback’s reserve currency status. This dominance is being threatened with the rise of the petroyuan as Saudi Arabia is warming up to the idea of trading in the Chinese Yuan instead of USD.
Production Dependency
Everyone’s painfully aware of the steady decrease of American-produced goods in the economy. This dependency on foreign countries, especially China, in terms of production places the greenback on unsteady ground. Instead of being in full control of our economic condition, we’re essentially held hostage by countries who want to see the downfall of USD dominance.
Currency Wars & Gold Reserves
China and Russia have proven their animosity to the greenback’s dominance on the world stage. Putin’s regime just recently made moves to reinstate the gold standard, and China is expected to follow suit. On top of that, both countries are waging an all-out currency war against the USD which further threatens its already weakened state.
Don’t Wait to Buy Your Gold, Buy Your Gold and Wait
As the economy faces worsening inflation and the Fed fails to come up with a viable strategy, savvy investors are moving their wealth away from greenback-linked assets such as stocks and bonds and into precious metals. Gold and silver have proven to be reliable inflation hedges throughout some of the worst economic crises in history and this one is no exception.
The key for investors is to buy their gold now and wait instead of waiting to buy gold. The current pressures threatening the stability of the US dollar and the overall economy are only going to drive the value of gold higher as more investors seek protection in this safe-haven. Get your hands on our FREE precious metals investment guide to get started.