Will You Get Caught Napping When Inflation Rears Its Ugly Head?

In the 1950s, it was common in the United States to see inflation portrayed as a snake. The inflation snake would creep, it would slink, then it would attack and bite. At least a snake is what you saw on government-sponsored posters as you rode the subways in America’s big cities – posters that tried to prepare a deliriously happy post-World-War II public on price increases to come.
 
The first full year of the 1950s actually began with deflation, not inflation. Immediately afterwards, in the latter half of 1950, the United States moved into 8% and then 9% inflation.
 
If this scenario seems familiar, consider the state of the United States economy or, more precisely, the global economy these last several years. Central bankers and economists have been haunted by slipping growth rates, declining commodity prices and increasing unemployment. The state of the global economy has become severe enough for financial writers and analysts to express fears of a looming second Great Depression.

But if we’re to believe the Chair of the Federal Reserve, we need not be concerned about a current increase in the rate of inflation. Janet Yellen has got our back.
 
In a recent speech at the Stanford Institute for Economic Policy Research, she assured us that even if the labor market strengthens as the economy grows, gross domestic product (GDP) is still being inhibited by “a variety of forces.”
 
In Yellen’s words:
 
“Although I am cautiously optimistic that some of these forces will abate over time, I anticipate that they will continue to restrain overall growth over the medium term, likely holding down the level of interest rates consistent with stable labor market conditions ….”
 
Under the circumstances, the Fed Chair is committed to vigilance. After all, such a commitment comes with the job. Although the Fed has three rate increases scheduled for 2017, Yellen assures us the central bank will administer these carefully, if at all.
 
How does all this portend for gold? With rate increases a definite maybe, the fear that investors will abandon an investment in the yellow metal for interest-bearing investments in any grand way seems premature.
 
In the meantime, we’re still faced with the possibility that newly elected President Trump could help drive up inflation rates with his ambitious plans to rebuild the nation’s infrastructure and gut its entitlement programs.
 
Not to accept this possibility is the investor’s equivalent of getting caught napping. Currently, gold hovers at the spot price of $1,220, $20.00 above its psychological support price. If you act now, and hedge your stocks against the possibility of a crash, you stand to provide your retirement account with safe and profitable protection.
 
For more information request your free guide now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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