We’re returning to the ‘70s era of social decay, crime, and stagflation – Scott Rothbort (Pt. 1/2)

The most dangerous part of the recently released 4.2% headline inflation, the highest since 2008, is the fact that higher labor costs haven’t even kicked in yet, said Scott Rothbort, president of LakeView Asset Management.

Rothbort said that the economy is headed to a situation where we will have much higher inflation but low economic growth, a condition known as stagflation that was prevalent in the 1970s.

“There are two elements to inflation. You’ve got the cost element, and that comes from commodities and input prices, and you’ve got the wage element, and that comes from labor demanding more wages. What we saw in the 1970s was that it became a vicious feedback cycle,” Rothbort told Kitco’s anchor, David Lin.

The end result of this vicious feedback cycle is that small businesses, which on an aggregate level contribute to about 50% of America’s GDP, will be unable to afford paying much higher wages and thus cut staff, increasing unemployment even more.

0:00 – Higher labor costs will come
9:14 – Higher unemployment
18:05 – How high can inflation rise?

__________________________________________________________________
Kitco News is the world’s #1 source of metals market information. Our videos feature interviews with prominent industry figures to bring you market-affecting insights, with the goal of helping people make informed investment decisions.

Subscribe to our channel to stay up to date on the latest insights moving the metals markets.

For more breaking news, visit http://www.kitco.com/

Follow us on social media:
Facebook – https://www.facebook.com/KitcoNews/?ref=br_rs
Twitter – https://twitter.com/kitconewsnow
StockTwits – https://stocktwits.com/kitconews

Live gold price and charts: http://www.kitco.com/gold-price-today-usa/
Live silver price and charts: http://www.kitco.com/silver-price-today-usa/

Don’t forget to sign up for Kitco News’ Weekly Roundup – comes out every Friday to recap the hottest stories & videos of the week: https://connect.kitco.com/subscription/newsletter.html

Join the conversation @ The Kitco Forums and be part of the premier online community for precious metals investors: https://gold-forum.kitco.com/


Disclaimer: Videos are not trading advice and the views expressed may not reflect those of Kitco Metals Inc.

Gold Bullion Dealers – Helping You Buy What You Want

Gold bullion dealers can help you find the type and quantity of gold you desire. Today many people are investing in gold bullion may it be coins or bars. People are investing in precious metal because they can be a big help in times of crisis.

Gold Bullion Depository – Keeping It Extra Safe

Many people like to invest in gold bullion either in coins or in bars form. And, most of the people who invest in gold bullion do so in a small quantity. They just want it for collection purposes or just a small starting investment for the future.

Gold Bullion Fraud – How Not To Fall Victim

Gold bullion fraud does exist. Gold bullion is a precious metal and one should be careful with it when you want to invest in it. In every aspect, either in investing or selling, there is always fraud. Although, people who do this kind of work are none other than what can be called criminals or scammers.

Why Invest In Silver And Gold Coins?

Each discerning investor today worries about what they presently see in the world: Reoccurring domestic and international strife, declining US dollar value, increasing terrorism and lots of other factors are eating away your nest egg. Now the bond, real estate and stock markets also appear to be immensely overvalued. Add to this the inflation thread, depression and recession, and you can easily see that time ahead could be tougher than you could imagine.

3 Great Investments in Silver

I have a liking for silver as it costs much less as compared to the gold and possesses a greater potential to afford me the higher returns in comparison to the gold. The nice thing here is that markets for both of these are correlated positively.

Coins As Mode of Silver Investment

For few people, making investment in the coins is just a hobby. They enjoy possessing these coins which are an in-separable part of our rich cultural heritage, or some coins which offer insight into other countries of the world.

Opportunities in the Silver Investment

One of the easiest and common method of investing in the silver is by buying silver bullion bars. These bars come in the various sizes between 1-1000 ounces and many countries now permit investors to buy bars of silver from over counter from many high street banks. These bars are kept with the dealers or safes at home after the purchase.

Making Investments in Gold and Silver

Precious metals like gold and silver have always been preferred at both national and individual level for variety of reasons. Firstly, if we see these metals have been associated with the power and wealth. Secondly, they have remained as indestructible medium of international currency which is least effect by the social or economic turmoil.

Methods Of Investment In the Silver

There are many methods of making the investments in the silver. If you have interest in the silver investing, you should gain familiarity with these investing methods. This would guarantee you maximum returns on the investment you make in the silver.

The Significance of Maintaining Transparency on Buying Price of Gold

People sell their gold online only for one reason. They want to earn cash on their sale.