“Quantitative easing is important but if that quantitative easing gets in the money, watch out.”
Wharton professor Jeremy Siegel predicts that inflation can visit 20% and even up to 25% levels.
If anything above 2% is considered to be high inflation, then the next few years will continue to be rocky to say the least.
“I never predicted inflation from the quantitative easing of [Former Federal Reserve Chair] Ben Bernanke, but I am predicting inflation from the quantitative easing that Jerome Powell and the Federal Reserve is doing now.”
At the recently assembled wealth manager Forbes/SHOOK Top Advisor Summit in Las Vegas,
Siegel shared his belief and reasoning behind why he saw inflation hitting double-digit numbers in the near future.
Unfortunately to Jeremy, this doesn’t come as a surprise since he has been discounting Fed Chairman Jerome Powell’s belief about inflation being transitory.
Alongside Siegel are other economists who also believe that today’s high rate of inflation isn’t tied solely to supply-chain bottlenecks.
We’re currently in the midst of a great demand for goods with the world not set up to deliver on the supply side.
For most, this foreshadowing could be seen as early as a month or two into the pandemic when the economy came to a screeching halt led by way of job furloughs.
Sure, shutting the economy down took no more than a flip of a button, but getting it to get back going has proven to be much more of a task than anyone predicted.
Job hiring signs all over prove it; there is a job supply overgrowth and not enough people to fill that demand.
It’s a total opposite from the usual of having more working bodies than there are available jobs.
Due to this, we have seen a squeeze on all things consumer issues, from shipping logjams at major ports to empty shelves and higher prices.
Siegel expects the first signs of excessive inflation to show itself around the fourth quarter of 2021 and attributes the disconnect between his analysis and that of the Fed to data provided by the Bureau of Labor Statistics and other government agencies.
“There’s going to be pressure on the Fed to accelerate its taper process,’” he said.
“I do not believe that the market is prepared for an accelerated taper.”
Historically, gold has built a solid performance in these exact times.
Jeremy Siegel is bullish on gold, too. He believes it has become relatively cheap as an inflation hedge and recalls the inflation of the 70s when everyone turned to gold.
When inflation runs high and economic turmoil spreads, gold has been the turn to asset savvy Americans flock to in order to protect their wealth.
Call American Hartford Gold today at 800-462-0071 to learn how thousands of Americans are protecting their wealth and retirement with assets like gold.