President Joe Biden’s economic policies are proving to be even more disastrous than first thought, as the federal government’s own figures indicate.
In the first quarter, the U.S. economy grew by paltry 1.1 percent, a decrease from a still-measly 2.6 percent growth seen in the fourth quarter, as per the Bureau of Economic Analysis (BEA). The growth rate also fell short of the anticipated 2 percent as projected by economists, The Epoch Times reported.
“This was the slowest quarterly growth since the second quarter of 2022,” the outlet continued.
Over the past year, the Federal Reserve has raised interest rates, resulting in an increase of the benchmark Fed funds rate by 475 basis points, the highest level since late 2007, but it should be noted that the Fed had to raise rates in order to combat the massive inflation caused by massive Democratic spending bills that Biden signed, adding massive amounts to the national debt.
Currently, the target range stands at 4.75-5.00 percent. According to the CME FedWatch Tool, investors anticipate the Federal Open Market Committee to raise rates by another 25 basis points at the upcoming policy meeting next month. The rising-rate environment has caused borrowing to become more expensive, making it challenging for businesses and consumers to manage with the already heightened inflation.
And the inflationary cycle isn’t done, apparently.
The latest quarter brought a surprising surge in inflation for market observers. The GDP Price Index, which measures the prices of goods and services produced in the United States, unexpectedly increased to 4 percent during the first three months of 2023. That marks an increase from the previous quarter’s 3.9 percent and exceeds the market’s predicted rate of 3.7 percent, The Epoch Times noted.
“Unfortunately, the sharp slowdown in economic growth last quarter was not sufficient to temper price inflation,” Scott Anderson, chief economist at the Bank of the West Economics, wrote in an investor’s note. “Despite weakening growth and the elevated probability of a mild U.S. recession on the horizon, we believe persistent core price inflation will prompt the Fed to raise interest rates by another quarter percentage point next month before an extended pause.”
During the first quarter, there was a significant rise in the personal consumption expenditure (PCE) price index, increasing from 3.7 percent to 4.2 percent. The observed rate was much higher than the anticipated 0.5 percent. Similarly, the core PCE price index, which does not include the volatile food and energy sectors, climbed to 4.9 percent.
In the first quarter, the GDP Sales Index, which calculates the goods and services produced for sale in the national economy, surged to 3.4 percent, surpassing the market’s predicted rate of 2.3 percent. The observed growth was also higher than the 1.1 percent increase in the fourth quarter.
The expansion in the real gross domestic product (GDP) was primarily driven by increased consumer and government spending, as well as exports. However, this was offset by declines in private inventory investment and residential fixed investment, the news outlet noted further.
Quarter-over-quarter, real consumer spending surged by 3.7 percent, compared to 1 percent previously. Despite a strong start to the year, Morning Consult’s chief economist John Lee highlighted that “the consumer ended the quarter on a sour note, calling into question the sustainability of economic growth moving forward.”
“While private investment may pick back up later this year, it tends to be highly volatile from quarter to quarter,” he told the Times in an email. “Without a robust consumer, we’re likely to see more volatility and uncertainty in economic activity through the end of the year.”
“The economy’s biggest problem now is inflation, a direct result of the government’s COVID-related stimulus. The price of stimulus today is always a slowdown tomorrow, and now it’s tomorrow,” added Ryan Young, senior economist at the Competitive Enterprise Institute, in an email.
“Trillions of dollars of stimulus spending and money creation caused the inflation that the Federal Reserve is still struggling to bring down. Rising interest rates are a necessary part of that effort, but they are a major reason why GDP growth is only about half what it should be. Stimulus is never free,” he added.
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Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
