Inflation is Here to Stay- U.S. Money Reserve Market Insights

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Apr 10, 2018

Watch and listen to U.S. Money Reserve's Coy Wells talk about current events and how inflation has become an issue we are seeing in our every day lives such as at the grocery store and at the gas pump.

Inflation is Here to Stay- Video Transcription

Coy Wells:               00:00
Good morning and thank you for watching daily market insights. Again folks here we are watching everything that's unfolding on national television and just about everything we've talked about over the course of the past few months is continuing to happen. Now we're starting to see an increase in trade wars or the worlds trade war taking place between the United States and China. Uh, and there's a lot of stuff that's also taking place that we've talked about in the past. One of those items that we've talked about in the past is inflation. And the reason I want to talk about inflation today, this morning I was at a local grocery store. I was there at about six o'clock in the morning and there was employees putting stuff on the shelves, stocking the counters and I grabbed my stuff that I needed. I was going up to the counter, was checking out, and there was a young lady that was a stocker at the counter.
Coy Wells:               00:39
She was buying a soda water, she was buying a Coca Cola. And uh, the young lady that was the teller was talking to her, visiting about how the morning was. And the two women were having a conversation about how things were costing more and it reminded me of the things that we'd been talking about in the segments in the past. She was talking about how a few months ago the Coca Cola that the young lady that was buying, the other employee, was only a dollar and how they had raised the prices to a dollar and 88 for a Coca Cola. Now this is a major grocery store. This is one of the largest grocery stores in the country, and they're talking about a soda water going to the price point of a dollar 88. This weekend, if you were watching national television, the price of gasoline has also creeped up as well. These are some of the causes and effects that we've talked about over the course of the past year.
Coy Wells:               01:25
We've talked about treasury bonds, we talked about interest rates, and we've talked about inflation, and we've talked about US dollar. What happens here as an individual, it's very important for you to understand the correlation between the u.s. Dollar and inflation. As the value of the dollar decreases, goes down in value, the companies and corporations start increasing the price of their services and goods as they makeup for the difference, the difference that they're losing on the price point of the value of the dollar. If you're watching Donald Trump on national television today, he's talking about how the tariffs are going to hurt or how he's being questioned about how it's going to hurt the farmers and ranchers here in the United States and his comment is we're going to make up that ground work. It's going to be difficult to make up that ground work. Unfortunately, here in the United States, when the u s dollars starts losing what it has already lost, which was sitting about 89 cents the other day.
Coy Wells:               02:11
It's going to be difficult for those who are farmers and ranchers who directly work with the commodities such as corn, cotton, wheat, soybeans, uh, livestock, pork, chickens, eggs, milk. All of that's going to cost you more at the grocery store. So expect that to happen in the very near future. There is a correlation between all of it and it's important to understand how it will all take place. The other thing you have to take in mind, in the year of 2000, in 1999 going into 2000, you saw an erratic behavior in the stock market exactly like you're seeing today. 2007 through 2008 you saw an erratic behavior in the stock market. Today you're seeing erratic behavior in the stock market. You're having seeing swings from a negative 700 to a positive by day end, you're seeing it positive in the morning and then negative by day end, these are the same things that take place.
Coy Wells:               03:00
And if you also remember and hopefully this isn't something that we lead into. In 1999 going to 2000 we had the Gulf war, going into 2008 we had the Afghanistan war and now today we're also seeing the tension between the United States and North Korea, and now you saw the bombing in Syria. So these are major issues that are geopolitical and things that are taking place here in United States. So be ultra cautious and watch what your money's doing. If you have money in the stock market, I would highly encourage you to be reactive and not proactive and that was the mistake that most of you that had money in the market in a way got affected by. You were reactive, not being proactive and when inflation starts setting in and interest rates start rising. One of the key elements that most consumers move their money into, especially those who have large amounts of money, they start transferring into gold.
Coy Wells:               03:47
The banks are buying gold right now and if the banks are buying gold, that means they're ultra concerned about the economy as well. And if they're buying gold, it's probably something you ought to be start considering to acquire as well. As always, thank you for watching daily market insights. We hope that the information today was helpful, but look at the small key elements that are surrounding you financially. Another key tool, and another thing that turning its head up, which is a signal any sign that the economy is struggling, is that the pension plans inside the United States and we talked about that this at the end of every segment, but the Fiscal States of America, this is what I tell you how the pension plans inside of the United States are struggling and how we are now starting to see municipalities and states win judgments in the courthouse in rulings to take over those pension plans. We've already seen two states, uh, take action. They've won those lawsuits. If two states have won, most likely these other states are going is win as well. We saw it in Chicago, uh, when it happened many years ago, about five years ago. As always, thank you for watching daily market insights. Click on the link below or send us a comment in the comment section and we'll get back to you as promptly as we can. Thank you.


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