* On October 14, 2022, the Bureau of Labor Statistics (BLS) reported     that the Producer Price Index (PPI) increased 0.4 percent in September after falling 0.1 percent in August and 0.5 percent in July. The PPI advanced to an annual 8.5 percent rate in September. In September, gasoline prices started to take off again, hitting   $3.77 for the week of October 24, with more increases on the way. The 99-day streak   of gasoline price declines from mid-June to September 20 is likely soon to be a distant memory. Gasoline prices, however, are down from the June record of $5.03 per gallon.

* The next day, on October 13, 2022, the U.S. Bureau of Labor Statistics (BLS) reported   that the Consumer Price Index (CPI) rose 0.4 percent in September after rising 0.1 percent in August and remaining unchanged in July. This increase in August slightly slowed the annual inflation pace to 8.2 percent in September, twice the expected amount. The September CPI revealed   a shocking 8.2 percent year-to-year inflation rate, the highest in 40 years.

Last Month of Trump
March 20, 2022
The Month of Biden Mid-Term Election:
November 2022
1.5% inflation rate Inflation Rate
8.2% inflation rate
$2.12for a gallon of regular gasoline Gasoline Prices    $3.77 for a gallon of regular gasoline
3.65% average 30-year mortgage rate 30-Year Mortgage Rate    7.08% average 30-year mortgage rate
median national rent expense
Average Rent Prices    $2,002/month
median national rent expense
3.4% annual increase in CPI food index for 2020 Percent Change in CPI Food Index
2020 vs. 2022   
Estimated 9.5% to 10.5% annual increase in CPI food index for 2020
$0.134/KWH CPI Average Price Data for Electricity Costs per Kilowatt Hour
Increased 7.5% for the year ending April 2020    Real Median Household Income in the United States Decreased by 2.8% from August 2021 to August 2022   
2020 DJIA returned 6.7% in 2020.
Including dividend reinvestment, the DJIA returned 9.7% in 2020   
Dow Jones Industrial (DJIA)
Gain or Loss
DJIA from 12/03/2022 (closing price 36,585) to 10/28/2022 (closing price 32,861) has lost 9.5%   

Swiss America
Gold and Silver Investing

For those who adhere to the investment adage, “Buy Low, Sell High,” the Biden administration appears to be serving up a rare opportunity to buy gold and silver when precious metal prices are down from previous year highs and positioned for an historic advance.

In a weird rush of déjà vu, we can easily imagine we have returned to the presidency of Jimmy Carter, experiencing once again the bizarre phenomenon of stagflation.  Like what happened in the late 1970s, today’s economy is stalling while prices go through the roof.  Finally, Federal Reserve chairman Jerome Powell has admitted that inflation today is not a temporary phenomenon caused by the economy starting up again.  

Inflation in the United States has rapidly moved into double digits, close to the rarified high altitude of 14.8 percent that marked the top of the Carter era hyperinflation.  In 1979, then-Fed Chair Paul Volcker placed a lid on the money supply, raising interest rates to a peak of 20 percent in June 1981 and driving inflation down from a high of 14.8 percent in March 1980 to 2.5 percent three years later.  The pain of Volcker’s decisive moves was that the U.S. economy suffered two punishing recessions.  

The Biden administration’s penchant under the “Inflation Reduction Act” to spend another trillion dollars in Modern Monetary Theory deficit spending suggests we are not yet at the height of this new, increasingly painful round of hyperinflation.  To make matters worse, with the escalating costs of energy and food pounding the middle class, the United States has entered another recessionary period of stagnant economic growth. 

I first began working with Craig R. Smith, the Chairman Emeritus of Swiss America Trading Corporation in 2005, when we co-authored Black Gold Stranglehold: The Myth of Scarcity and the Politics of Oil – a bestselling book that continues to sell briskly even today, nearly 20 years after Craig and I first met.  On every website I have created since 2004, including this one, I have been honored to represent Swiss America.  Since 1982, Swiss America has advised clients to diversify at least a small portion of their assets in U.S. gold and silver coins for these four reasons: (1.) Liquidity, (2) Safety, (3) Profit Potential, and (4) Privacy of Ownership … in that order. 

The fundamentals for gold and silver investing have never looked better.  As the Biden administration continues to spend trillions of dollars, the move is on in the United States – as well as internationally – to “de-dollarize,” a move that has once again enhanced the value of gold and silver as long-term investment assets capable of holding value.  Precious metals also hedge against devaluations in national currencies and the faltering of cryptocurrencies amid an increasingly expected return globally to the stagflation of the late 1970s. 
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