The Consumer Is Starting To Fail, Increasing Recession Risk

Consumer spending powers the economy, making up 68% of GDP here in the US.

And, like it or not, much of that consumer spending is funded by debt — credit cards, mortgages, auto loans, etc.

But rising interest rates are now starting to make the cost of that debt more expensive.

That trend, combined with increases in the cost of living caused by today’s spiking inflation, is pinching folks’ ability to borrow and spend.

We’re seeing more and more signs

that the consumer is starting to tap out.

And should that happen, the risk of recession grows substantially.

To understand why & what to do about it, watch this new 12-minute explainer video.

James Grant: Interest Rates Need To Go MUCH Higher To Tame Inflation

Few people understand interest rates as well as James Grant.

It’s one of the reasons why he’s so respected on Wall Street by bulls and bears alike.

And he says we’ve never seen an environment like the one we’re currently in now; when interest rates remain near record lows and inflation is running at 40+ year highs.

As Jim puts it: “It’s a wild time in money” right now.

In this video, originally aired at Wealthion’s online conference, Jim explains why today’s macro environment is so treacherous — and then offers up several assets he thinks today’s investor would do well to consider.

To hear the recommendations of this living legend of finance, watch this video discussion with the truly excellent James Grant