Will we see a slowdown in the inflation rate and another uptick like in the 70s?

The BRICS nations were initially comprised of Brazil, Russia, India, China, and South Africa.

The addition of Egypt, Ethiopia, Argentina, Iran, and the United Arab Emirates, many believe, makes this group of countries more powerful than the G-20 because of the inclusion of major oil producers. This may be part of the reason that China and Russia did not participate in this weekend’s G-20 activities in India.

Saudi Arabia announced that they would continue their 1 mil barrel-a-day production cut initially announced in July. They and other OPEC nations (including Iran) have successfully driven the price of Oil up to new 52-week highs in 2023.

More damaging is the prospect that higher oil prices will not only keep interest rates high but probably force the Fed to take rates to 6% or higher as they try to balance steady growth with an uptick in inflation.

Inflation would likely slow and then experience an uptick, similar to what happened in the 70s. While the economy is on a steady growth trajectory, it is vulnerable to slowing dramatically as we enter 2024.

STAGFLATION may begin to creep in with its insidious consequences. We must remember that next year is an election year, and this administration will DO everything to keep the economy out of a recession. That would be unpopular and likely cost them the White House.

The SPR (Strategic Petroleum Reserves, which were used by the Government in 2021-2022 to try and lower oil prices), is the lowest level of total crude inventories in America since 1985. This is very dangerous for a nation depending on oil and oil-related products.