I just followed Peter Schiff’s comments and saw that he again warned about a rather tense situation in the economy. What he emphasized is the contradiction between two indicators: GDP has slowed significantly to 1.4% from 4.4% previously, while the Chi tiêu Tiêu dùng Cá nhân index is still rising by 0.4% month-over-month.

This is truly quite concerning because it shows a very contradictory economic picture. Economic growth is stalling, but inflation will not come down. Schiff calls this stagflation—that is, a situation where inflation comes with stagnation, a scenario in which the economy both slows down and faces price pressures.

Looking at these figures, I also notice that something is not right. If GDP slows but inflation remains high, monetary policy will end up in a difficult position. Raising interest rates could further damage growth, but if they aren’t raised, inflation will continue to exert pressure. This is exactly the stagflation scenario that economists fear most. Anyone interested in financial markets should pay attention to these developments.