I just read a rather concerning analysis about the current state of the economy. Peter Schiff is warning about something many might be overlooking: clear signs of stagflation that are intensifying.

The interesting thing is that the numbers speak for themselves. GDP growth has dropped dramatically, from 4.4% to just 1.4%. That’s a serious slowdown that cannot be ignored. But here’s the worrying part: while the economy slows down, inflation continues to pressure. The PCE index rose 0.4% just last month, meaning prices keep rising even as growth stalls.

This is exactly the stagflation scenario that has been discussed for some time. It’s that uncomfortable combination where persistent inflation coexists with weak economic growth. It’s not a classic recession, but it’s not expansion either. It’s that economic limbo that complicates everything.

What Schiff is pointing out is that these stagflation pressures are likely to intensify if there are no significant changes. When you see such low GDP and inflation that refuses to ease, you start to understand why markets are nervous. Stagflation is the worst-case scenario for investors because there’s no clear escape: neither growth to gain from nor deflation to seek refuge in.

It’s definitely something worth closely monitoring in the coming months.