Name: Why All Millionaires Are Preparing for a Stagflation
Uploaded: 2026-03-08T18:01:32.000Z
Duration: 19 min 58 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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The US Economy is preparing to get into a stagflation.

The comparative

And a stagflation is way worse than a recession.

Past simple

Last time the US economy went into a stagflation, it lasted for more than 10 years.

And a stagflation usually crushes the economy.

Because this is the situation where the economy is not growing, which means that your wages are stagnant, but

So a 10 years of stagflation is instantly turns into a complete catastrophe for any economy.

Now this is usually how the economy works.

And that is a healthy sign of a healthy economy.

Because when prices are rising, that means that people have jobs, people have paychecks, they are spending money.

And because they are spending money, prices are growing.

And because prices are growing, the GDP is growing.

So overall you want to see some kind of an increase in prices.

But if that increase in prices is actually being pushed by a real demand, the real problem comes is that when prices are rising but the economy is not growing, can something like that happen?

Well, it has already happened historically in the United States when you see around and the price of everything is continuously keeping rising.

And why your income is not growing because the overall economy is not growing.

Or maybe prices are simply rising way faster than the real size of the economy.

Last time the United States experienced something like that was during 1960s and 1970s.

So the United States in 1971 abandons the gold standard and the US dollar instantly loses a lot of its value.

Suddenly the price of gold shoots to the roof.

Now if you are back in 1970s, do you think that your employer called you and told you listen, just because the prices have risen, we decided that we are going to grow your paycheck.

wages didn't rise much price because prices did not rise as a result of a healthy demand.

But prices have risen because there has been a lot of devaluation of the dollar.

But abandoning the gold standard simply was one of many reasons why we had a stagflation.

So there was a crisis in the Middle East.

And Middle Eastern countries, who were the largest oil exporters in the world, decided that we're not going to sell oil to anybody because is going to support Israel in the war that was happening in Middle East.

Suddenly oil prices shot to the roof, which means that the cost of everything was driven higher.

So when you go to the grocery store and you buy something, that something is in your grocery store because it was moved from one place into another.

It might have originated from outside the United States.

So there is always a transportation cost.

When oil prices rise, the cost of transportation instantly rises, which means that there is inflation.

Now the question is, did prices rise because there has been a healthy demand or prices rose just because the cost of delivering that good to your house has just risen?

The United States has been engaged in a very destructive war in Vietnam.

That war has been so huge that the United States had to deplete a lot of its resources.

You are spending so much time and you are producing a weapon.

Let's say that you have produced a missile.

Now this missile goes into a war and it explodes.

So basically, we are working so hard manufacturing stuff that are going to be devastated anyways.

So we're basically working super hard, but

we're not growing the economy because we're basically destroying what we have built.

And the war in Vietnam has lasted for about 15 years, which is why it caused an increase in prices, but

the real size of the economy did not grow.

Now, a deficit is inflationary by itself.

A deficit means that you are basically borrowing money because you cannot possibly afford it.

When you cannot possibly afford your lifestyle and you get yourself a paycheck or you go, you get yourself an auto loan or a mortgage to buy a house, it is not necessarily inflationary because you are not the one who is actually creating the dollars.

Now put yourself in the shoes of the US Government and you have basically ability to create money.

So you cannot possibly borrow dollars from somebody.

It is you who is the source of the dollar.

So when the US Government actually borrows money, the Federal Reserve usually prints money out of nothing.

So because the government is running a deficit, the supply of dollars is rising the economy.

So when too many dollars are chasing the exact same amount of goods in the economy, prices are rising.

Do you think prices have risen because the real size of the economy is growing, because we became more productive, or because there are simply too many dollars in the economy?

So a huge deficit always causes a lot of inflation, which leads the economy to a stagflation.

And finally, there has been a lot of competition from Germany and Japan.

So if you just zoom out and you look at the US Economy from a further perspective, you can see that from 1945 to 1970, the United States was this country that was basically manufacturing everything.

So if you wanted the most advanced cars, you will buy them from the US if you wanted the most advanced machinery, you will buy them from the US Because Europe was distracted as a result of World War II, Japan was devastated.

But starting from 1960s, Germany and Japan emerged as the countries that could compete with the United States when it comes to manufacturing.

So suddenly jobs started getting out of the United States because manufacturing jobs that were going back to other nations such as Japan and Germany.

In fact, Japan was so fast at reconstructing its economy and competing with the United States that Japan literally won over the US Market.

And the US Car manufacturers could not even compete with Japan.

So the US Economy basically stopped growing at the rate that it had before Japan was rising.

And these reasons basically caused prices to rise dramatically and there was a huge slowdown in the US economy.

And now let's come back to 2026 and you will see that the exact same story is playing back.

Oil prices have gone from less than $50 to almost a hundred dollars.

And this is just one week of a war in Iran.

This price could easily go to 100%, maybe 200%.

So now you have to ask yourself a question.

How will oil prices keep impacting the global inflation?

Especially the inflation in the U.S. so going back to 1970s, there has been an oil shock.

So it led to higher oil prices which led to higher inflation.

And this time it is not going to be any different.

Now you could make the argument that the United States is self sufficient when it comes to oil.

Because if you just look at the list of the largest oil producers in the world, you'll see the United States at the top of the list.

But the oil market is just one joint market.

So if global oil prices rise, the US Oil prices are going to rise.

So suddenly you're going to have a lot of inflation.

Now the second thing is that now there is a war in Middle east which is the main reason why there is an increase in oil prices.

Oil prices are usually driven by futures.

So just because there is a war, it doesn't mean that suddenly everybody's massively buying oil because it is impossible to buy that much oil.

Because oil is a very difficult commodity.

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Why All Millionaires Are Preparing for a Stagflation

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