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'Get out your bell bottoms and your disco records' - Erfle on stagflation

Michael McCrae

Kitco News

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A second bad jobs report along with spiking energy prices is hinting at stagflation, said Junior Miner Junky editor David Erfle.

On Friday Erfle recorded Kitco Roundtable with Mining Audiences Manager Michael McCrae, Kitco correspondent Paul Harris and editor Neils Christensen.

The job's report for September was dismal with only 194,000 jobs added last month. The forecast was for a much higher number, ranging from 450,000 to 500,000 new jobs. The preceding August jobs report was also a disappointment.

While the jobs report could point to a soft economy, some commodity prices are spiking, notably oil. Reuters reported that Brent crude hit $83.47 a barrel on Wednesday, the highest price for oil since October 2018. A soft economy and inflation are markers of stagflation, which harkens back to the oil shocks of the '70s.

"Get out your bell bottoms and your disco records, because that word 'stagflation' is coming back," said Erfle.

By Michael McCrae

For Kitco News

Contact mmccrae@kitco.com
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