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America's Debt Tipping Point: Stagflation Ahead!

What’s Really Happening Under the Hood of Our Economy 

Last month, the American service sector restaurants, doctors, schools hit a near standstill. The Institute for Supply Management Services Index dropped to 50.1, barely clinging to the line that separates growth from contraction. 

Even more troubling, the jobs component fell to 46.4, while continuing jobless claims surged to the highest level since 2021. And what was happening then? COVID. The message is clear: firms are not hiring, they’re cutting back, and the economic engine is slowing. 

Manufacturing Orders Collapse 

Orders for big-ticket items have plunged. In June, durable goods orders fell 9.3 percent, driven by a 22.4 percent drop in transport equipment and a staggering 51.8 percent crash in aircraft parts. Excluding airplanes, new orders barely moved. 

In plain English, businesses aren’t ordering the machines and tools they need to grow because there is no growth. 

At the same time, more Americans are filing for unemployment, with claims climbing to levels not seen since late 2021. Back then we were in a COVID crisis. Now, we’re not and that makes today’s weakness even more alarming. 

Debt Explosion and Rising Delinquencies 

US household debt jumped by $185 billion this spring alone, pushing the total past $18.4 trillion. Student loan delinquencies spiked nearly 13 percent, higher than any time since reporting resumed in 2020. Credit card and auto loan delinquencies are rising too, especially among middle- and upper-income households. 

Economists warn this debt stress makes the nation fragile to any new shock, whether it’s a housing slowdown or higher interest rates. Families already struggling to find work are now struggling to keep up with bills. And when the jobs picture cools, families spend less further weakening the economy. 

The Fed’s Stagflation Balancing Act 

So what about the Federal Reserve? Rates may be cut as early as September, but that will only ignite more inflation. Tariffs push prices higher. Job growth is slowing. This is why economists are warning about stagflation when inflation and unemployment rise together. 

The Fed is trying to strike a balance between its dual mandate of employment and price stability. But let’s be honest: they’ve never gotten it right before. Are they getting it right now? Probably not. 

Protecting Wealth with Gold, Silver, and Community 

So, what do you do when the car engine sputters and the road ahead looks rough? 

You prepare. You strengthen your position. You build community. 

Wall Street wants you to believe paper gold (like GLD) is as good as holding the real thing, but it isn’t. If you don’t hold it, you don’t own it. Physical gold and silver are the tangible assets that serve as the fuel in your family’s vehicle through uncertain times. 

Zang Enterprises’ layered sound money strategies are designed to help you: 

  • Sustain your current standard of living with cash and barterable gold and silver 
  • Preserve the wealth you’ve worked hard to accumulate 
  • Position yourself to take advantage of opportunities during crisis 
  • Build resilience through strong community connections 

Community matters. Neighbors helping neighbors is how societies weather crises. Just like when Lynette Zang was growing up every summer, one house in her neighborhood would run out of well water, and hoses from every home connected to help. That’s how people survived and thrived together. 

Today, that means going to farmers markets, supporting community gardens, sharing skills, and creating local resilience. Food, water, energy, security, barter ability, wealth preservation, community, and shelter these are the pillars of true financial freedom. 

And make no mistake: when one currency dies, another rises to take its place. The framework for a new system is already legalized through stablecoins. Hyperinflation is not a question of “if,” but “when.” 

 

Final Thoughts 

The U.S. economy is slowing, debt is exploding, and households are increasingly fragile. The Federal Reserve is walking a tightrope it has never successfully crossed before. Now is the time to prepare. 

Physical gold, silver, and community resilience are not luxuries they are necessities for wealth preservation and financial freedom in times of economic collapse and hyperinflation. 

At Zang Enterprises, we empower families to take control of their financial future with sound money strategies rooted in tangible assets. Don’t wait for the system to fail you. Build your resilience today. 

Learn more about Zang Enterprises’ sound money strategies and how to prepare with physical gold and silver. Your wealth. Your freedom. Your future.