Banks Issue Bleak Economic Predictions for the United States


Stagflation, massive underemployment, unaffordable housing, 30 trillion dollars of debt, out-of-control deficit spending, stagnant wages, wrecked trade relationships. And they wonder why people fear recession or stagflation will hit the US.


As the Federal Reserve tightens monetary policy to attempt to surge inflation, Bank of America (BofA) warned on Friday that the US faces a recession next year.

“Inflation shock worsening, rates shock just beginning, recession shock coming,” BofA’s chief investment strategist, Michael Hartnett, wrote in a weekly note to clients, seen by Reuters. He added that in this context, cash, volatility, commodities, and cryptocurrencies could outperform bonds and stocks.

JPMorgan’s chief executive, Jamie Dimon, said this week in his annual letter to shareholders that the combination of inflation, the conflict in Ukraine, and sanctions against Russia may “dramatically increase risks ahead” for the US.

Dimon warns of unpredictable consequences for the nation’s economy.

Dems ignored Larry Summers warnings that their $2T spending spree cld result in inflation “not seen in a generation” Now according to Summers interest rate hikes necessary 2control inflation risks leading to “stagflation..&ultimately a major recession” thx 2 Biden fiscal insanity.

~ Chuck Grassley tweet


On Wednesday, the Federal Reserve stated that it plans to reduce its balance sheet. Investors expect the regulator to hike its key interest rate by 50 basis points at its next meeting in early May.

The inflation rate for February was 7.9%, although its actually higher if the US used the same standard used in the 1980s. March is expected to be higher. In order to use interest rates to curb inflation, the Feds would have to raise the rates higher than the inflation rate. That would kill the economy.

The Feds are talking aren’t talking about raising the rates anywhere high enough. They can’t.

Peter Schiff said the rate hikes won’t do a thing, Zero Hedge reports:
Their inconsequential, tiny rate hikes are going to do anything. In fact, the only reason they’re raising rates at all is to pretend they can keep on doing it. But at some point, they will reverse course because the bond market has that right. These higher rates are going to cause a recession, and it’s not going to take that many hikes to push the economy into recession given how addicted the economy is and how overleveraged the economy is. So, once the impact on the economy and on the financial markets is felt, then the Fed is going to give up all the tough talk and inflation is going to continue to get worse.

Fox Business reports The Economist Intelligence Unit stated the “outlook for the US economy is looking bleaker.”

“The economic fallout from the war and other external factors, such as the emergence of a new coronavirus variant (which remains our baseline scenario), expose the U.S. to the growing risk of stagflation – low growth combined with high inflation,” according to one analyst.

Stagflation is the combination of economic stagnation and high inflation, characterized by soaring consumer prices as well as high unemployment.

Stagflation savaged the economy from the 1970s to about 1982.

The rising price of oil is also pushing inflation but the Biden team will not take the jackboot off the oil, gas, and coal industry.

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2 months ago

‘Stagflation, massive underemployment, unaffordable housing, 30 trillion dollars of debt, out-of-control deficit spending, stagnant wages, wrecked trade relationships.’ All this brought to you primarily by the Democrat Party with the help of RINOs.

2 months ago

I’ve never found Schiff to be accurate in his analysis. It’s typical when circumstances arise that create economic problems he is quoted as if he predicted it all along. Too many forget all his past predictions that failed miserably. Sooner or later a downturn will occur and here he comes again.

It’s indirectly related to the money supply because of all the Covid spending, which could never be managed properly by such a gigantic bureaucracy. I doubt very little was spent properly and therefore very ineffective. This was one of the dumbest things Trump ever did, spending such huge amounts.

What was the point in giving so much in unemployment benefits. Graham came out and vociferously complained how that would negatively affect the economy, yet he voted for it anyway. That is one of the primary reasons we haven’t begun a recovery after Covid. Now we have a situation of many getting paid without adding to the GDP. It’s can be considered a double negative effect. What used to be 24/7 business have turned into essentially 40 hour a week business because of a lack of employees. Trump made the mistake of doubling-down on the spending, thus exacerbating the problem.

I said from the very beginning, when the shutdown was conceived, that it would create a long-term logistics problem. It seems to few realize what it takes to produce a product from the resource material to a customer shelf. It’s quite easy to understand by Milton Friedman’s lesson, from long ago, about the economics of a “pencil“. To fully understand that lesson is to understand how fragile a world-wide economic system is to disruption.

Then we have Ukraine and ignorant, stupid, callous, shameful sanctions imposed by the West, all for the purpose of attempting to destroy a country’s economic status. Can we get any dumber leaders in Government that would consider such foolishness. It’s almost as if we are living in the Egyptian days and Pharaoh is running the world, whose heart was hardened to reality.

The first part of this is noteworthy, but then they all go into bizarre land. I’m not sure about GMO’s, but there is a huge difference between natural genetic manipulation and splicing genes that cannot be done in nature. What’s even more drastic is this Monsanto person who thinks we should all live on some sort of “synthetic” food. I assume he’s speaking about some 3D printed type foods. Well, you still need the “raw materials”. It is Monsanto that has given us the brilliant technology of plants that produce no seeds. As a result they need to warehouse gigantic seed bins, just in case.