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| Jerome Powell - Bank of America |
Severe recession needed to cool inflation, Bank of America analysts say
Bank of America: 'Sticky' inflation could take some time to come down
FOX BUSINESS REPORTS...
The only way to cool down inflation is with a recession... economists define a recession as a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
In this case, SEVERE means intense and longer than normal... whatever normal is because in an economic sense normal is a flexible variable and difficult to define when situations occur that are different than expectations...
This means a recession could last for the next two years of the Biden Administration... and, if our recession is this severe then you should expect lots and lots of layoffs, a reduction of goods and services to the marketplace resulting in much higher prices. The Fed will continue to raise interest rates making it rather difficult for individuals, families, businesses, and corporations to borrow money. These higher rates will apply to ALL LOANS and MORTGAGES.
Our Gross Domestic Product (GDP) will decline which means our economy will decline... and, as our economy declines then the value of our dollar will decline as well.
- Businesses will spend less
- Consumers will spend less
- Banks will loan less money
- Unemployment will increase
- The Govt might extend unemployment benefits
- If the govt spends more our debt will increase
- Businesses will not expand operations
- Businesses will not invest in future technology
- Businesses will not be globally competitive
- States will reduce services
- Cities will reduce services
- Illegal immigration will deplete resources
- Crime and violence will increase
REMEMBER: it was not Trump's policies that caused this to happen... it was Joe Biden's policies that caused this to happen, starting with his attack on the OIL INDUSTRY...
What we are experiencing are the UNINTENDED CONSEQUENCES OF THE DEMOCRATS...
