2024 to witness colossal recession, reveals fresh data.
OAN’s Stephanie Stahl
12:00 PM – Monday, October 9, 2023
Experts predict that the year 2024 could bring about the most severe economic collapse since the Great Depression. Despite the White House’s claims of success with “Bidenomics” and its supposed benefits to the economy, concerns are mounting that a recession may be imminent due to skyrocketing inflation, interest rates, and market uncertainty.
The strain on the U.S. economy began in 2020 when the COVID-19 pandemic forced government lockdowns and mandates. To keep the economy and stock market afloat, the U.S. Congress spent trillions of dollars. Additionally, the Federal Reserve’s policies led to unprecedented levels of money creation.
According to Rep. Brad Wenstrup (R-Ohio), the “massive growth in government spending” during the U.S. Covid-19 response, which amounted to $4.6 trillion, is the root cause of the current inflation. Despite economists’ warnings, the Federal Reserve kept interest rates low during the pandemic, further exacerbating the situation.
In 2022, the Federal Reserve began raising interest rates again to address the damage caused by the pandemic and control inflation. However, the Biden Administration and Congress did not reduce government spending. As a result, while the inflation rate has decreased, prices for consumer goods, gas, rent, and housing remain significantly higher than pre-pandemic levels.
Furthermore, the U.S. money supply has declined at an unprecedented rate, posing another challenge in curbing inflation. The latest Federal Reserve data shows a 4.6% drop in the “M2” money supply in April 2023, the largest decline since tracking began in 1959.
This decrease in money supply, caused by the Federal Reserve’s policies and the Biden Administration’s spending, has put a tremendous strain on American families. Many are dipping into their savings and relying on credit cards to cover basic living expenses, resulting in record-high consumer debt.
Meanwhile, Congress and the Biden Administration are working towards a deal on government spending. A timely agreement is crucial for any improvement in prices and inflation. Otherwise, the U.S. could face another major economic crisis.
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What are the concerns about the proposed spending plans and their impact on inflation and the economy?
The stability of the economy. However, there are concerns that the proposed spending plans may further exacerbate the inflation problem and lead to a deeper economic crisis.
One of the major factors contributing to the potential economic collapse in 2024 is the skyrocketing inflation. Inflation refers to the sustained increase in the general price level of goods and services in an economy over time. The United States has seen a significant increase in inflation since the COVID-19 pandemic began in 2020. The government’s response to the pandemic, including lockdowns and mandates, forced Congress to spend trillions of dollars to keep the economy afloat. Additionally, the Federal Reserve’s policies of low interest rates and money creation further added to the inflationary pressures.
According to Rep. Brad Wenstrup (R-Ohio), the massive growth in government spending, amounting to $4.6 trillion during the COVID-19 response, is the root cause of the current inflation. Despite warnings from economists, the Federal Reserve continued to keep interest rates low, which worsened the situation. This combination of excessive government spending and accommodative monetary policy has led to higher prices for consumer goods, gas, rent, and housing.
In an attempt to address the inflation problem, the Federal Reserve started raising interest rates in 2022. However, the Biden Administration and Congress did not reduce government spending, which has maintained pressure on prices. As a result, while the inflation rate has decreased slightly, it remains significantly higher than pre-pandemic levels.
Another challenge in curbing inflation is the decline in the U.S. money supply. The latest data from the Federal Reserve shows a 4.6% drop in the “M2” money supply in April 2023, the largest decline since tracking began in 1959. This decrease in money supply, caused by the Federal Reserve’s policies and the Biden Administration’s spending, has put a tremendous strain on American families. Many people are dipping into their savings and relying on credit cards to cover basic living expenses, resulting in record-high consumer debt.
While the economy is facing these challenges, Congress and the Biden Administration are working towards a deal on government spending. A timely agreement is crucial to provide stability and confidence to businesses and investors. However, there are concerns that the proposed spending plans may exacerbate the inflation problem further. It is essential for policymakers to carefully consider the potential consequences of their actions and prioritize long-term economic stability.
In conclusion, experts predict that the year 2024 could bring about the most severe economic collapse since the Great Depression. The combination of skyrocketing inflation, high government spending, and excessive money creation has created an unstable economic environment. The Biden Administration and Congress must take proactive measures to address these issues and ensure the long-term stability of the U.S. economy. Failure to do so may result in dire consequences for American families and businesses.
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