The Atlanta Fed’s GDPNow estimate fell to 1.9 percent, down from 2.5 percent just five days ago. At the start of February, the Atlanta Fed’s estimate called for GDP growth above 5 percent.
Economists at JP Morgan lowered their estimate to 2.0 percent, down from 2.5 percent. Goldman Sachs lowered its estimate from 2 percent to 1.8 percent. more …
Opinion: Ask 10 economists a question and you will get 11 answers.
Just two weeks ago top economists were calling for the economy to overheat and inflation to rise exponentially.
Seeking Alpha: “Fiscal policy has thrown fire on what is already a very prolonged economic upturn. With capacity tight and structural growth restrained, there are some signs of a possible overheating of the economy.”
White House Budget chief: “America’s recent growth figures have been so positive that even the administration of President Donald Trump has allowed itself to marvel. “It’s actually happening faster than we expected.”
UBS Wealth Management: “Fed to hike interest rates 7 times before 2020”.
So why then, is the economy now forecast to only grow 2% at best in the next year? Try stepping on the gas pedal of a fast car while firmly depressing the break pedal. The two pedals are working against each other.
That is what debt does to an economy. If the Fed were to raise interest rates multiple times to fight inflation, that was reported yesterday to be stagnant at 1.8%, the economy would stall much like our fast car when you slam on the brakes.
Perhaps the Fed wants to raise interest rates to unload the $4 trillion in funny money on their balance sheet after 3 rounds of quantitative easing (money printing).
For some reason no one cares about debt anymore but instead they worry about an overheating economy bringing inflation.
The rider on the Black Horse of Revelation 6:5-6 brings hyperinflation. The Apostle John does not tell us how it happens but any economics student knows that if a nation’s currency crashes, the price of everything skyrockets in a hurry.
Venezuela’s inflation recently hit 6000% compared to under 2% here in the US. The black Horse rider will bring a time when a man will work a full day to feed himself for 1 day.
Hyperinflation can happen suddenly and can be caused by an unexpected event like say the sudden disappearance of a significant number of taxpayers (1 Thess. 4:16-18, 1 Thess. 1:10, 1 Thess, 5:9, Rev. 3:10).