In his unofficial quest to become the worst president since Jimmy Carter, Joe Biden is borrowing from the Carter playbook and, according to experts, is bringing the United States into a time of stagflation.
Even more people are waking up to the reality that Biden is about to plunge the US into the worst economic predicament since Jimmy Carter.
From the Daily Wire:
Bridgewater Associates co-CIO Bob Prince said on Tuesday he believes the economy is "on the cusp of" stagflation during an interview at the World Economic Forum in Davos, Switzerland...
When asked by Bloomberg TV if he believes stagflation will hit the United States, Prince responded "we're on the cusp of it" — and argued that the bond market has not properly recognized the threat. After being pressed on the timing of the stagflation, Prince appeared to avoid making a prediction.
"The markets are under-discounting the inflation picture," Prince explained during the interview. "The sustainability, the self-reinforcing of the inflation is not discounted. The degree of tightening over time is not discounted."
So, while Prince is unwilling to make a prediction on when stagflation will hit, he does imply that, if we keep on this same Biden track, it's right around the corner.
Alongside Prince, other investors — including Pershing Square Capital Management CEO Bill Ackman — are wary about soaring inflation. "If the Fed doesn't do its job, the market will do the Fed's job, and that is what is happening now," Ackman argued on Tuesday.
"The only way to stop today's raging inflation is with aggressive monetary tightening or with a collapse in the economy," Ackman continued. "There is no prospect for a material reduction in inflation unless the Fed aggressively raises rates, or the stock market crashes, catalyzing an economic collapse and demand destruction."
Though a stock market crash is by no means desirable, an aggressive rate hike would increase the cost of borrowing money — likely slowing economic activity as a result.
So we can either rely on the Fed to fix this problem (yikes!) or have an entire market collapse.
Anyway, thanks again Jimmy 2.0!
P.S. Now check out our latest video: "Highlights from Biden's speech last night" 👇