As gas prices and other items continue to grow in the face of inflation, Bank of America has warned that the worst could be just around the corner.
With annual inflation rising to a staggering 8.6 percent in May (the highest it’s been in over 40 years), Michael Harnett, who serves as chief investment strategist for the group, noted that the shock from said inflation is far from over. “We’re in technical recession but just don’t realize it,” he explained.
He also stated that different “shocks” are in effect, most notably “rates shock,” which is just starting to gain speed. “Growth shock” is also set to open the picture, with “no release valve from peak in yields.” And with the Dow Jones Industrial Average dropping a whopping 800 points this past week, things could get worse as the summer continues on, leading to the rest of 2022.
“What can turn shallow into deep is the great unknown of the shadow banking system,” Harnett added, referring to a “shallow recession” that could come from household and consumer balance sheets.
There had been talks of a possible recession in 2023, but that still remains to be seen. With the current state of inflation, however, there’s a stronger chance of it happening as gas and housing prices grow to staggering heights.
Joining us now to speak on Yellen’s somewhat inconclusive comments is a representative for Birch Gold Group, discussing the state of the economy further. (This could be either Brett Winterble or Dr. Ron Paul.)
Q&A:
- Even with the somewhat cryptic commentary from Bank of America regarding “shadow banking,” it appears that a recession is more than likely in 2023. Do you believe there was any way that this could’ve been avoided, or was it inevitable?
- Harnett talked about the different types of “shock” settling in with growth, rates and inflation. Does this term seem about right when it comes to the lingering effects of inflation as a whole? We know a lot of people are still shocked whenever they fill up their gas tank.
- We saw the Dow take a huge drop over the weekend, by 800 points. How do you think this affects the market as a whole, and what do you think traders could learn from its instability at the moment?
- How bad do you think inflation will get as the year goes on? We know gas prices could reach record amount in some points, but how badly do you think it’ll affect the housing market? Or even buying some of the food that people out there enjoy?
- Birch Gold Group is a company that specializes in tangible assets, including gold and silver. Do you believe that now is as good a time as any to invest in these metals and try to secure better savings for the future?
- Where can we learn more about Birch Gold Group, gold IRAs, and other services provided by Birch Gold.
- You can visit https://www.birchgold.com.
About Former Congressman Ron Paul:
Dr. Ron Paul is a former Republican congressman from the 22nd congressional district of Texas. Ron Paul espoused strong conservative and Libertarian positions, including maintaining a fiscally responsible government. Before his involvement in the political arena, Dr. Paul was a physician. He is active as a writer and spokesperson for organizations representing his core beliefs, including honest money. He is currently conducting a media tour for Birch Gold Group.
About Brett Winterble:
After spending nearly a decade with Rush Limbaugh as a Producer, Brett Winterble began his own show in 2008.
Brett currently hosts The Brett Winterble Show, heard Monday through Friday from 3-6 pm on News Talk 1110 & 99.3 WBT in Charlotte, North Carolina. Prior, Brett was heard on Sirius XM, plus 980 KFWB in Los Angeles and 760 KFMB in San Diego.
A lover of Current Events, Sports, Entertainment, and stories that really matter to the local audience, Brett has high energy and boundless curiosity.
He is a graduate of Emerson College and American Military University with degrees in Political Communication and Homeland Security/Intelligence Studies. Brett is married and has 2 teenagers plus a couple of cats, three birds, and some fish. His hobbies include travel, comedy writing, consuming motorsports, and barbecue.
CONTACT: Jerry McGlothlin of Special Guests 919-437-0001 jerry@jerryspecialguests-com
(Please note that Dr. Paul is only available for television interviews.)
