{"id":18103,"date":"2023-02-26T19:59:49","date_gmt":"2023-02-26T19:59:49","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/market-strategist-michael-wilkerson-believes-us-inflation-could-rise-to-12-by-year-end-despite-predictions-of-decrease-bitcoin-news\/"},"modified":"2023-02-26T19:59:49","modified_gmt":"2023-02-26T19:59:49","slug":"market-strategist-michael-wilkerson-believes-us-inflation-could-rise-to-12-by-year-end-despite-predictions-of-decrease-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/market-strategist-michael-wilkerson-believes-us-inflation-could-rise-to-12-by-year-end-despite-predictions-of-decrease-bitcoin-news\/","title":{"rendered":"Market Strategist Michael Wilkerson Believes US Inflation Could Rise to 12% by Year-End Despite Predictions of Decrease \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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While several market strategists and analysts expect U.S. inflation to drop considerably in 2023 compared with last year, Michael Wilkerson, founder of Stormwall Advisors, thinks the inflation rate could climb as high as 12% by the end of this year. The country\u2019s inflation rate has cooled down over the past seven months, but Wilkerson insists that the U.S. Federal Reserve \u201cis going to run out of firepower.\u201d<\/strong><\/p>\n

Stormwall Advisors\u2019 Michael Wilkerson Believes U.S. Will \u2018See Another Spike up\u2019 in Inflation<\/h2>\n

Over the last two months, many reports have stated that inflation has peaked, and in the U.S., the consumer price index (CPI) has dropped<\/a> for seven consecutive months since its high in June 2022. In a recent interview<\/a> between Kitco News anchor Michelle Makori and Michael Wilkerson, founder of Stormwall Advisors, Wilkerson expressed his expectation of another surge in U.S. inflation. While acknowledging that his view is in the minority, Wilkerson emphasized that \u201cinflation doesn\u2019t move in a linear path; you do see some cycling.\u201d<\/p>\n

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Kitco News anchor Michelle Makori (left) and Michael Wilkerson (right), the founder of Stormwall Advisors.<\/figcaption><\/figure>\n

\u201cI don\u2019t believe we\u2019ve seen the end of inflation and I do think we\u2019re gonna see another spike up,\u201d Wilkerson said during his interview. \u201cWhether it\u2019s 8% or 12%, nor can I say precisely what it will be by the end of 2023, but I do believe that it is possible that we find ourselves back in that range this year.\u201d<\/p>\n

Wilkerson explained how the M2 money supply has grown since 2008 and has further ballooned during the Covid-19 pandemic. As the executive of Stormwall Advisors and author of \u201cWhy America Matters: The Case for a New Exceptionalism,\u201d Wilkerson asserted that the increase in the money supply inevitably results in an accompanying increase in prices, as evidenced by historical patterns. He believes that, from the perspective of policymakers, inflation is a preferable option since it is the \u201clesser of two evils.\u201d<\/p>\n

\u201cThe Fed is going to run out of firepower,\u201d Wilkerson told Makori. \u201cUltimately, this becomes a trade-off between tamping down on inflation, slaying the inflationary dragon, and allowing recession and unemployment to rise. And governments, always and everywhere, choose inflation,\u201d he added.<\/p>\n

Several analysts and economists believe, however, that inflation will decrease this year. For example, economist Mohamed El-Erian<\/a> of the University of Cambridge expects<\/a> inflation to become \u201csticky\u201d at around 4% in midyear. Adam Posen, the president of the Peterson Institute for International Economics and former Bank of England official, anticipates that U.S. inflation will reach the 3% range by the end of 2023. \u201cGetting from the high inflation where we are now towards 3% is baked in,\u201d Posen said<\/a> at the end of Dec. 2022.<\/p>\n

During his conversation with Makori, Wilkerson shared a contrarian view and emphasized that price inflation would eventually catch up. \u201cThe money supply increased by 40 percent just from the year 2000,\u201d Wilkerson said. \u201cThere has never been a time in history when the money supply increased by that much without resulting in inflation \u2014 price inflation always catches up with money supply inflation.\u201d<\/p>\n

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3% range<\/a>, Adam Posen<\/a>, Analysts<\/a>, Bank of England<\/a>, consumer price index<\/a>, contrarian view<\/a>, Covid-19 pandemic.<\/a>, economic outlook<\/a>, Financial Markets<\/a>, high inflation<\/a>, historical patterns<\/a>, inflationary dragon<\/a>, Inflationary pressures<\/a>, M2 money supply<\/a>, market strategists<\/a>, Michael Wilkerson<\/a>, midyear<\/a>, Mohamed El-Erian<\/a>, money supply inflation<\/a>, Peterson Institute for International Economics<\/a>, policymakers<\/a>, price inflation<\/a>, Recession<\/a>, sticky inflation<\/a>, Stormwall Advisors<\/a>, Surge<\/a>, U.S. Federal Reserve<\/a>, U.S. inflation<\/a>, Unemployment<\/a>, university of cambridge<\/a><\/div>\n<\/div>\n

Do you agree with Wilkerson\u2019s contrarian view on inflation, or do you think the predictions of other economists will hold true? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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