{"id":20061,"date":"2023-04-21T00:38:53","date_gmt":"2023-04-21T00:38:53","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/commodity-strategist-warns-us-economy-heading-toward-severe-deflationary-recession-economics-bitcoin-news\/"},"modified":"2023-04-21T00:38:53","modified_gmt":"2023-04-21T00:38:53","slug":"commodity-strategist-warns-us-economy-heading-toward-severe-deflationary-recession-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/commodity-strategist-warns-us-economy-heading-toward-severe-deflationary-recession-economics-bitcoin-news\/","title":{"rendered":"Commodity Strategist Warns US Economy Heading Toward ‘Severe Deflationary Recession’ \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Bloomberg Intelligence\u2019s senior commodity strategist, Mike McGlone, has warned that the U.S. economy is \u201cheading towards a severe deflationary recession,\u201d emphasizing that the Federal Reserve is still tightening. \u201cTypically, when you have commodities collapsing at this velocity in the past, the Fed has already been easing, and they\u2019re still vigilant against that,\u201d he cautioned.<\/strong><\/p>\n

Strategist Says We\u2019re \u2018Heading Towards a Severe Deflationary Recession\u2019<\/h2>\n

Mike McGlone, a senior commodity strategist for Bloomberg Intelligence (BI), the research arm of Bloomberg, warned in an interview with Yahoo Finance Live last week that the U.S. economy is heading towards a severe deflationary recession. He described:<\/p>\n

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I see what we\u2019re doing is heading towards a severe deflationary recession, as indicated by commodities, by the Fed still tightening.<\/p>\n<\/blockquote>\n

\u201cNow we have a pretty serious credit crisis going on with just pulling back of deposits from the major banks. That means it\u2019s just starting to get started. And the key thing \u2026 is we were just looking at annualized industrial demand for natural gas in this country. It\u2019s the lowest in six years now. And that\u2019s an annualized basis so it\u2019s not seasonal,\u201d the strategist explained.<\/p>\n

McGlone also cautioned that the Federal Reserve keeps talking about raising interest rates higher despite recent economic data. \u201cThey\u2019re starting to get that trend of misses, misses on PPI, misses on retail sales. And it\u2019s just, to me, part of what happens in a recession. I think that\u2019s the stage we\u2019re at right now,\u201d he detailed. \u201cThe markets are getting it. T-note yields, 10-year notes are getting it, but the Fed is still being vigilant against inflation.\u201d<\/p>\n

The commodity strategist continued: \u201cYou look at PPI, I see PPI on a year-over-year basis heading towards negative by the time we get to July. And that\u2019s just what happens normally when commodities collapse.\u201d He stressed:<\/p>\n

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The Fed is still tightening. Typically, when you have commodities collapsing at this velocity in the past, the Fed has already been easing, and they\u2019re still vigilant against that.<\/p>\n<\/blockquote>\n

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Bloomberg Intelligence<\/a>, commodity strategist<\/a>, deflationary recession<\/a>, Fed<\/a>, Fed tightening<\/a>, Federal Reserve<\/a>, Federal Reserve easing<\/a>, Mike McGlone<\/a>, QE<\/a>, QT<\/a>, Recession<\/a>, severe deflationary recession<\/a>, us economy recession<\/a><\/div>\n<\/div>\n

What do you think about Mike McGlone\u2019s \u201csevere deflationary recession\u201d warning? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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

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