Economy Plunges into Stagflation with Both Feet
Talk about a one-two-three punch to the ground!
Stagflation came in perfectly on target for The Daily Doom’s predictions today. Real GDP is now falling much harder than was expected yesterday by two-faced Jamie Dimon when he spoke out of his second face, saying the economy is “booming,” backed by “healthy consumer finances.” He called it an “unbelievable” economy. I’ll agree with that part. I certainly didn’t believe it when he said it yesterday.
You see, only the day before, his first face said the economy looked like we could be heading into the stagflation of the 70s, which means a stagnant economy with high inflation. Those are diametrically opposite claims to my way of thinking. After he appeared to walk stagflation back yesterday when he said the economy was booming, today we all learned we are already in the stagflation of the 70s. (We’ve actually been in it all year, but it finally got reported.)
The official report on Q1 real GDP for 2024 showed the economy is stagnant, while the Personal Consumption Expenditures (PCE) price index scored its largest inflation gain all year (at 3.4% annualized). To be specific, GDP fell off to a 1.6% annualized pace (adjusted for seasonality and inflation), according to the Bureau of Economic Analysis. That is a plunge to less than half of the 3.4% growth the BEA claimed for the final quarter of 2023 and the 4.9% in the quarter before that, and it even came in well below the 2.4% that was forecast recently by economists in a Dow Jones survey.
So, the two-faced Dimon should have stayed with what his first face said two days ago because GDP readings under 2% are usually considered borderline recession—far from “BOOMING,” which means the US economy is, in fact, stagnant with rising inflation, which means the 1970s are back … because …
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