Atlanta Fed Forecasts Recession

It’s official. The Atlanta branch of the Federal Reserve now says it believes that the United States economy is in the midst of a recession. [Outsider Club Header] Jul 06, 2022 By Luke Burgess for the Outsider Club Atlanta Fed Forecasts Recession It’s official. The Atlanta branch of the Federal Reserve now says it believes that the United States economy is in the midst of a recession. Last week, the Atlanta Fed revised its second-quarter GDP forecast into negative territory. On Thursday, the bank lowered its second-quarter GDP growth forecast from +0.3% to -1.0%. Then on Friday, the bank lowered its forecast again to -2.1%. [gtr4] The U.S. Bureau of Economic Analysis recently revised first-quarter GDP growth down to -1.6%. So a GDP decline in Q2 would officially mean a recession in America. Most analysts have been predicting a recession for months, but many on Wall Street have said they don’t believe a U.S. recession will begin until next year. But it's more likely they were all simply being intentionally overoptimistic. The Bureau of Labor and Statistics is scheduled to release initial GDP data for the second quarter on July 28. We will know then. There are multiple factors that could trigger an economic recession, but it’s no secret that inflation and the Federal Reserve's interest rate hikes are the clear culprits. Fed Chairman Jerome Powell recently said at a European Central Bank forum that America’s central bank is “strongly committed” to bringing down inflation. “The way to do that,” Powell said, “is to slow down growth, ideally keeping it positive.” To that end, the Federal Reserve has instituted multiple rate hikes in the past several months. Since March, the Fed has increased its benchmark rate by 1.5 percentage points and signaled for more hikes through the remainder of the year and maybe into 2023. Could This $6 Virginia Tech Upstart Be About to "Crucify" Coal? Approximately 153 U.S. coal plants are expected to shut down by 2025... Plants that currently power a staggering 9.7 million American homes. And now a bizarre metallic substance pioneered by [a tech operation scheming out of Reston, Virginia](... Could take over our crippled coal empire and snatch the $1.14 billion per year in revenues it will leave it its wake. Given that this tiny upstart’s making just over $1 million in revenues... What’s coming could spell a staggering 46,018% gain opportunity for those willing to act soon. What’s in [this breakthrough report]( reveals this may only be the beginning... [So click here now before this opportunity is gone.]( The Fed’s plan to control inflation is to slow economic growth. But rapid economic growth isn’t the cause of the inflation the country is experiencing today. So it doesn’t make much sense that slowing economic growth would be the best solution. It makes much more sense to me to first identify the root cause of the inflation and from there begin to create a solution. So what is the root cause? That depends on who you ask. If you ask the Fed, it'll tell you the root cause of inflation (and thus the recession) is rapid economic growth. If you ask the Biden administration, it'll tell you the root cause is Russia and the greedy oil companies jacking up prices for profit. If you ask the conservatives, they’ll tell you the cause is Biden’s COVID spending. But I can show you the true root cause of all our economic woes right now. It’s a chart I’ve shown you many times over the past several months. U.S. Dollar Supply [grt] In 1997, The Notorious B.I.G. recorded the now-classic East Coast hip-hop track "Mo Money Mo Problems." The chorus is one of the most well-known in rap. Even if you’re not a hip-hop fan, you’ve heard it: I don't know what they want from meIt's like the more money we come across The more problems we see The lyrics explain how money and success can lead to problems, but they could just as well explain the economic theory behind the inflation/recession problem we face today. It all starts with a simple supply-and-demand concept in what economists call the quantity theory of money (QTM). “Lithium Crunch” Ahead: Buy THIS Stock Our exploding battery demand is causing a giant lithium crisis. According to the International Energy Agency, current lithium production will have to increase by 50x in the coming years... But one little-known company has figured out how to make high-performance batteries that require NO lithium whatsoever. This [patented technology]( was developed in cooperation with the University of Queensland and is starting to roll out as we speak. [Check out my free report on this once-in-a-lifetime opportunity.]( The quantity theory of money states that the value of money (and price levels for goods and services) is directly proportional to the amount of money in circulation — aka money supply. In other words, the more money that's created, the less valuable existing money becomes. [qtm7/20] In response to the COVID-19 pandemic, the U.S. Federal Reserve intervened to help curb economic damage. That support included emergency rate cuts down to 0% from 0.25% and the largest expansion to U.S. money supply in history. In the first three months of the pandemic, the Federal Reserve jacked up the supply of U.S. dollars by 15%. In total, the Fed has increased the U.S. dollar supply by more than 40% since the beginning of the pandemic. I think it’s important to note here that the Federal Reserve has created this exorbitant amount of new money under BOTH the Trump and Biden administrations. Conservatives really want to put the inflation blame on Biden and, yes, he is partly responsible. But the money printing took place under BOTH Trump and Biden. In fact, if we’re counting, there was much more money created during the last year of the Trump administration than the entire time Biden has been in office. From the beginning of the COVID pandemic to the end of Trump’s presidency (about 11 months), the supply of U.S. dollars increased by about $3.9 trillion. That increased the money supply by about 25%. Compare that with the supply of dollars created since Biden took office (about 18 months), which is about $2.4 trillion, or a 12% increase in USD supply. Either way, if one administration is responsible for the inflation and resulting recession we’re likely experiencing right now, both of them are. Until next time, [Luke Burgess Signature] Luke Burgess Say Goodbye to Slow Internet Elon Musk’s satellite service, Starlink, is currently providing the fastest internet in North America. The internet market is worth $352 billion — and Starlink stands to take a big chunk of this market. There’s a component maker that supplies equipment to Starlink for its satellite dishes. Without this company’s tech, Starlink can’t continue providing internet for over 400,000 subscribers. And as the subscriber base continues to grow, the demand for this company’s tech will grow as well. [I have all the details on how to get in early right here.]( Follow the Outsiders [Twitter]( | [Facebook]( | [LinkedIn]( | [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Outsider Club LLC, 3 E Read Street Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. 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