Welcome To The Biden Recession

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by Tyler Durden
Friday, Jul 01, 2022 - 08:40 PM

One day after the Atlanta Fed's GDPNowcast printed its first Q2 GDP estimate, the dam has broken and earlier today, the closely watched regional Fed whose GDP estimates are the closest to real time economic activity the US has, put the US Q2 contraction at a whopping -2.1% (there is some wiggleroom but the conclusion is clear: the US economy is shrinking). Which means that combined with the official final revision of Q1 GDP at -1.6%, the US is now in an unofficial recession defined as two consecutive quarters of GDP (the official recession will have to wait until the end of the month when the BEA publishes its first estimate of Q2 GDP)..

And while there are those career economists who are "shocked" by how quickly the US economy has imploded, like one of the most incompetent "experts" in modern history, Democratic economist-for-hire Larry Summers, who told Bloomberg that "the risks of a 2022 recession are significantly higher than I would have judged six or nine weeks ago,” adding that “If the economy did go into recession in the next six to nine months, then you’d probably see a reduction in inflationary pressures”, we'll remind readers that we laid out precisely what is taking place now back in March in "A World At War" - Global Recession Next, And Then QE5."