America’s overheated economy is in danger of meltdown as inflation spirals out of control, food is becoming scarce and experts warn complete economic disaster is just around the corner!
After inflation hit a 40-year high of 8.5 percent in March, Republican National Committee Chairwoman Ronna McDaniel groused, “Prices are skyrocketing, families are struggling!”
Hard times are indeed here!
Common expenses are exploding with rents up 17 percent on average nationwide and gas at a staggering $5.98 a gallon in some California communities. But car prices have nearly doubled in two years — with no relief in sight!
It gets worse.
Americans are being particularly squeezed at the supermarket, where supply chain woes have left shelves empty and driven up the cost of everyday items by as much as 20 percent. A gallon of milk now exceeds $4 on average, and the price of a dozen eggs spiked above $3 for only the second time in history.
Families living on the edge have been hit especially hard.
Tammy Ferrell, a Durham, N.C., grandmother, is raising four kids by herself and says price hikes caused her to swap meat for noodles — and then to go hungry!
“No matter what, I’m the one who lacks,” laments the 60-year-old. “Inflation has really killed me.”
Rising food prices are also a huge problem for restaurants.
“If you come to my restaurant for chicken wings, they’re now ungodly expensive,” says chef Dan Blumenthal, who’s based in Jackson, Miss. “You can go to the grocery store if you want to do it yourself, but they’re just as expensive!”
Meanwhile, financial experts are predicting an approaching economic doomsday where millions of people and businesses default on loan payments, plummeting the country into a recession.
Bank of America declares “inflation is out of control” and Deutsche Bank is bracing for a countrywide recession in the second half of 2023.
Financial expert Andy LaPointe says it’s “100 percent” certain the U.S. will plunge into recession in the near future.
“It’s the combination of rising prices for everything in a family’s budget, and the cost of rent going up as well,” says LaPointe, who warns America could even experience a “stagflation” like back in the mid-1970s, when interest rates peaked at nearly 20 percent and unemployment rose to 8.2 percent.
The war in Ukraine has already sparked a 1970s-era-like gas crisis. In response, the government has drained the country’s Strategic Petroleum Reserve to levels not seen since 1984 while begging Big Oil to ramp up production.
Even though America’s economy appears to be humming, financial experts warn interest rate hikes will soon slam on the brakes.
“The unfortunate truth is public officials need to dramatically raise interest rates,” Danny Kofke, an expert with the Atlanta-based financial wellness company Mentoro, tells The National ENQUIRER. “When interest rates rise, people will start borrowing less and, thus, spending less. That’s where you can throw the economy into a recession.”
LaPointe, author of Bitcoin Smart Kids, predicts a new housing crash like the one that crippled the economy in 2007.
“The same situation could be developing now,” he says. “Mortgage payments will skyrocket when interest rates rise. People will find themselves underwater on their mortgage and struggling to meet higher payments. History is unfortunately repeating itself.”
Meanwhile, the federal government may need to intervene.
“The government will have to do something in order to cover that shortfall, and there are only two ways,” explains LaPointe. “It can print more money or raise taxes. I’m betting on the latter, which slows down the economy even more and literally affects every family.”
That’s bad news for struggling mom of three Irene Galindo.
“I paid $57 [for groceries]” she told a news crew at a Sacramento, Calif., supermarket. “I think six months ago it would have been about $28 [to] $30.”
She says she’s looking for weekend work and has turned to a food bank to feed her family, adding, “It’s a hardship.”
Article source: www.nationalenquirer.com