Banking Giant Predicts 2024 Catastrophe: Americans to Exhaust Savings by October.

Major Bank Economist Predicts Recession as Cash Runs Out

According to a leading economist at a major bank, the economy is likely to sputter its way into hard economic times as consumers run out of cash. David Folkerts-Landau, Deutsche Bank’s chief economist, predicts a 100 percent chance of a recession, stating that the U.S. is heading for its first genuine policy-led boom-bust cycle in at least four decades. He emphasizes that avoiding a hard landing would be historically unprecedented.

Folkerts-Landau points out that the Federal Reserve’s efforts to reduce inflation without causing a free fall in the economy have not been fully successful. While inflation is decreasing, unemployment is rising, and it is predicted to jump from 3.7 percent in May to 4.5 percent in the first three months of 2024, a presidential election year.

Furthermore, Folkerts-Landau predicts that by October, the excess savings that many Americans built up during the pandemic will be gone, leading to a retrenchment in consumer spending.

“Deep recession … massive electoral chaos. Very difficult for Joe Biden to win. His approval numbers are already low in the 37% to 40% range. With a deep recession, his numbers will get worse.” – Wall Street Silver

Folkerts-Landau is not the only one forecasting dark times ahead. Darrel Cronk, president of Wells Fargo Investment Institute, also believes that a recession is imminent, stating that much of the manufacturing sector of the economy is already in recessionary territory. Justyna Zabinska-La Monica, senior manager of Business Cycle Indicators at The Conference Board, agrees, pointing to recent data that indicate a worsening economic outlook.

Republican Rep. Jason Smith of Missouri blames President Biden’s economic policies for the nation’s economic malaise, stating that they have put the Federal Reserve in a difficult position.

A recent CNBC/Morning Consult survey shows that many consumers are already cutting back due to higher prices. The survey reveals that 92 percent of Americans with incomes between $50,000 and $100,000 a year are either “somewhat” or “very” worried about higher prices.

Has Biden wrecked the U.S. economy?

According to the CNBC/Morning Consult survey, 80 percent of respondents have cut back on non-essential items, and about two-thirds are reducing costs for essentials by seeking cheaper alternatives to their usual brands. Looking ahead, 77 percent of shoppers plan to further trim their spending on non-discretionary items.

Clothing tops the list of non-essential items where shoppers are spending less, with 63 percent buying less since the start of the year. The survey, conducted earlier this month, included more than 4,400 adults.

Source: The Western Journal