{"id":2123167,"date":"2023-12-12T17:52:02","date_gmt":"2023-12-12T22:52:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/warren-buffetts-major-stock-moves-set-off-alarm-bells-about-the-us-economy-a-recession-is-right-around-the-corner\/"},"modified":"2023-12-12T17:54:59","modified_gmt":"2023-12-12T22:54:59","slug":"warren-buffetts-major-stock-moves-set-off-alarm-bells-about-the-us-economy-a-recession-is-right-around-the-corner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/warren-buffetts-major-stock-moves-set-off-alarm-bells-about-the-us-economy-a-recession-is-right-around-the-corner\/","title":{"rendered":"Warren Buffett&#8217;s stock moves raise concerns: &#8216;Recession imminent"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwarren-buffetts-major-stock-moves-set-off-alarm-bells-about-the-us-economy-a-recession-is-right-around-the-corner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2123167&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Warren Buffett&#8217;s \u2063Major Stock \u200cMoves Set Off Alarm Bells About the US Economy: &#8216;A \u2064Recession \u200dIs Right Around the Corner&#8217;<\/h2>\n<blockquote>\n<p>When the\u200c animals start to behave \u2064a certain way, it can be\u2062 wise to expect a storm.<\/p>\n<p>Frogs <a href=\"https:\/\/www.almanac.com\/can-animals-predict-weather-animal-folklore\" target=\"_blank\" rel=\"noopener\">croak louder<\/a> when rain is coming; birds get\u2064 more frenetic as\u2063 a deluge approaches.<\/p>\n<p>And when \u200bit comes to \u200bthe human animals \u200cwho\u2064 keep an eye on the economy, their behavior bears watching, too.<\/p>\n<\/blockquote>\n<p>According \u200bto <a href=\"https:\/\/www.newsweek.com\/warren-buffet-selling-28-7-billion-stock-rings-alarm-bells-over-economy-1851270\" target=\"_blank\" rel=\"noopener\">Newsweek<\/a>, billionaire investor \u2063Warren Buffett\u2019s \u2063Berkshire Hathaway firm spent the first three quarters of 2023 selling off $28.7 billion worth of stock\u2063 \u2014 a sign of what Johns\u200b Hopkins University \u200cProfessor of Applied Economics Steve H. Hanke sees as imminent economic decline.<\/p>\n<p>\u201c<strong>[A]  recession \u200dis\u200b right around the corner,<\/strong>\u201d\u200b Hanke, who served on \u200bPresident \u200cRonald Reagan\u2019s Council of Economic \u200bAdvisers, told \u2064Newsweek.<\/p>\n<p>Buffett, of course, has developed a reputation as what Newsweek called \u201cone of \u2063the\u2064 greatest investors of all\u2063 time.\u201d The billionaire\u2019s \u200dstock trades, therefore, \u2063attract considerable attention.<\/p>\n<p>Hanke cited the\u200d behavior of the <a href=\"https:\/\/www.westernjournal.com\/federal-reserve-experts-predict-us-will-avoid-recession-sowell-said-can-never-trust\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a> as a \u200dprobable \u200bcause of Buffett\u2019s pessimism. After all, \u2062\u201cthe\u200c U.S. money supply has contracted\u200d by 3.3 percent\u201d since July 2022.<\/p>\n<p>Curiously, that date coincides with the approximate start of the 2022 midterm \u200dcampaign \u200bseason, when President <a href=\"https:\/\/www.westernjournal.com\/democrat-running-biden-airs-graphic-ad-nbc-joe-will-hate\/\" target=\"_blank\" rel=\"noopener\">Joe Biden<\/a> and\u200d the \u200bDemocrats faced \u2064mounting \u2064criticism over runaway inflation.<\/p>\n<p>In \u2062its\u200c haste \u200dto \u200bcurb that inflation, did the Federal Reserve \u2063doom the country to a\u2063 severe economic downturn?<\/p>\n<p>\u201cThe current\u2063 monetary contraction is clearly going to lead to \u200bprecisely what monetary contractions\u2064 always \u2063lead to: A \u200crecession,\u201d Hanke said.<\/p>\n<p>The professor, \u2064as they say, brought receipts. In \u200bfact, according to Newsweek, he cited only four comparable periods of monetary contraction in U.S. history. \u2062These occurred in\u2064 1920-21, 1929-33, 1937-38\u2062 and \u200b1948-49. Each time, \u2063a severe recession followed.<\/p>\n<p>\u201cAnd with the Fed putting the money supply in\u200b a nosedive the likes that\u2063 we\u2062 haven\u2019t seen\u200b since 1933, Buffett is correctly anticipating that troubled economic waters\u200c are in the offing,\u201d\u2064 Hanke said.<\/p>\n<p>Perhaps only specialists will recognize the\u2063 significance of the earliest and latest of the contraction periods Hanke\u200d mentioned.<\/p>\n<p>However, 1920-21 did mark a period of severe economic \u2062decline \u2014 not merely a recession but a full-fledged <a href=\"https:\/\/www.frbsf.org\/education\/publications\/doctor-econ\/2007\/february\/recession-depression-difference\/\" target=\"_blank\" rel=\"noopener\">depression<\/a> \u2063following World War I. The 1921 U.S.\u2062 <a href=\"https:\/\/www.thebalancemoney.com\/unemployment-rate-by-year-3305506\" target=\"_blank\" rel=\"noopener\">unemployment<\/a> \u2064rate, in fact,\u2062 nearly\u200c <a href=\"https:\/\/www.thebalancemoney.com\/unemployment-rate-by-year-3305506\" target=\"_blank\" rel=\"noopener\">doubled<\/a> that of 1949.<\/p>\n<p>By contrast, all serious students of \u2063history know \u2063the meaning of the dates 1929-33. And some probably know why Hanke included \u20641937-38.<\/p>\n<p>In 1932-33 \u2014 the worst years \u2062of the Great Depression \u2014 nationwide unemployment\u200c approached a staggering and presently unthinkable 25 percent.<\/p>\n<p>Then, in 1938 \u2014 five years after President Franklin D. Roosevelt took\u2063 office \u2014 unemployment again surged to near 20 percent. Thus, \u2062contrary to liberal myth, Roosevelt\u2019s \u200cNew Deal resulted in economic stagnation.<\/p>\n<p>Sometimes, of \u200ccourse, the \u201canimals\u201d behave a certain way because they do not really believe their\u200b own lies.<\/p>\n<p>Among elite \u2064members of the <a href=\"https:\/\/www.westernjournal.com\/climate-czar-john-kerrys-private-jet-flying-place-2021-report\/\" target=\"_blank\" rel=\"noopener\">climate\u2064 cult<\/a>, for instance, we count many owners of \u2014 or \u2062passengers on \u2014 carbon-emitting <a href=\"https:\/\/www.westernjournal.com\/400-private-jets-follow-bezos-65-million-plane-summit-lecture-world-climate-change\/\" target=\"_blank\" rel=\"noopener\">private jets<\/a>. Their ownership of beachfront <a href=\"https:\/\/www.westernjournal.com\/obama-install-massive-fossil-fuel-tanks-marthas-vineyard-mansion\/\" target=\"_blank\" rel=\"noopener\">properties<\/a> testifies to how shallow their concerns about <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/border-towns-flooded-by-migrants\/\" title=\"Border towns overwhelmed by influx of migrants.\">rising sea\u200d levels<\/a> really are.<\/p>\n<p>Or, sometimes the \u201canimals\u201d have inside information.<\/p>\n<p>At the beginning of \u200ba pandemic, \u200cfor instance, elected representatives might sell \u200doff shares of stock in <a href=\"https:\/\/www.westernjournal.com\/report-doj-launches-probe-senators-dumped-stocks-coronavirus-crash\/\" target=\"_blank\" rel=\"noopener\">hospitality<\/a> industries.<\/p>\n<p>When it comes to predicting recessions, however, serious investors \u2064like Buffett need look only to history.<\/p>\n<p>For the rest of us, a\u2064 look\u2064 at recent history will provide all the perspective\u2062 we need.\u200b After all, the Biden \u2062administration already\u200d has produced catastrophes in <a href=\"https:\/\/www.westernjournal.com\/biden-admin-sent-2-35-billion-taliban-since-disastrous-afghanistan-withdraw\/\" target=\"_blank\" rel=\"noopener\">Afghanistan<\/a> and\u2062 <a href=\"https:\/\/www.westernjournal.com\/white-house-complains-speaker-johnson-money-ukraine\/\" target=\"_blank\" rel=\"noopener\">Ukraine<\/a>. Likewise, under Biden, political \u200b <a href=\"https:\/\/www.westernjournal.com\/jim-jordan-flabbergasted-top-doj-official-admits-clueless-key-case-dont-know-say\/\" target=\"_blank\" rel=\"noopener\">repression<\/a> has reached unprecedented <a href=\"https:\/\/www.westernjournal.com\/watch-tucker-carlson-takes-aim-wannabe-dictator-joe-biden-latest-twitter-show\/\" target=\"_blank\" rel=\"noopener\">depths<\/a>.<\/p>\n<p>Nothing would befit this administration more than to preside \u2063over another depression.<\/p>\n<p>Unfortunately, \u2062it\u2019s\u200c the rest of the country that will \u200cdo \u200bthe suffering.<\/p>\n<hr>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\/warren-buffets-major-stock-moves-set-off-alarm-bells-us-economy-recession-right-around-corner\/\">Warren Buffett&#8217;s Major Stock Moves Set Off\u2062 Alarm Bells About the US \u2063Economy: &#8216;A Recession \u2062Is \u2062Right Around the Corner&#8217;<\/a> \u2064 appeared first on <a rel=\"nofollow\" href=\"https:\/\/www.westernjournal.com\">The \u2063Western Journal<\/a>.<\/p>\n<p><\/body><br \/>\n<\/html>  <\/p>\n<h2> What historical evidence does Hanke cite to support his claim that the US\u2062 economy is headed for a \u200drecession<\/h2>\n<p><span>  Their lack of genuine concern for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/shapiro-debunking-climate-change-hysteria\/\" title=\"SHAPIRO: Debunking Climate Change Hysteria\">rising sea levels<\/a>. They may preach about climate \u200bchange and the need to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/massachusetts-climate-official-on-people-producing-emissions-we-have-to-break-your-will\/\" title=\"Massachusetts Climate Official On People Producing Emissions: \u2018We Have To Break Your Will\u2019\">reduce carbon emissions<\/a>, but their actions speak louder than their words.<\/p>\n<p>Similarly, when it comes to the economy, the behavior of investors like Warren Buffett cannot be ignored. Buffett&#8217;s major\u200b stock \u2063moves, particularly \u200chis decision to sell\u2064 off billions of dollars worth of stock, should raise alarm bells\u2063 about the state of the US economy.<\/p>\n<p>According to Johns Hopkins University Professor of Applied \u200dEconomics\u2063 Steve H. Hanke, Buffett&#8217;s actions are a clear indication that a recession\u200d is imminent. Hanke, who has served on President Ronald Reagan&#8217;s Council of Economic Advisers, is\u200d a respected authority on economic matters.<\/p>\n<p>Hanke \u2063points to the contraction of the US money supply as a probable cause for Buffett&#8217;s pessimism. Since July 2022, the US money supply has contracted by 3.3 percent. \u2064This contraction, Hanke argues, is a surefire recipe \u2064for a recession.<\/p>\n<p>To\u2063 support his claim, Hanke cites historical evidence. He highlights four comparable periods of monetary contraction in US history, namely \u20641920-21, 1929-33, 1937-38, and \u20621948-49. In each instance, a severe recession followed.<\/p>\n<p>While some may\u200b argue that the significance \u2062of these periods \u2063may not be immediately\u2064 apparent, closer examination reveals their importance.\u2063 For instance, the 1920-21 period marked\u2064 a full-fledged depression following World War I,\u200d with unemployment rates nearly doubling that of 1949.<\/p>\n<p>Similarly, the years 1929-33 are synonymous \u2062with the Great Depression, when nationwide unemployment reached \u2062unprecedented levels. Even in 1938, five years into\u2064 President \u2062Franklin \u200cD.\u200b Roosevelt&#8217;s New Deal, unemployment surged again, contradicting the belief that the New Deal was an effective solution.<\/p>\n<p>It is crucial to pay attention to the actions of\u2063 influential investors like Warren Buffett. While they\u2062 may not be infallible, \u200btheir track record and expertise provide\u200d valuable insight \u200dinto \u2062the state of the economy. Buffett&#8217;s decision to\u200c sell off considerable stock should not be\u200d taken \u200dlightly, \u2062as it suggests that troubled economic waters \u2062lie ahead.<\/p>\n<p>Just as animals exhibit certain behaviors as signs of an approaching storm, investors and experts in the field of \u2063economics often display similar signs when they predict\u2063 an economic downturn. It is \u2062up to policymakers, analysts,\u200d and individuals to heed these warnings \u2064and take\u2063 appropriate measures. Ignoring the alarm bells raised by\u200d Warren Buffett&#8217;s major stock moves could have \u2062significant consequences for the US economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When animals show specific behavior, like frogs croaking louder or birds becoming more frenetic, it&#8217;s a sign of an impending storm. Similarly, the actions of humans who monitor the economy should also be observed. Newsweek suggests that their behavior holds significance<\/p>\n","protected":false},"author":2056,"featured_media":2123168,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2123167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2123167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2056"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2123167"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2123167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2123168"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2123167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2123167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2123167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}