Inflation Soars. Stagflation & Recession Are Here Now, Too.

Inflation is high. Economic growth is negative. Except for the low unemployment rate, we are in the worst of times.

The U.S. government just announced that overall prices increased by 1.3% from May to June. That means inflation in the last 12 months has reached 9.1% — another 40-year high.

As I’ve noted in previous Newsmax columns, inflation could reach near double-digit levels by the end of the summer.
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Since the economy is shrinking or receding, regardless of what a government agency says, we are in a recession.

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The next bit of disturbing news will come in about two weeks. When the Federal Reserve meets at the end of the month, as noted in previous columns, the Fed will raise interest rates at least 75 basis points — and perhaps as much as 100 basis points.

A day or so later, the government will announce its first estimate for gross domestic product (GDP) growth in the second quarter. That number will be negative, perhaps as much as -2.5%. That will be the second consecutive quarter of negative growth in GDP, following the revised -1.6% for the first quarter — which is the classic definition of a recession.