With the banking industry crisis still underway, the United States Federal Reserve increasing interest rates to the highest levels in more than 20 years, and the producer price index (PPI) dropping at the fastest rate ever, Mike McGlone, a Bloomberg expert, has insisted that it might all be leading to a massive economic reset in a year.
The Bloomberg senior commodity Strategist has issued a stern warning of the potential “severe economic reset” by May 2024, as he spoke to the host of the finance YouTube channel Wall Street Silver in an interview published on May 4.
Based on a statement by McGlone:
“By the time we speak next year this time, I fully expect we’re going to be in a severe depressionary environment. Unemployment going up, deflation continuing to tick down, and in this current trend, is PPI is dropping at the fastest rate in history.”
The PPI has been dropping at the quickest rate in its 75-year history, as Mike McGlone published on April 27 in a tweet citing Alfonso Peccatiello, the founder and CEO of investment strategy company The Macro Compass. Alfonso said:
“The bond market was pricing almost 200 [basis points] worth of Fed cuts over the next 18 months.”
As the analyst said in the interview, there is similarly “plenty of pressure for the Fed to ease, but they’ll never ease with these ahead, and they’re going to start feeling pressure like we’ve had in the past,” citing “death threats” and “threats to ban the Fed,” as the rate of unemployment keeps rising and impacting the possibility of this reset.
Other Forecasts
In the meantime, Mike McGlone thinks that the trend of gold outperforming silver and platinum will accelerate, as he said normally happens in recessions in the US, projecting its price would increase up to $3,000 per ounce and insisting he sees “nothing that stops gold from continuing to outperform.”
Previously, he has also projected a major pullback for Bitcoin and Ethereum, which he thinks would drop under the pressure of the “overwhelming force of the stock market going down with the Fed tightening into a recession.”
Buy Bitcoin NowNotably, McGlone’s recession forecasts seem to agree with those of Robert Kiyosaki, a renowned investor who doubles up as the author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ who has constantly alerted his viewers of the huge chance of an ‘economic tsunami’ coming to sweep the United States, and the entire world.
Both analysts are bullish on gold, silver, Bitcoin, and Wagyu beef, which Kiyosaki says are all better alternative investments to exchange-traded funds (ETFs), stocks, and fiat money like the US dollar, or ‘toilet paper’ and ‘fake money’ as he mostly refers to the American national currency.