A leading economist has suggested that the US is already in a recession after President Joe Biden racked up trillions of dollars in debt.
Speaking to GBN America, Dr David Brat said the "underlying economy is awful" as the Biden administration continues running up $2.5trillion in deficit per year.
The former Congressman said: "We are in a recession, right? If you strip out government spending, which is expansionary, we still have $8trillion on the federal reserve balance sheet, which was expansionary.
"The increase in the money supply kept interest rates low and kept the economy moving.
A leading economist has suggested that the US is already in a recession after president Joe Biden racked up trillions of dollars in debt.
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"OK, so now they're tightening M2, the money supply is going down, but who steps in to save the day and provide the stimulus now in order to support your favourite political class, namely the Democrat Party?
"Again, all views are my own, but now what are we doing? We're running $2.5trillion deficits per year.
"This is Congressional Budget Office, you can go look it up, they have us at $50trillion in debt.
"In 10 years, it'll be more than that, right? Because that was predicated on 1 and a half trillion deficits.
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"We're at two and a half trillion right now, and that's for the next 10 years. The CBO (Collateralized bond obligation) also has us growing at one and a half per cent GDP growth for the next 20 years because they also have productivity growing at one and a half per cent for the next 20 years.
"And productivity, the amount of stuff you make per hour, is GDP growth, right? And so it's really bad, the underlying economy is awful, what we call the real economy.
"Pay attention to manufacturing making stuff, that economy for small business and the business people is awful."
A European bank has previously shared its concern over the US economy slipping into recession this year – which could lead to the Federal Reserve bringing in steep interest-rate cuts.
Speaking to GB News, Dr David Brat said the "underlying economy is awful" as the Biden administration continue running up $2.5 trillion deficits per year
The Swiss-based UBS said that it's expecting the Federal Reserve to respond to falling inflation and an economic slump by cutting rates by an eye-popping 275 basis points.
Brat added: "The Government just takes two and a half trillion dollars loan out from your rich uncle, shoves it over here in the GDP account called government spending.
"Keynes, we got him from you too, right? Keynesian economics, you shove two and a half, that counts as GDP growth. Really? And they call that investment. If there's so much investment, why we're growing at one per cent next year? So it's a joke, right?
"We should be in a recession, the real economy is in a recession."
