The US is staring down a fate worse than recession, and 4 other bold forecasts from a top economist

[Yo_Mama_Been_Loggin]

The US has flirted with the dreaded S-word for much of this year, and it's not out of the woods yet.

That's according to Torsten Sløk, the chief economist at Apollo Global Management, who thinks the US is at a critical inflection point for stagflation, a dire scenario in which economic growth slows while inflation remains high.

That problem is often regarded as even harder for policymakers to solve than a typical recession, as higher inflation can prevent the Federal Reserve from cutting interest rates to boost the economy.

The scenario has largely been triggered by President Donald Trump's tariffs, Sløk wrote in a white paper published on Monday.

https://www.msn.com/en-us/money/markets/the-us-is-staring-down-a-fate-worse-than-recession-and-4-other-bold-forecasts-from-a-top-economist/ar-AA1HnAk2

[Doodley]

1. I hope so, even though my own financial situation would be terrible. I think it is the only way to get rid of MAGA.

Last edited Thu Jun 26, 2025, 03:30 PM - Edit history (1)

[OrlandoDem2]

2. Correct. It's going to take a massive crisis to rid America of MAGA. Elections won't do it.

It took a world war to rid Germany of Hitler and Mussolini. It took a massive economic downturn to rid the Soviet Union and Easter. Europe of communism. China had to turn from Maoism after he died and the disastrous cultural revolution ended.

Americans can tell a massive economic crisis is coming. Smart consumers are closing their wallets and limiting their spending. This will be painful but it’s a sacrifice we all must make to wake people up to the horrors of MAGA. They must be politically and economically obliterated!

[ThoughtCriminal]

3. Hyper-Stagflation

The GOP's brew of tax policy and tariffs are likely to lead us to the abyss.

[dalton99a]

4. Trump is making it inevitable.

[SWBTATTReg]

5. Stagflation, a word that I haven't heard since when Japan was struggling w/ this at the time some decades ago.

In a way, I was kind of hoping that perhaps real estate inflation across the board, in many high-priced cities and localities, may start retreating a bit.

But unfortunately, I think, that having so much wealth tied up in fewer and fewer pockets, that demand for these fewer and fewer prime assets is forcing a bidding war for these fewer and fewer assets, the velocity effect of money goes down, and the intended impact of spending money via manipulating the interest rate %s is negated, that it takes the Federal Reserve more to stimulate the Economy.

tRUMP has already screwed up the regular economy w/ his ongoing stupid talk of tariffs and thus choking off one of the tiers of growth in this Country. Also witness the Economy slowed down a lot more than expected w/ these stupid actions by tRUMP in recent news.

So, we have the massive Economic Engine fueled by the Consumers in this Country. They drive the Economic Pumps of this Country.
Some say roughly as much as 60% or so. That's a pretty big chunk. The other tier being choked off is that the federal government is
squeezing out spending tRUMP's cuts and screwups, also his uncontrolled flow of yet more income to the top 1%ers in this Country.

When is enough, enough?

[BadgerKid]

6. The GOP isn't happy until everyone else is unhappy.

[roamer65]

7. The Swiss Franc is again reaching new highs vs USD.

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