Big Short investor Michael Burry warns of another increase in inflation-awaits the United States in a recession after each definition-Economics

hedge fund manager Michael Burry, famous for his prediction of the financial crisis of 2008, says that inflation has reached its peak in the United States, but there will be another inflation boost. He expects the US economy to be in a recession "after each definition".

Michael Berrry's business forecasts for 2023

The famous investor and founder of the investment company Scion Asset Management, Michael Burry, shared his business forecasts for 2023. Burry is best known for being the first investor to have the US subprime mortgage crisis, which appeared between 2007 and 2010, and benefited from it. He is in "The Big Short", a book by Michael Lewis on the mortgage crisis, portrays a film with Christian Bale.

Burry tweeted on Sunday: "Inflation has reached its peak. But it is not the last highlight of this cycle." He continued:

We will probably see a lower CPI, possibly negative in 2H 2023, and the USA is in a recession by definition. The Fed will shorten and the government will stimulate. And we will have another inflation boost. It's not difficult.

Many people on Twitter agreed. Lawyer John E. Deaton tweeted: "I think that's right." The economist Peter St. Onge wrote: "The clever minds agree: lower inflation will be temporary, then the Fed boosts the money printer and makes it again."

The investment specialist Karel Mercx commented: "Michael Burry is right ... Inflation usually comes in waves, and there is rarely a wave (see CPI diagram of the 1970s). The five most dangerous words when investing are still: 'This time it is different.

The investor Kerry Balenthiran agreed and tweeted: "Agree, but the next inflation spurt could end in a decade or longer. It is very similar to the secular bull market from 1947 to 1965. In this case there was a post -war inflation, followed by an inflationary environment that finally reached its peak in 1980."

Some people offered alternative points of view. The former broker Rob Bezdjian, for example, believes that deflation will occur. "I will represent the other side of his inflation forecast ... We will live in a deflation for a long time. Bubbles take a long time to inflate again," he said.

Burry shared numerous warnings about the US economy. In November 2022 he a "extensive recession". In May the Big Short Investor warned about a threatening Consumer recession and other earnings problems. In April he said The Federal Reserve" does not have the intlation too fight ", and emphasizes:" The Fed is only about recharging the monetary armored fist so that it can ride to save and finance the fiscal put. "

Do you agree with Michael Burry in relation to inflation and that the US economy will get into a recession? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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