US GDP shrank for the second quarter in a row. On July 28, the Commerce Department reported that GDP declined 0.9% between April and June.
The United States has been in negative GDP for the first six months of this year, which traditionally means it is in recession. According to the Bureau of Economic Analysis (BEA), the first quarter figure stood at -1.6%.
However, the Biden administration has done everything possible to avoid using the term to negate the economic chaos going on around it.
Biden Torture on Twitter
US President Joe Biden downplayed the disappointing economic report, saying it did not appear that the US had entered recession in Thursday’s speech at the White House.
The septuagenarian Democrats took the swipes and media reports saying the country was technically in a recession.
I’ve never seen Biden moving faster than today, when he said, “It doesn’t sound like a recession to me…” and immediately ran away from reporters. pic.twitter.com/fGT7PwuuC5
— Tim Young (@TimRunsHisMouth) 28 July 2022
Columnist and author David Marcus commented, “It’s reassuring to lie in such a cool and grandpa way.” Senator Ted Cruz said, “Live from the White House, Biden’s economy is really having a happy time, and things are going great!”
According to reports, Twitter was flooded with similar comments about Biden’s outright denial, quick exit and refusal to answer questions.
In addition, it is reported that Wikipedia changed its definition of slowdown before locking the page in further editing.
Wikipedia changed the definition of recession in favor of the Biden rule, and then locked the page. pic.twitter.com/2HvzsavWbu
— kernovich (@kernovich) 28 July 2022
Earlier this week, the International Monetary Fund warned that a global recession was likely in 2023.
crypto market reaction
Despite the country being technically bearish and inflation at a high of 9.1%, the crypto markets are in the green today.
According to CoinGecko, the total market capitalization rose by 3.9% on the day to reach $1.15 trillion. Since the low of the current cycle on June 19, the markets have gained about 34% from their current levels.
The news followed the bitcoin price rising above $24,000 for the first time in seven weeks. BTC is now up 16% in the past fortnight. Ethereum is currently outperforming its bigger brother with a gain of 5.3%, sending ETH price to $1,730 at the time of writing.
Recession or not, the macroeconomic outlook for the remainder of this year is gloomy with a cost of living crisis, rising fuel and energy prices and rampant inflation around the world.
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