Whopper..

 

The U.S. economy is going to fall into a recession next year, according to Steve Hanke, a professor of applied economics at Johns Hopkins University, and that's not necessarily because of higher interest rates.

"We will have a recession because we've had five months of zero M2 growth, money supply growth, and the Fed isn't even looking at it," he told CNBC's "Street Signs Asia" on Monday.

In recent months, money supply has stagnated and that's likely to lead to an economic slowdown, Hanke warned.  "We're going to have one whopper of a recession in 2023." 

Meanwhile, inflation is going to remain high because of "unprecedented growth" in money supply in the United States, Hanke said.

Historically, there has never been "sustained inflation" that isn't the result of excess growth in money supply, and pointed out that money supply in the U.S. saw "unprecedented growth" when Covid began two years ago, he said.

That is why we are having inflation now, and that's why, by the way, we will continue to have inflation through 2023 going into probably 2024," he added.