In a startling revelation, Michael Hartnett, the Chief Strategist at Bank of America, renowned for his market predictions, has issued a grave warning that the United States is edging towards a recession that could potentially send the economy spiraling into an irreversible downturnHartnett's alarm is particularly concerning given his credibility, often lauded as “the most accurate analyst on Wall Street.”

His analysis paints a bleak picture, with troubling insights into the United States government’s handling of fiscal affairsCurrent projections for 2024 show a staggering federal expenditure of $7 trillion against a revenue of merely $5 trillion, culminating in an astronomical deficit of $2 trillionThis deficit constitutes nearly 7% of the country’s GDPTo put this in perspective, in the past five years, the nominal GDP of the US has surged by 50%, but this economic growth has been critically underpinned by a massive 65% increase in discretionary spending by the governmentThis reliance on public expenditure for growth raises serious concerns about sustainabilityThe prolonged state of high deficits not only exacerbates the government's debt burden but could also ignite a cascade of adverse effects, including turmoil in the bond markets and rising interest rates, thereby further undermining the fundamental stability of the American economy.