5 of the world’s biggest economies are at risk of recession

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> China’s massive economy is growing at the slowest pace in nearly three decades as the country wages a prolonged trade war with the United States, which will impose new taxes on Chinese exports in September and December. And this why US media can’t be trusted – their framing of issues always externalizes blame. It’s not China who’s been waging a trade war, it’s the US. Just as Iran is not flaunting the terms of the nuclear deal, that’s the US. Even a supposedly ‘anti-Trump’ or ‘Democratic’ medium like CNN employs a postmodern bending of words that’s usually associated with the right, and so can’t bring itself to be fair with its audience. The problem with the governmental system in the US in a nutshell.


Well that is a short article that seems to lack substance. For so long as we push public confidence higher than the equilbrium between aggregate investment and GDP, we will have bubbles, both Hayek and Keynes agreed on this. While Hayek did not seem correct on many things, one area history has demonstrated him correct over the last 40 years is that for every bubble there is a contraction. The greater the bubble, the greater the contraction will eventually be. This understanding is why many of the world’s wealthy actively pursue an economic strategy of waiting until a contraction hits rock bottom, and then buying up real investments for low prices. Dozens of reasons aside a contraction is always coming, the positive economic evidence on that is clear. The question I think should be answered is what ratio of wealth inequality is optimal for a faster recovery? Because from what I see the biggest problem is that contractions facilitate a drastic negative derivative on aggregate demand, not on elasticity of various markets but specifically on the average or median person’s ability to afford good/services that create the velocity of money in a given economy. We have seen governments use surplus policies as a theory for this before, but I think debt forgiveness and write off might be the best way to go with a focus on homes and education, or perhaps subsidies offering relocation as a means to develop undeveloped land.


Not sure for other biggest economies, but for the US. The inverted curve simply means the fed has to cut rate more aggressively if they really want to avoid recession. However, a brief recession doesn’t mean there will be a financial crisis nor >30% drop in stock market either.


Actual question because I don’t know any better: Aren’t recessions inevitable/part of the economic growth cycle?


The Federal Reserve doesn’t lower interest rates when the economy is doing well. There will be another surge in the stock market come September when the federal reserve lowers interest rates again but they’ll almost be back to zero after that. Inflation is taking place and has been for a while now. Buy gold.