Nine of the world’s major economies are on the verge of falling into a recession, raising fears that the U.S. may also be heading towards an economic slowdown followed by a global recession.
Economic data from China, Germany, the U.K., Brazil, Argentina, Italy, Russia, South Korea, and Japan showed that spiraling debt and high unemployment could drag them into a recession before the end of this year, exacerbating a global recession and dragging the U.S. along with them.
Listen to GHOGH with Jamarlin Martin | Episode 64: Tunde Ogunlana
Part 1: Jamarlin talks to Tunde Ogunlana, the CEO of Axial Family Advisors, a wealth planning firm. We discuss what an inverted yield curve usually means in the bond market and why Federal Reserve Chair Jerome Powell can’t tell the public the truth when he sees big trouble on the horizon. We also discuss the global economy being trapped between massive debt and a starting place of low rates at the end of the economic cycle. This episode was recorded on May 29, 2019.
U.S. data still shows that the American economy remains stable and held up by consumer spending, but President Donald Trump’s trade war with China is causing uncertainty and discomfort around the world, the Washington Post reported.
“Trump providing more trade certainty would be number one, two and three on the list of ways to help the economy,” Vincent Reinhart, chief economist at BNY Mellon Investment Management, told the Washington Post.
A third of European countries are already struggling economically, with the U.K. seen entering a full recession in the second quarter as its economy contracts due to side effects of the possibility of a “no-deal” Brexit in coming months.
China’s growth has slowed largely due to the trade wars launched by Trump and a full-blown debt crisis.
