The recession hasn’t even started, and we’re seeing massive weakness worldwide and government struggling.

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China’s $18 Trillion Economy – A Deflationary Threat to the Global Economy

China’s economic troubles, including a real estate slump and high Gen Z unemployment, are causing deflation and sluggish growth, which experts like Brendan McKenna of Wells Fargo fear could infect the U.S. and lead to a global economic downturn. Key challenges include structural imbalances, inadequate social security, and unstable international relations. While some believe China’s troubles may not significantly impact the U.S., the situation underscores the complexity and interconnectedness of the global economy, posing a threat to the global economy.

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Western Economies Probably Can’t Escape Inflation Without a Recession

The economic outlook is grim as the former Bank of England economist and adviser to the UK Chancellor forecasted a recession due to necessary high borrowing costs. The lack of confidence among policymakers in achieving a sustainable 2% inflation, combined with persistent concerns about price pressures and the market’s failure to adjust to economic weaknesses, underscores a bleak “higher-for-longer” rate scenario. This dismal outlook is further compounded by the prediction that only a recession can quell the rampant inflation, signifying a dire situation ahead.

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