We Are NOT Scaremongering, But You Should Be Gripped By Fear of a Global Recession Right Now

Photo: AP

Is a recession coming? The very nature of time assures us that, yes, sooner or later, a recession—like all events—will come. But should you be riddled with anxiety about a recession coming soon? Also yes.

ITEM: The yield curve, a chart that measures two basic numbers but which sounds very sophisticated, has inverted in the UK for the first time since 2007. Yield curve inversion is traditionally a recession warning because it means that investors expect the near future to be worse than the far future. Memorize this phrase: “Yield curve inversion.” Now you’ll sound smart at the next party you go to, which will be in a homeless shelter.

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ITEM: But is the yield curve inverted here in the U.S., the engine of the global economy? Yes.

ITEM: Germany’s economy contracted in the past quarter, and Europe’s only responsible nation is “teetering on the edge of a recession.”

ITEM: Argentina’s stock market fell 48% IN A SINGLE DAY this week, one of the biggest one-day drops of a national stock market in modern history.

ITEM: The percentage of big investors expecting a recession is now at an eight-year high.

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ITEM: Bank of America puts the chance of a U.S. recession in the next 12 months at one in three, which is vague and goofy, but in Economic Forecaster Language that is quite a strong warning.

ITEM: Economic analysts say that an escalation of the U.S. trade war with China would likely propel the U.S. into a recession within a year. So, nothing to worry about as long as you trust the Trump administration to be reasonable, wise, and prudent.

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ITEM: “When assumptions about how the world works are shattered, a global downturn is often the result.”

The good news is that since this recession will afflict the entire global economy, there will be nowhere to hide.

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If you are looking for something to distract you from this anxiety, find a quiet place, turn on some relaxing music, and contemplate the fact that CEOs are paid 278 times the salary of their average employee.

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About the author

Hamilton Nolan

Senior Writer. Hamilton@SplinterNews.com