Global Recession Imminent, Everyone Agrees

Remember: this was all totally unnecessary.

It was done on purpose, and they are making it worse on purpose.

RT:

The globe will slide into a recession next year as a number of economies will contract due to surging borrowing costs introduced to combat inflation, the UK-based Centre for Economics and Business Research (CEBR) has predicted in its latest report.

The world economy surpassed $100 trillion for the first time ever in 2022 but will stall in 2023 as “the battle against inflation is not won yet,” while regulators will keep raising interest rates, the consultancy said in its annual World Economic League Table.

“We expect central bankers to stick to their guns in 2023 despite the economic costs. The cost of bringing inflation down to more comfortable levels is a poorer growth outlook for a number of years to come,” the director and head of forecasting at CEBR, Kay Daniel Neufeld, wrote.

The report’s conclusions are more pessimistic than the most recent forecast by the International Monetary Fund (IMF), which predicted in October that more than a third of the world’s economy will contract in 2023.

It’s a total joke to claim that there is no solution to inflation but to raise interest rates. No one thinks that is true. It would be very easy to just let the inflation happen, and keep the economy afloat. Wages go up with inflation. It’s not ideal, but it’s a lot better than just totally crashing the economy. Crashing the economy isn’t going to stop inflation anyway.

You’d be surprised how few people are able to grasp this. I have people come at me like “OH YOU DON’T UNDERSTAND ECONOMICS HAHA YOU DON’T KNOW WHAT YOU’RE TALKING ABOUT HAHA.”

Basically, yes, it is the basic Keynesian thing to raise interest rates to reduce inflation. That is the basic thing everyone is taught in high school. However, the economy is such a disaster, and the inflation so monumental, that it is not going to be solved this way this time.

Extreme inflation is a small problem in comparison to total global economic collapse. Inflation could be slowed by simply not printing all this money. You don’t have to reverse it. You can set new prices as the norm. Countries have done this since forever. There is always inflation anyway.

This government is doing interest rates at the same time they are printing these insane omnibus bills, at the same time they are collapsing the global energy market with their lunatic Russia sanctions.

The only possible conclusion is that they are doing this on purpose.

They made every bad decision in order. In order to believe that they actually think raising interest rates is going to fix inflation, you would also have to believe they never thought printing all those trillions during coronavirus and shutting down the global economy was going to cause inflation in the first place.

As the United States of America shows 9.1% inflation NEVER forget what YOUR leaders and the media said in the past year

Yellen: "I really doubt we will see an inflationary cycle"

Biden: "I don't know anybody that is worried about inflation"

Biden Dec 2021: Inflation has peaked pic.twitter.com/2SAWgMnYNT

— Mr. Anderson (@TrueCrypto28) July 13, 2022

But hey – who knows?

Maybe they’re that stupid.

They seem to have thought these sanctions would actually hurt Russia.