Joe Biden said recently that he was not anticipating the US economy to go into recession. But if it did, it would be very slight. I do not know when and where you draw a line between a slight recession and a full-blown one. Your guess is as good as mine. But one thing is certain, things are not looking good for the USA. 

There is no denying that the new decade is off to a terrible start, and things might grow worse. We have been reporting on the possibility of a recession in recent months. Additionally, the estimates are becoming bleaker with each passing day. We'll chat about the US tonight. Economy. Yes, warning signs are flashing in the biggest economy in the world. Here is the headline for today. One of America's largest banks' president has made a statement. According to Jamie Dimon, a US recession is imminent. He had a direct message for all of us. It's serious. What is causing Dimon's concern? The war in Ukraine, significant interest rate increases, and out-of-control inflation. The world will be affected by all of these as they cause the United States to enter a recession. Yes, a recession in the United States would be painful for everyone. In what ways does this affect you and me? 

Let's first take a closer look and explain what is really going on in the US. Economy. The atmosphere is undoubtedly not positive. Let me explain why. Recently, some surveys were released. Almost seven out of ten Americans claim to be concerned about a recession. Four out of ten people claim they are not financially equipped to handle one. If a recession occurs before the end of 2023, that is. The business community is also worried. Over eight out of ten CEOs believe there will be a recession over the next 12 months. KPMG carried out an audit. More than 1300 CEOs of the biggest firms in the world were interviewed. 73% of respondents think that a recession will impede development. A hiring freeze has been enacted by about 39% of CEOs, and 46% are thinking about reducing their workforce. But what motivates them? The US. The economy is sagging. The United States GDP is declining. Growth was 6% between January and March of this year. It dropped to zero by 6% in July. The contraction is therefore obvious.

A horrible period is currently affecting Wall Street. The S&P 500 reached its lowest point at the end of the third quarter in over two years. The Nasdaq has already fallen by close to 33% this year. Over 20% of the Dow Jones has been lost. The effects of the recession are already starting to affect the populace in the US. In the past year, mortgage rates have more than doubled. You are aware of what that indicates. Many Americans who wished to purchase homes won't be able to do so. Why should any of this matter to us all? Because the globe would suffer if America entered a recession. The negative consequences of a financial shock in the US are unbounded. If the US finds the political desire for additional bailouts, it eventually has the policy space to support both its banking system and its economy. However, there is no actual safety net in place in the majority of nations, particularly in the south.

I'll make this simple for you. The world we live in is interrelated. Thus, once the US economy enters a recession, pressure will build on the world economy. America may be able to afford a corporate bailout, but the rest of the world is unable to. Many developing nations are under a heavy financial burden. Concerning this, the UN is raising an alarm. According to a UN analysis, there are serious debt concerns in at least 54 emerging economies. They account for 18% of the world's population. Over 50% of people are extremely poor. How large is this debt mountain? Some estimates have the debt owing by the developing countries in 2021 at over $11 trillion. The major risk is that. There are shortages and inflationary pressures on the one hand, and a mountain of debt on the other. Even the International Monetary Fund is worried about how the world economy is currently doing.

The global economy is like a ship amid rough seas. To steady the ship and find our way through what is ahead, we need all the knowledge we can muster. We experienced shock after shock after shock in less than three years. COVID came first, followed by Russia's invasion of Ukraine and global climate catastrophes. The lives of people have been severely harmed by these shocks. Their combined effect is producing a cost of living crisis by driving up prices globally, particularly for food and energy. And the fragmentation of geopolitics makes it more difficult to deal with them.

The largest problem now is geopolitical fragmentation because a divided world threatens the world economy. Here's an illustration of that. The US and China's great power rivalry is becoming worse, and it might have an impact on the next gadget you buy. America has declared significant modifications to its export laws. Chip exports to China are regulated. Certain types of semiconductors could no longer be sold to China without a licence. Additionally, a ban has been implemented. Chinese corporations won't be able to purchase supercomputer and artificial intelligence chips from US businesses. Beijing disapproves of Washington's actions.

The US intentionally blocks and represses Chinese enterprises through export control laws in order to retain its high-tech hegemony. This behaviour breaches international economic and trade regulations and departs from the idea of fair competition. In addition to hurting the legitimate rights and interests of Chinese businesses, it will also have an impact on those of American businesses.

These days, chips are everywhere. In your car, tablet, phone, and even in your medical equipment. The majority of technology is still manufactured in China. Around 90% of the electronics produced worldwide, according to one estimate, are produced in Shenzhen. One city in China supplied the entire world prior to the Pandemic. The restriction on American chips might significantly alter that figure. Your gadgets may become slightly more expensive, at least temporarily, if less supply passes via China.

The US economy is going into a recession

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