the Global economy is in a worse position that you could imagine in 2008. And, it seems that the global slowdown is gaining momentum in the run-up to 2020. And all this is happening, despite the fact that Central banks around the world cut interest rates and poured huge amounts of money in the financial system. Apparently, the Central banks losing control. So you need quite a bit to the next crisis turned into a complete nightmare. The US economy has not suffered as much as the economies of Asia and Europe, but here, everything slows down. Corporate earnings fell quarter after quarter, the overdue debt on auto loans reached a record level.
the Cass Freight Index declines 11 consecutive months, have just been marked by the largest decline in industrial production in the United States since 2009. Everywhere continuous bad economic news, but most Americans do not notice what is happening.
However, there are at least 5 signs that the global economy is approaching a recession.
car Sales are falling
this year global car sales expected to decline 4%, to 3.1 million, according to Fitch. According to CNN, this will be the biggest reduction since 2008 when the financial crisis hit, and the second consecutive year of falling sales. Fitch expects global sales of cars will be 77.5 million in 2019.
World trade continues to fall
Total world trade declined at an annual rate 4 months in a row. In September it decreased by 1.1%. It was the fourth consecutive decline on an annual basis, and the longest period of falling trade after the financial crisis in 2009.
CPB notes that a major obstacle to international trade volumes were failures in the supply chain between the US and China, mainly due to the commercial war. In September, the U.S. trade volumes fell 2.1%. Imports into China fell 6.9% for the month.
As you can see from these two examples, such poor economic performance not seen since the last recession. However, the world is still in the very early stages of a new recession.
the Global economy is in a worse position that you could imagine in 2008.
Fall in profits of Chinese enterprises
Total profit of China Industrial Enterprises in October fell to 427,5 billion yuan in September, it amounted to 575,6 billion yuan. This decline of 9.9% compared to last year, the biggest drop in history. In fact, in the industrial sector of China there is a decrease in profit for 4 of the last 6 months.
Trade war has hit hard the Chinese economy. However, apparently, soon a bargain will not take place.
consumer Confidence in the US fell four consecutive months
According to The Conference Board, consumer confidence in November fell for the fourth straight month, as economic conditions weakened to the end of 2019.
a consumer confidence Index this month fell to 125,5. In October, he was 126,1. Economists surveyed by Dow Jones had expected the index to rise to 126.6.
It's not supposed to happen. If this continues, all this will have important implications for the elections in 2020.
Wealthy people begin to save
Even the rich cutting their spending. According to Yahoo Finance is the trend of the last three quarters.
the Expenses of the richest 10% of the population fell by 1% in the second quarter compared to the same period last year, according to the data analysis of the fed. The average cost of those with high incomes over the last 3 quarters has fallen in comparison with last year, which was the first such decline since the great recession of 2007-2009.
In recent years, global Central banks have undertaken unprecedented intervention, trying to prevent the next crisis. For some time their efforts have borne fruit.
Yes, the coming crisis could delay the. But not canceled.
in fact, the last few years, long-term financial problems worse. The world is facing the largest debt bubble in the history of the planet, global financial markets are now more prone to collapse than ever, around the world ignite civil unrest. The soil for the "perfect storm" is ready. However, the majority of Americans absolutely do not know what awaits them. Never before has the situation does not look so ominous as now.
So it's time to fasten your seat belts: in the coming months, we are all in for the ride on a very bumpy road.
