Sign in to follow this  
Followers 0
RA

The Consequences: Full-Blown Trade War Will Push World Towards Recession

Recommended Posts

A collapse of U.S.-China trade talks and hike in tariffs on Chinese goods would push the world economy towards recession and see the Federal Reserve cut U.S. interest rates back to zero within a year, analysts at Morgan Stanley said on Monday. While a temporary escalation of trade tensions could be navigated without much damage at all, a lasting breakdown would inflict serious pain. “If talks stall, no deal is agreed upon and the U.S. imposes 25% tariffs on the remaining ~US$300 billion of imports from China, we see the global economy heading towards recession,” the bank’s analysts said in a note. In response, the Fed would cut rates all the way back to zero by spring 2020 while China would scale up its fiscal stimulus to 3.5% of GDP (equivalent to around $500 billion) and its broad credit growth target to 14-15% a year they added.

Share this post


Link to post
Share on other sites

Tariffs will raise prices on all sides

Share this post


Link to post
Share on other sites

It will only accelerate all the process...

Share this post


Link to post
Share on other sites

Here it comes...

 

image.png.69cd6116425d7500cd63f6ea37bdd531.png

Share this post


Link to post
Share on other sites

I figure that the Chinese will just stop selling to the U.S., other suppliers will raise their prices, and inflation will go through the roof. Commodity prices will never come back down. As usual, the poor will struggle even harder....

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  
Followers 0