Growing Concerns of Recession Result in Mounting Doom and Gloom across the US

by | Aug 1, 2023 | Recession News | 26 comments




The Australian’s Washington Correspondent Adam Creighton says there is “doom and gloom” in the US as fears grow for a recession, with the cash rate continuing to climb.

“There’s been lots of doom and gloom over here – the cash rate, the interest rate here – has gone from basically zero to 4.75 per cent in about 12 months, that’s a very rapid increase,” Mr Creighton told Sky News host Sharri Markson….(read more)


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Title: Doom and Gloom in the US: Fears Rise for a Looming Recession

Introduction:
As the US economy continues to show signs of stress, concerns about an impending recession are intensifying. The “doom and gloom” sentiment has begun to cast a shadow over various sectors, with policymakers and economists closely monitoring the situation. This article delves into the underlying causes and potential implications of these faltering economic indicators, as fears mount for a recession in the United States.

Weakening Economic Indicators:
Key economic indicators are raising red flags and fueling anxieties about a potential recession. One crucial indicator is the inverted yield curve, where long-term interest rates fall below short-term rates. This inversion, seen for the first time since 2007, has often preceded previous economic downturns. Moreover, manufacturing activity, a critical driver of economic growth, has shown a slowdown. The purchasing managers’ index (PMI) dropped to below 50, signaling a contraction in the sector.

Trade Wars and Global Economic Slowdown:
The ongoing trade war between the US and China is amplifying concerns about a forthcoming recession. The uncertainty surrounding tariffs and trade policies is impacting businesses’ decision-making processes, leading to reduced investments and a decline in productivity. As trade tensions escalate, global economic growth is also facing headwinds, with several major economies experiencing a slowdown. This interconnectedness leaves the US economy susceptible to external pressures, jeopardizing its stability.

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Consumer Confidence and Retrenchment:
Consumer confidence plays a significant role in supporting the US economy. However, recent surveys have shown a drop in consumer sentiment amid rising fears of a recession. These concerns translate into reduced spending, dampening demand and negatively impacting businesses across various sectors. As consumers tighten their belts and adopt a more cautious approach, the economy could face contraction, leading to unstable markets and potential layoffs.

Monetary Policy and Government Response:
In response to the looming threat, the Federal Reserve has embarked on a series of interest rate cuts to stimulate economic activity. Lowering interest rates can encourage borrowing, boosting investments, and spurring economic growth. However, the effectiveness of these measures is limited, as interest rates are already at historically low levels. Additionally, the government is considering fiscal stimulus packages to mitigate the impact of a potential recession, focusing on infrastructure development and tax cuts.

Implications of the Recession:
If a recession occurs, it could have far-reaching consequences across various sectors. Job losses, reduced consumer spending, and an overall decline in business activity may lead to a downward spiral, affecting corporate profits and investment opportunities. Stock markets may experience increased volatility, eroding investor sentiment and weakening retirement savings. Furthermore, the housing market, banking sector, and global trade flows could face significant disruptions as a result of a downturn, exacerbating economic challenges.

Conclusion:
The specter of a recession is looming large over the US economy. With weakening economic indicators, trade wars, and retrenchment fears, the potential for an economic downturn cannot be overlooked. While policymakers and authorities are taking measures to counter the potential impact, the long-term implications of a recession, if it materializes, could be substantial. Remaining vigilant and proactive in implementing targeted policies and fostering an environment of stability are crucial to addressing these concerns and minimizing the fallout of a possible recession.

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26 Comments

  1. Elvis mark

    I believe I should watch a video on "How to survive the current recession" given the circumstances. Really, it's a complete failure. That some people could still earn more than $408k in a short period of time astounded me. If that's the case, would you kindly elaborate?

  2. Jacob Elliott

    The idea is to crush the economy remember? To re do capitalism after the crisis, sky news is absolutely useless

  3. regan dunn

    They will reword the meaning again to protect the old man

  4. Roger Moore

    Try a global depression. Wake up and pull your heads out.

  5. Bridget Watkins

    I'm so opportuned irrespective of the economic crisis and financial conditions I am still able to earn $33,500 returns from my initial $6,500 every 10days

  6. Gregory Jones

    It’s a result of the neoconservative sanction war. They need to switch their focus from starting wars around the world and get on with it, total dicks and Chalmers is the biggest!

  7. Salty Sassa

    We've been in a recession for 18 months. It is moving to #Depression

  8. Zog696

    Thanks Brandon.

  9. Ghastly_Grinner

    If anything they are raising rates way too slowly

  10. Meaghan Simpson

    USA FED RESERVE AND WALL STREET BANKS are globalists psychopaths central greed heads on zombie pills yeah profiteers of SickoCare for everyone on earth from womb to tomb!
    TYRANNY is rampant and all the politicians are warmongers profiteers all owned along with boob tube mainstream TV and Big Tech, by the biggest most fraudulent corporations in the world yeah they all heavily invested in death & destruction 24/7!!! Governments are all mostly corrupted to the core. Tyranny in like Communist. . Tyranny in like
    Fascist. Tyranny like Nazi. NWO, WEF, WHO, BIG TECH, BIG POISON PHARMA, BIG FAKE FOOD,

  11. Strategic Viewpoint

    No worries mate, got billions of dollars for Ukraine. What recession?

  12. Bullshit Stomper

    Well it’s coming to Australia so these Freemasons like Andrews Albosleezy and the other pork chops all gotta go

  13. liberty ranger

    The chances are 100% the us will have a recession when more than 50% of yield curves are inverted its always lead to a recession.

  14. Eddie Mertin

    There is a big transition to get through. Find what you can by Harald Malmgren, he's been heavily involved in US trade and investment policy for over 50 years. Long story short, nobody finds Xi trustworthy anymore and there's a mad rush to the exits. Industry 4.0 and additive manufacturing is coming and it'll be a boom before long.

  15. William Wilson

    Yea because it a planned event

  16. Phoenix Enterprises

    Doom and gloom…blah blah…we been living it. I'm sure not going to wait for a news agency to tell me I'm dead.

  17. stenka rasin

    The US recession is entirely the result of electing Biden and the Democrats. All the talk about it being the war etc. is pure bull shit.

  18. Peter Burke

    America is below third world.. they have been in recession for twenty years. They constantly fudge the numbers and can’t be trusted.

  19. Wolfie

    Top tier reporting

  20. chris hinder

    Lots and lots of fear agenda hey. That's all that is happening in Australia and this world. All done deliberately cause they get off watching the people suffer. No other reason. This is what Australians should be doing right now.
    https://youtu.be/MsJQVjN9gGA

  21. Yolanda Scholten

    So does this mean someone is going to finally say it?? ……. Like use the word??

  22. Raven 1899

    It's not a recession, it is a catastrophe.
    1. US National DEBT is $31.3 trillion (Federal Reserve) with trillion dollar fiscal and trade deficits accelerating.
    2. The US Unfunded DEBT is approximately $93.3 trillion (Federal Reserve).
    3.The US Unfunded LIABILITIES is approximately $172.9 trillion (Federal Reserve).
    4. US DEBT Held By Foreign Countries is approximately $7.2 trillion (Federal Reserve)
    5. The Interest Payment on the Debt and Liabilities exceeds the Nation's Tax Income … In other words the Debt and Liabilities are 'Unserviceable' … America is 'Insolvent' … And the Dollar is 'Junk' … A Crisis of Confidence!
    6. Petro dollar finished, Rise of Petro Yuan after recent visit by Chinese President's huge welcome in Saudi Arabia.

    "Remember that inflation is not an act of God, it's a government policy." Ludvig von Mises

    "The Fiat currency eventually returns to it's intrinsic value – zero" Voltaire

  23. Jenny Ohara

    For Most Americans, the recession has been going for years…Australia is Rubbish as well…Centrelink keeps most from starving

  24. chairman dan

    Fears a recession, too late, it's happening!!!

  25. Bro

    Have a lockdown

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