Julia Coronado: Recession in the U.S. Would Trigger a Global Economic Downturn

by | Apr 6, 2023 | Recession News | 18 comments

Julia Coronado: Recession in the U.S. Would Trigger a Global Economic Downturn




Julia Coronado, founder of MacroPolicy perspectives, and Greg IP, Wall Street Journal chief economics commentator, join ‘Squawk Box’ to discuss whether developed nations’ economies are affecting the global economy and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO: 

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The United States economy is one of the largest in the world, and its performance has a significant impact on the global economy. If the U.S. goes into recession, it will undoubtedly have a ripple effect on the world economy. This was highlighted by Julia Coronado, the founder of MacroPolicy Perspectives, who stated that if the U.S. goes into recession, the entire global economy goes into recession.

A recession in the United States would mean a significant drop in economic activity, leading to a slowdown in consumer spending, business investments, and job creation. This would not only impact the U.S. economy but also affect the global economy as it would lead to a decrease in demand for goods and services globally. The U.S. is a significant player in several global supply chains, and any disruption in the U.S. economy would lead to disruption in the global supply chain, impacting businesses worldwide.

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Furthermore, the United States is also a major importer and exporter, and any decline in demand for products and services would affect trade with other countries. As a result, countries around the world will be affected by a slowdown in U.S. trade, leading to a decline in their economic growth rates.

In addition to the above, the U.S. dollar is the world’s reserve currency, meaning it is the most commonly held currency by central banks worldwide. A recession in the United States would lead to a decline in demand for the dollar, affecting its value on the world market. This would impact countries that rely heavily on the U.S. dollar for trade, such as oil-producing countries that price their oil in dollars.

Moreover, the United States is a hub for international finance, and the U.S. stock market is the largest and most active in the world. A recession in the United States would, therefore, lead to a decline in the global stock market and, in turn, lead to a decrease in the value of investments held by individuals and businesses worldwide.

In conclusion, a recession in the United States would have far-reaching consequences for the global economy, leading to a decline in demand for goods and services, disruption in the global supply chain, a drop in global trade, a decline in the value of the dollar, and a decrease in the value of investments worldwide. As highlighted by Julia Coronado, the founder of MacroPolicy Perspectives, if the U.S. goes into recession, the entire global economy goes into recession. It is, therefore, essential for countries worldwide to keep a close eye on the United States’ economic performance and act to prevent any potential recession.

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18 Comments

  1. Angus M

    LOL…The Fed caused inflation and now they can't control it.
    Here's a novel idea….how about we END THE FED.

  2. Gopi Chalapathi

    Nope… other nations already sold most of their forex reserves and bonds as well… which will make USA to return the gold back to them.. and central banks of other nations are buying gold aggressively..soo this time USA and EU will suffer recession more than others do… coz in 2023 most of the nations will reduce using dollar for trade which will make USA to reduce their repo rate and the value will go down as well..USA has to let go of theri dollar hegemony ..they must reduce their dollar value .. they must stop thinking that other nations will do whatever they have commanded them to do..well its for the greater good… everybody will be in peace if USA and EU lose their grip over the world

  3. Benjamin Steel

    Given how things are going, I think I should view a video on "How to survive the current recession." Really, it's a total disaster. I was shocked to see that some people may still make more than $100,000 in a short amount of time. If this is still the case, tell me how, please.

  4. jimmy roman

    my ex-wife losing 45,000 in her 401 k plan and is paying 8bucks for Bacon etc etc etc gas border this administration is not doing their job and the people that claim they are are insane

  5. J Valentine

    That is true but there is some countries that are less affected by the down turns . Where I live 2008 melt down had a lesser impact than in the US . However this time there is more widespread Global factors so it could be worse this time . I took the opportunity during very low interests rates to pay off all my debt . So while I am experiencing higher food and fuel costs etc. I am also making more from higher interest rates which helps balance it out . In my area we are not seeing a down turn in housing prices yet as a house local to me just sold for $10 000 000 which was normally valued at about $ 5 000 000 ! We were shocked . Not sure what is happening there but I think lots of immigrants are coming here to live and have lots of money to spend and there is also an exodus from the big city to this sort after area . I don't see house prices dropping much in my area unless interest rates go nuclear . I also convinced my daughter to open a mortgage offset account and throw every bit of money in there as she could and now it's paying off big time .

  6. Jim Lawrence

    It's not complex it only has to be complex to hide the source of most all human generated misery stemming back to the sumerians, that is Monopoly over economy and monetary system. But of course mainstream media is part of that Monopoly, do you think they're actually going to call themselves out? LMAO. Your entire academic system operates on Monopoly why would they also tell you the true source of misery and point to the Monopoly when they are a monopoly within the greater Monopoly of the world Monopoly.

  7. Theresa wall

    stop depending on the government
    Learn how to channel your salary to an investment to make more profit with your monthly salary.
    I have tried about four investment platform but Miraveststock is the best so far, they pays me very fast, they are very reliable reachable unlike Eminfx and the rest of them, not really about the profit but your investment is 100% secured.

  8. Razak Kalik

    With the exception of Russia..

  9. willyD200

    This rigged system has destroyed many innocent people. The citizens are tired of this blatant scam. Revolution is coming and it's not going to be nice.

  10. Godfrey Montgomery

    in this difficult periods , the recession ,inflation, I'm currently investing in crypto & this made me my first million with the help of a licensed US broker,Valerie Scott She trades for me. I met her at a trade seminar in NY & she agreed to trade for me. I recommend her to investors looking to work with a broker too.

  11. Troy Longbrake

    If the U.S. goes into recession, the entire global economy goes into recession To late hahah cool aid any one want some more cool aid. If Joes folks keep the narrative up we are not in any Trouble EVERY thing is wonderful HAHAHAH cool aid drinking at its finest. Is it grape or lemon flavored Joes favorite drink for the fools.

  12. Tom

    Ya everyone but Australia

  13. Chris Edward

    IF??? We are in a recession. Your denial is weak.

  14. Elizabeth

    I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 80k in stocks (with the help of my Financial Advisor of course) and made about 246k, but guess what? I put it all back and traded with her again and now I'm rounding up close to a million.

  15. Larry Smith

    My heart just keeps thanking you and thanking you #Drosaba for all You have done for me,you gave me your words that you could heal any sickness or disease thank you for permanently curing me of my herpes virus you are amazing

  16. AJ

    Did he just say the holders of the world's reserve currency aren't bothered about the world.

  17. A L

    lol these assholes just keep changing the definition of a recession, WE'RE ALREADY IN A RECESSION.

    Thanks for nothing Biden!

  18. 500k_Floor

    We are in the middle of the biggest heist in history between the banks and the common folks. The 1% are going to squeeze every last dollar out of the 99% using tactics such as securities fraud, insider trading, and inflation because there is little to no penalty for doing so. An article was just released stating that Barclays sold 18 billion dollars of non existent securities to investors in January of last year, and guess what the fine was. A whopping 1 billion dollars! If I could rob a bank every year and pay a fine of 5% with no jail time, you're damn right I would do so.

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