Is a Recession coming

Is a Recession coming

In today's blog, I want to discuss with everyone a very important subject. This subject is going to be something everyone needs to read up on because it's going to affect everyone around the world no matter who you are. Now if any of you who read up on economics you would know that many experts are having discussions on whether the world economy is coming to a crash. Now I do believe that recession is on its way and that it's coming very soon. I believe sometime before the half of the 21 century so likely between 2030-2049. That's why in today's article I want to discuss why I believe this is going to happen. So without furthermore let's dive into the article.     

Hyperinflation

Since the start of the pandemic, we have entered a new era in economics. The governments around the world since the start of the pandemic have relied on printing money and handing out stimulus to keep the economy of the countries pegged up. Most of the west is experiencing this inflation. However other countries mostly third world countries are experiencing inflation on another level than what the first world countries are experiencing right now. The current inflation rate in the United States is already taking a bite out of the economy and the country hasn't even hit hyperinflation rates yet. If money keeps getting printed at the current rates we are going to experience some sort of hyperinflations whether that means on levels as bad as Venezuela or just a temporary setback until our next topic of discussion is fixed.      

Supply chain issues

With the pandemic causing a labor shortage and a material shortage the supply chains of the world have been messed up and very slow. Now there are many key reasons as to why this is happening besides what I just talked about. One is that since the start of the pandemic china where the virus originally came from has been in lockdown since the start of the outbreak. Which has caused many supply chains to be stalled or slowed since china is one of the largest manufacturers in the world. Second is there is a lot of consumer demand as of right now for everything on the market from Components to food to consumer goods has been selling out. Then finally third is the recent war in Ukraine has caused the Worlds economies to cause essentially a financial war with Russia which has further put strains on the global trade and energy system.  

Overvalued assets

With inflation at all-time highs in the west, many have flocked to assets to keep the value of their dollar. However, this has led to an asset bubble in 2022 in nearly all markets except the commodities market. The asset market to see it the worse is the real estate market. The pandemic has driven the housing market up in the united states at rates that haven't been seen in years. Leading many to believe that it's a certain amount of time before this bubble pops and the market comes crashing back down. Another market that many experts deemed overvalued is the stock market. In 2020 and 2021 the market grew tremendously leaving many after rebounding from the initial pandemic crash. Which leads many experts to believe that the stock market is overvalued and might soon come crashing down with the housing market. Or it's possible the stock market crashing is what initiates the recession by causing the housing market to crash and then the rest of the markets. 

My Final Words     

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