HSBC Fears World Recession With No Lifeboats Left

Posted by Ambrose Evans-Pritchard - The Telegraph

Share on Facebook

Tweet on Twitter

titanic-painting 1962453b

titanic-painting 1962453bThe world authorities have run out of ammunition as rates remain stuck at zero. They have no margin for error as economy falters

The world economy is disturbingly close to stall speed. The United Nations has cut its global growth forecast for this year to 2.8pc, the latest of the multinational bodies to retreat. 

We are not yet in the danger zone but this pace is only slightly above the 2.5pc rate that used to be regarded as a recession for the international system as a whole. 

It leaves a thin safety buffer against any economic shock – most potently if China abandons its crawling dollar peg and resorts to ‘beggar-thy-neighbour’ policies, transmitting a further deflationary shock across the global economy.

hsbc lombard yuan 3316486c

The longer this soggy patch drags on, the greater the risk that the six-year….continue reading HERE