America’s Economy on the Edge

Major economies teeter on the edge of recession, with Germany already in a technical recession. China’s post-COVID rebound fizzles, while the US economy faces the likelihood of a mild recession. Labor hoarding and mixed signals complicate economic assessment. Inflation worsens due to continued stimulative policies, prompting rapid rate hikes and potential yield curve inversion. Predictions of a recession abound, but the situation remains unprecedented. Fiscal battles loom in the US, with disagreements over taxes and spending, exacerbating cash shortfalls in Social Security and Medicare. Higher taxes pose risks to short-term stability and long-term prosperity. Economic forecasting faces significant challenges. Bleak outlook persists.