Unhinged demagogue and pathological liar Donald "Impeached Forever" Trump is playing the "economy is booming" card for the 2020 elections, the booming economy he inherited from President Obama. But there are signs that the world economy, which is integrated with the U.S. economy despite what America Firster Trump thinks, may be entering a recessionary period. The economies of Japan and Germany experienced contractions even before the spread of the coronavirus sent jitters through markets. Fourth quarter 2019 GDP estimates from the Chinese and Indian economies are expected to show contraction, also:
"All of this brings to the fore concerns about the global economy's ability to withstand a shock from the coronavirus. [Bank of America economist Ethan] Harris says the weak quarter was likely a result of lingering damage from the trade war between China and the United States. The coronavirus is poised to make matters worse.The interdependence of the economies of the major economic powers will mean that if we see a contraction in our economic partners' growth, it will have a ripple effect on our economy. Of course, Trump won't see it coming, and if and when he does, he'll blame President Obama.
'Global equities have rebounded as the US and China have converged to a ceasefire, but companies with global supply chains remain deeply uncertain,' he said.
On the radar: Even the United States may not be in as strong a position as previously thought. IHS Markit said Friday that US services sector contracted in February, with the reading hitting a 76-month low. It's the first time the sector has contracted in four years." (our emphasis)
