No Longer Speculative a Recession Will Hit Within the Next 12 Months
Wiping out Major Economies
Cristal M Clark
Within the next 12-months the worlds most leading economies will be hit with a full blown economic recession. Whispers of a looming recession have been swirling since last year, many tried to play those rumours down but as of today, the writing is very much on the wall.
President Joe Biden: “there’s nothing inevitable about a recession in the U.S.” Which is pretty much what the Fed has been saying, and we will still see yet another interest rate hike in an effort to stave off rising inflation.
But did it really have to get this bad? Here in the United States the Government is regulating women’s bodies and our rights to choose, why could it not regulate inflation better? I mean honestly this inflation has more to do with greed than actual necessity.
We’ve endured supply chain issues, but got past them, now the cost of goods continues to rise well above that of the wages of your average working class.
Fed Chair Jerome Powell: “The central bank is willing to tolerate a recession if it means getting inflation under control. The bigger mistake to make, would be to fail to restore price stability.”
The other side of that is that we would need to restore consumer confidence, which as it happens is sliding rather quickly. As sad as this to say, a Government could do a lot better at controlling the cost of goods, I am not talking the cost of $195K sports car, I am talking about the cost of things people need just to survive, transportation, most vehicles are simply not worth what people must pay, that Studio loft, is not worth six figures, nor is rent for a one bedroom apartment being over $1,000 per month and food, electricity, fuel, household items such as toiletries and cleaning supplies, all of it has well over tripled starting around 2015 if not before and it has been left unchecked since that time.
These costs should have been kept in check well before Covid hit, the cost of living tripled and in some cases quadrupled that of wages. So this issue could have been and should have been prevented long before we started looking down the barrel of a loaded gun.
Worldwide, individuals will suffer, lose jobs, homes, transportation, companies will be forced to downsize, go out of business and here in the US it’s clear that the publics distrust in both our government and our media is growing to epic proportions, if we hit a major recession, it is unlikely that the public will trust either anytime soon.
In order to get things in line we must stop the price of goods from rising, right but, what about where they stand now? Workers were already not able to afford the cost of living. And a recession all but guarantees, that employers will hire less, in some cases offer lower wages to new hires or lay employees off, all in an effort to keep profits where they are, currently or slightly below.
Which all of that, in turn will allow for companies to gain the upper hand with hiring as we pull out of a recession and once again, not offer to pay living wages to employees.
It’s circle of life greed wins, over living.
Cristal M Clark