Countries around the globe are continuing to struggle with record-high inflation. As conditions worsen, experts question if a global recession would be enough to choke off inflation. Now, Ray Dalio is warning that it looks as if the U.S. and China are “dangerously close” to a war that would crush any economic growth we’ve made.
The Economist via Business Khabar
Even a global recession may not crush inflation
Investors have swooned at the good news. Since early October, European shares have risen, with optimists declaring an end to the continent’s energy crisis in sight. Chinese stocks have jumped at recent talk that Xi Jinping will abandon his “zero-covid” policy, and as regulators have loosened their curbs on the property sector. On November 10th, on the news that America’s consumer-price inflation had come in slightly below economists’ expectations, the tech-heavy NASDAQ index rose by 7%, one of the biggest daily moves ever, as investors priced in lower interest rates.
But take a step again, and the outlook for the worldwide economic system has in reality darkened in current weeks. The economic system is slowing, maybe right into a recession, as central banks ramp up rates of interest to battle a once-in-a-generation surge in costs (see chart 1). Even with one month of better-than-expected information for America, there’s scant proof inflation is anyplace close to defeated (see chart 2). Indeed, in a lot of the world it’s broadening out.
You can read the full story, here.
Business Insider/George Glover
Billionaire investor Ray Dalio warns the US and China are ‘dangerously close’ to a war that would crush economic growth
The US and China look like they’re moving towards a military conflict over Taiwan that would crush economic growth, influential investor Ray Dalio has warned.
The Bridgewater Associates founder said the threat of war is already weighing on the global economy – and that the two superpowers are dangerously close to escalating ongoing tensions into a full-blown military conflict.
“The United States and China are now in a trade war, a technology war, a geopolitical influence war, and a capital/economic war, and they are now dangerously close to a military war,” Dalio wrote in a LinkedIn post published Tuesday.
You can keep reading, here.
Credible via Fox Business/Ann Schmidt
Growing number of retirees spending more than they can afford: survey — here’s how to save in retirement
An increasing number of retirees are living beyond their means this year, according to a recent survey from the Employee Benefit Research Institute (EBRI).
More than a quarter (27%) of retirees are “spending much higher or a little higher than they can afford” in 2022, the Spending in Retirement Survey said. That’s up from 17% in 2020.
More retirees have also reported increasing their spending since 2020. This year, 27% of respondents said they have increased their essential spending, while 12% reported increasing their discretionary spending. That’s up from 2020, when 23% of respondents said they increased their essential spending and 8% said they increased their discretionary spending.
Continue reading, here.