World Bank Forecast for 2023

For John, BLUF:  It may only be fiat money, but its printing must be managed, to avoid issues.  Nothing to see here; just move along.

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World Bank to Warn of Global Recession Risk in Economic Outlook

From Yahoo Finance, by Ros Krasny, 7 January 2023, 7:34 AM EST.

Here is the lede plus two:

(Bloomberg) -- The World Bank is concerned that “further adverse shocks” could push the global economy into recession in 2023, with small states especially vulnerable.

The warning is contained in an abstract for the bi-annual “Global Economic Prospects” report due for release on Tuesday and visible on the group’s Open Knowledge Repository website.

Even without another crisis, global growth this year “is expected to decelerate sharply, reflecting synchronous policy tightening aimed at containing very high inflation, worsening financial conditions, and continued disruptions from Russia’s invasion of Ukraine,” the World Bank said.

Yes, White House Press Secretary Karine Jean-Pierre keeps telling me things are fine, but I am not so sure.  We have pumped a lot of dollars into the economy, through Federal spending, but we have not had a comensurate amount of economic output.  And people are avoiding employment.  While we have climbed out of the April 2020 hole (60.1%), our December 2022 number of 62.3% is still low compared to the 66% of the Bush years before the Recession.  Even then the low was 62.4% (Sept 2015).

These kinds of thoughts are part of what drove those 20 holdouts in the House Speaker election over the last few days.  The Federal Government needs to get its financial house in order.

Hat tip to the Drudge Report.

Regards  —  Cliff