Posted on 06/06/2023 12:15:47 PM PDT by EBH
The World Bank said Tuesday that global economic growth has slowed sharply in the face of higher interest rates, chronic inflation and continued fallout from the banking crisis.
The world economy is expected to expand just 2.1% this year, after growing 3.1% in 2022, the Washington-based institution said in its semiannual Global Economic Prospects report released Tuesday.
Advanced economies, including the U.S., are projected to also cool to a growth rate of just 0.7% this year – a marked drop from the 2.6% rate recorded in 2022 and one of the weakest growth rates in the last five decades, according to Indermit Gill, the World Bank Group's chief economist and senior vice president.
...The threat of higher interest rates, and the possibility of more turmoil in the banking sector following a spate of bank collapses this spring, could slow economic growth even more this year.
"The world economy remains hobbled," the World Bank said in the report. "Besieged by high inflation, tight global financial markets, and record debt levels, many countries are simply growing poorer."
(Excerpt) Read more at foxbusiness.com ...
But, electric cars will save the environment.
That is, if their batteries don’t catch fire.
“Warns?” Hell, they orchestrated it!!
I thought it was wind turbines and solar panels. It's all so confusing.
If the economy grew at 3.1% and inflation was 3.1% did the economy actually grow?
Inflation is a regressive tax that hurts the working poor the most. The Biden policies caused this inflation, and this tax on the poor.
How will this be communicated by us? by the mainstream?
Or will the non-poor that control both wings and the middle not communicate the truth?
“The world economy remains hobbled,”
Well, maybe trying investing capital in actual productivity next time, instead of substituting money printing for productivity.
You aint seen nothing yet.
“A trend to walking away from commercial mortgages is just beginning. The Wall Street Journal reports Interest-Only Loans Helped Commercial Property Boom. Now They’re Coming Due.”
And …
“The 1,921 Room Hilton Union Square Hotel in San Francisco Was Just Abandoned”.
Virginia-based REIT Park Hotels & Resorts has opted to cease payments on a $725 million loan (that balance reflected 50% equity in the hotel. Who would abandon a 50% stake? Unless the appraisal is BS)
“How will this be communicated by us? by the mainstream?”
Luckily for us, economic reality has a way of communicating all by itself.
And people will naturally blame whoever happens to be in power when the pain hits. So long at that is Biden, we don’t have to do anything. He’ll try to blame Trump, of course, but I don’t think he’ll convince many who weren’t already going to vote for him.
No business can survive on a 2% gross profit margin, when they do they are benefitting from speculation value in their stock, which will only continue until they are stress tested.
“Unless the appraisal is BS”
Well, appraisals are great for interchangeable property, like single family homes. When your house looks like every other house on the block, you can get a reliable estimate of its value by looking at other similar houses that sold. Not so much for one-of-a-kind property, like a 2,000 unit hotel in San Fransisco.
You have no idea if there even is a buyer for that kind of property or not, so an appraisal is essentially meaningless paper that you paid someone for because the bank demanded it.
Using the dollar as a weapon against the world is the risk Biden took. Wrong time, wrong place, wrong situation, just wrong, wrong, wrong. And he has not turned away from those choices.
Jimmy Carter 1981 all over again.
I like the anti American crowd, America is no one.
When America gets a cold, everyone else gets pneumonia.
Like 1981, we exported our inflation and then jacked the interest and stalled the planet.
this is no different.
Wonder how many dots are connected to no more drilling and shut the pipe line down?.
It changed many countries who depended on the U.S.
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