IMF’s Deadly Warning: You Won’t Escape This Recession

The world is crashing into recession and There's no Escape so the IMF has come up With Doomsday Prophecy and it's really Grim now one third of the world will be Plunged into recession and this economic Apocalypse will be felt by everyone now According to crystallena the IMF hit we Expect one third of the world economy to Be in recession even countries they are Not in recession it will feel like a Recession for hundreds of millions of People now this is a very ominious sign Because the IMF is normally behind the Curve right we know that they're like The Federal Reserve they couldn't Predict the housing crash back in 08 and Like power and Yellen they couldn't see The inflation crisis building back in 2021 so when the IMF is telling us that A big crash is happening they are Putting their necks on the line because This is probably too obvious to ignore Now I'm definitely a skeptic when it Comes to the IMF but we have to pay Attention to this and why is this Financial Armageddon happening because The three big economies the U.S the EU And China they are all slowing down Together we have talked about this ad Nauseam that globalization has doomed The world economy we are so Interconnected that if the big economies Collapse the rest of the world will burn As well but this time it won't be a 2008

Recession where inflation suddenly drops Down because demand has been destroyed Right today's inflation is caused by Supply side problems that go beyond just The Russia Ukraine war there have been Decades of under investment into energy Sector and the obsession with going Green is coming back to buyers now many People believe that Europe or China will Be the ones to cause the global Recession but I personally don't think So now just back in 2008 I believe the United States and more specifically the Federal Reserve is going to cause the Financial meltdown and this all has to Do with the fat raising interest rates Right to the point where the world just In clothes and this is what he called Triffin's dilemma this is when the Issuer of the world Reserve currency the Dollar decides to sacrifice the world to Save their own economy now what the US Is doing right now is pulling money away From the world to fight their domestic Inflation and because of this the world Economy is on the brink of Contracting Right and firstly let's understand what The federal reserve's Mission really is It is to ensure stable prices and Maximum employment in the United States Northern Europe Northern Asia but only In America so whatever the FED does is To save the American economy first Whatever happens to the world is

Secondary and the Federal Reserve they Are losing control of fighting inflation Back home now the fact they have been Hiking rates from near zero to 4.5 Percent but core inflation is still Above 6.4 percent the inflation battle Isn't done yet it won't be done anytime Soon because the FED they are trying to Solve a supply side problem with demand Production and when you can't increase The supply of energy Commodities and Food your only option left is to crush Demand and make people jobless right and That's why the FED has been hiking and Sucking liquidity away from the markets They'll be leveraging their balance Sheet and selling way over 400 billion Dollars in bonds to pull cash away from The system so to save their economy the U.S is Raising interest rates for the World they are jacking up the costs are Borrowing not just in America right by Europe in Asia Singapore in Australia And this is what the IMF fears all Emerging economies will get hit the Hardest because the Federal Reserve is Reducing liquidity for the world now This dollar shortage isn't over and if The U.S enters a recession they will buy Less stuff globally and fewer dollars Will flow to the rest of the world and When you have to buy Global Commodities With dollars that is a big problem and This is why the IMF they're calling the

United States the most recent zillion And might even avoid a recession but pay Attention to the next sentence if the Labor market is very strong the FED may Have to keep interest rates tighter for Longer to bring inflation down and we Know the fat once unemployment to go up As a sign that they are winning the Inflation fight but the unemployment Rate is still at all time low so the FED Will keep tightening and their whole Interest rates high and this could cause The rest of the world to slip into a Recession but let's address China as Well the IMF has mentioned that for the First time in 40 years China's annual Growth is likely to be at or below Global growth and this alone could drag The world economy down and the main Driver for that will be at increase in Infections once China ends the lockdowns And according to Chinese media Themselves we can see infections are Going to continue well into late January In the rural and smaller size cities now That is a problem because China is the World's Factory remember when we say in Inflation is a supply side problem it Goes beyond Just Energy shocks from the Russia and Ukraine conflict right China Is one of the top trading partners for Many countries including the United States the Eurozone and Japan so we Could be in for another Global Supply

Crunch and I want to mention what will Happen if China's growth Gates hammered Now the IMF is predicting tough times For China they believe that for the next Couple of months it'll be tough for China and the impact on Chinese growth Would be negative the impact on the Region will be negative and the impact On global growth will be negative Because if they are right China's Factory shut down there's going to be a Lot of inflation paying for the rest of The world China's manufacturing PMI has Declined again in December and if this Continues we're going to see fewer Chinese Goods going to the market There's going to be another supply chain Crunch and it's going to affect every Country out there the recession will get Worse for the world if China creators Because not only do you have fewer US Dollars around thanks to the Federal Reserve hiking the supply of Chinese Goods will cost more supply-side Inflation if it shrinks so this could Very well become a double whammy for Weaker Emerging Markets where they Already have a currency crisis thanks to The dollar shortage and now they have to Pay more to import Chinese Goods that Will be in shorter Supply and this is Why the IMF they are just so frightened Right a Chinese economic crash is just Adding fuel to the fire that the Federal

Reserve has started with their rate Hikes but the worst hit is going to be Europe now guys if there's going to be a Biggest Loser in 2023 it's going to be The Eurozone now the IMF openly admits That Europe is truly doomed and According to the IMF half of the European Union will be in recession and It's easy to see which ones will be the Most trouble right we just need to look At the country's most dependent on Russian energy for their manufacturing Base and we're of course talking about Germany now the German us know that they Are in trouble and that's why Olaf Schultz brought his team of Business Leaders to China they need to access Cheap Russian energy by partnering with Chinese Industries to lower their Manufacturing costs they need the Chinese to keep buying their cars and Machinery China's Germany's biggest Trading partner surpassing even the United States but here's the big problem Guys if the IMF is right and China's Reopening spirals out of control then German revenues are gonna crash we're Gonna see a horrific crash in a German Economy now right now it looks all fine And dandy with their unemployment Somehow falling and the Eurozone set to High interest rates to stop the wage Price spiral right they want to prevent Wages from rising out of control but if

China's economy starts to crack and they Stop buying German products and stock Shipping ship stuff the IMs prophecy is Going to come true the Eurozone will Crash into a deeper recession we're Going to see European industry gets Hollowed out and move over to the Survivors of these Financial apocalypse And it's likely going to be the United States and China and the us because they Still have the reserve currency as a Shield they can print their way out of Recession while China has access to Cheap Russian energy because Europe has Isolated Putin with all their sanctions So if you're European you might want to Brace or impact because the perfect Stock might be around the corner but Let's talk about us guys let's talk About us what should we do if the IMF is Right and a global recession is coming In 2023. now I think it's important to Realize that this is likely going to be A stagflationary crash this is very Different they're going to be three Things that could Define this recession Now firstly inflation is still going to Be elevated higher than two percent for Sure so prices are still going to rise Because the supply side issue isn't Resolved the G7 price came on Russian Oil is going to lead us towards another Energy squeeze we are of Russia on the Brink of cutting output by seven percent

And that's 700 000 barrels a day and That's going to put upward pressure on Oil prices and the second part of this Crash is that interest rates are still Going to stay high the FED is projected To raise rates up to 5.1 percent we have 100 of the market predicting the fare to Hike during their February meetings so The pain isn't over yet and I want us to Be realistic here because once the FED Reaches their target rate they are not Going to reverse immediately I believe There will be a pause down the road but Not a fat pivot Now power is going to Keep rates high for much longer than Most people would expect you see it time And time again guys his goal is two Percent inflation he wants to see Inflation crash down to that level Before he steps off the gas pedal so you Got to ask yourself are you ready for Six to 18 months of rates at five Percent or even higher and finally Because interest rates are going to stay High AI we're going to see the economy Grind to Halt unemployment in the US is Said to surpass 5.5 percent and could Even reach seven percent and this is Very bad news for the markets because Once unemployment Rises the stock market Is going to start pricing in poorer Earnings and we could see Equity prices Crash down to earth and right now the Sheila p ratio is still elevated at 28.

Won't be surprising if it drops down to The mean of 17 as we start pricing in Reality and here's the situation if a Global recession hits there's nowhere to Hide and almost no asset left to go on The offense you know I know this channel Talks a lot about gold but if the whole World is on fire we could really see a Classic liquidation event of gold to Save people from their margin calls in The stock market and I'm not saying that It would crash by over 40 percent like Back in the 1980s but there could be Some downsides if the world economy Collapses and the big irony is that cash Is going to become much more valuable if A recession hits even in today's Inflation hell and that's why I'm Keeping some dry powder on the sides Right it's sitting at a money market Account during around four percent I see The additional three percent inflation Hit as an option premium I have to pay To stay liquid right I will still have The cash the ability deploy if the Markets collapse around me and when it Comes to loans you want to be really Careful before you take out a mortgage Today or borrow money to invest right Mortgage rates has easily doubled over The past 12 months and it's gonna stay High guys if a recession strikes asset Prices could collapse but your Repayments are guaranteed and I think we

Must realize that interest rates are not Going to suddenly drop down to zero Percent those days are gone so you could Be stuck with a hot potato so if you Have cash it's time to pay upfront if You need to borrow tons of money for Something you probably can't afford it And here's the deal guys the IMF is most Likely correct about this Global Recession and it could be even worse Than their prediction the IMF believes That the United States will be insulated From the crash but if the whole world Collapses no one will be able to escape The pain but I want us to be prepared For these collapse because a lot of Assets are going to be at fire sale Prices when the recession hits money is Being put out of the system and Inflation is going to burn through People's savings and if mass Unemployment hits hits game over so if There's ever time to hunker down and Prepare for the worst this is it and Whether you like the IMF or not what They are saying has a lot of Truth and We got to pay attention to this one but Let me know what you think is the big Crash coming in 2023 where the United States really escape a recession and let Me know in the comments below stay safe Be sure to smash the like button and Subscribe has been navigate through These crazy times