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Bill Holter’s Commentary

And people are nervous about holding gold?

Central Banks Set To Flood Market With Cheap Loans As Trade War Threatens To Plunge Global Economy Into Recession
June 8, 2019

 

 

 

 

 

 

 

 

 

 

 

Federal Reserve chairman Jerome Powell said he is prepared to act if the trade wars have any impact on the US economy. Photo: AFPFederal Reserve chairman Jerome Powell said he is prepared to act if the trade wars have any impact on the US economy. Photo: AFP

Federal Reserve chairman Jerome Powell said he is prepared to act if the trade wars have any impact on the US economy. Photo: AFP

The era of cheap funding is set to return as central banks worldwide cut interest rates to stimulate slowing growth amid an escalating global trade war that could tip the world economy into recession, according to analysts.

The chances of a global recession have risen after the US last month raised tariffs on US$200 billion worth of Chinese goods to 25 per cent from 10 per cent while threatening to impose tariffs on another US$300 billion more of Chinese goods. China hit back by raising tariffs on US$60 billion of US products from June 1. It has also cranked up the tension with major trading partners Mexico and India.

Analysts have cut China’s gross domestic product growth forecasts for this year, while the American business community is worried that the US will enter a recession next year, which could drag the global economy with it.

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