If the US economy collapses, it will affect the global economy, so is it true? The experts' latest reading is in.
The topic has been widely discussed on the Internet since Fox News published a report on October 5 that the United States could face the worst economic collapse since the Great Depression in the next two years.
This article proposes that from the perspective of multiple data, the amount of money available in the United States at this stage is shrinking rapidly, which is a very bad signal.
Because if you look at the economic crises that have occurred in the United States over the past 110 years, the trend is strikingly similar to that seen during the worst of the Great Depression in the 1930s.
So does this mean that the U.S. economy will crash in 2024?
First, let's look at the underlying data for this question. According to Fox News, some key economic indicators are flashing red. For example, the personal savings rate has fallen sharply, while consumer debt has been rising.
These developments are worrying because they augur weakness in consumption and a slowing economy. But experts point out that comparing the current situation to the Great Depression is not entirely accurate.
While there are many similarities, there are also many differences. The Great Depression-era crash was triggered by a complex combination of economic factors and policy mistakes, including stock market crashes, bank failures, and disruptions to international trade.
In the current situation, despite disappointing economic indicators, the U.S. economic system and policymakers have more experience and tools to deal with the crisis.
So is the United States facing an economic collapse? It depends on how you define "crash." If a crash is defined as a severe recession, then based on the above information, the United States may be facing such a threat.
However, a recession does not mean a collapse of the money supply system. Although some economic difficulties and challenges may arise, the U.S. government and the Federal Reserve system have sufficient tools and means to deal with them.
For consumers, regardless of the economic outlook, they should remain cautious and sensible spending behavior. The decline in the savings rate and the rise in consumer debt mean that a change in spending behavior is necessary. Consumers need to manage their finances more carefully and avoid excessive borrowing and unnecessary spending.
Overall, while the U.S. economy faces some challenges and threats, that doesn't mean it's headed for a Depression-like disaster. Instead, policymakers and market participants need to closely monitor the situation and take the necessary steps to address the challenges ahead.
The trend of all these trends is bound to affect the economic development of our country, I believe that from the development trend of various industries this year, as well as the continued malaise in the financial field such as the stock market, we can see some clues.
If the worst of the recession does occur, then perhaps global turmoil will follow.