Kansas City Confronts Global Recession: Local Leaders Ready?!?

Hard times have just begun and many economists predict that Americans and the world are about to endure the recession that we've been putting off since about 1971.

Let's put this in perspective . . .

There are a few economists who believe that the upcoming "recession" is really an impending economic collapse that threatens to create a "shift" so significant that capitalism as we know it might not survive intact. 

To be fair . . .

Despite the bloviating of people who don't really understand macroeconomics but are eager to share insights about "socialism" that funds the streets they drive on . . . Most corporations receive far more government largess than any  so-called "welfare queen" of a trailer park or housing project that Ronald Regan attempted to roast. Truth be told . . . That kinda talk was always a bit rough for a guy who spent many years working alongside a chimp. 

But I digress . . .

Here's the main point that's worth repeating . . .


Think about recent news . . .

KC is ready to borrow 2 BILLION for  downtown stadium district, Jackson County keeps raising taxes and one pet project after the next is promised by politicos who are more interested in kickbacks than city finances.

Accordingly . . .

And because most of the better financial news coverage in Kansas City is hidden behind paywalls . . .

We share more than a bit of insight on impending economic doom . . .

The Conference Board's leading indicator, which he calls a "highly accurate forecasting tool" based on 10 key data points—including interest rate spreads, consumer expectations, manufacturing, stock prices, and building permits for new homes.

The Conference Board now forecasts 2022 gross domestic product (GDP) growth will come in at 1.8% and 2023 GDP will slow to zero.

Second, is the money supply, or M2, a measure that Nobel Prize winner Milton Friedman championed. M2 has ballooned under President Biden's "massive increase in federal spending that led to an equally massive money printing by the Federal Reserve," Larry Kudlow, former National Economic Council director under the Trump administration says.

"That was the single-biggest mistake by Joe Biden," he maintains. "It moved the inflation rate up from about 1% to nearly 10%. Because of that, real wages have fallen 18 consecutive months."

Here's an even more apt analysis . . .

Economist Mohamed El-Erian said that analysts need to shift away from the mindset that the downturn will be a short, sharp recession – a way of thinking he warned had driven the Fed's characterization of inflation as merely "transitory" even as prices crept up last year.

"From the US Federal Reserve's initial misjudgment that inflation would be 'transitory' to the current consensus that a probable US recession will be 'short and shallow,' there has been a strong tendency to see economic challenges as both temporary and quickly reversible," he said.

But "these changes will affect individuals, companies, and governments – economically, socially, and politically," El-Erian added. "Until analysts wake up to the probability that these trends will outlast the next business cycle, the economic hardship they cause is likely to significantly outweigh the opportunities they create."

Read more via www.TonysKansasCity.com links . . .

Kudlow Points to 4 Recession Warning Signs

Larry Kudlow, former National Economic Council director under the Trump administration, says there are multiple leading indicators pointing to a recession in 2023. Ever the optimist, however, who "believes in the greatest of the soul of the founding of the United States of America," the Fox Business host says there are a few important actions the government can take to restore the U.S.

Brace for 'violent' shocks that may reshape the global economy forever, warns top economist Mohamed El-Erian

The global economy is headed for a severe recession, Mohamed El-Erian has warned. The economist expects "more uncertainty in the future as shocks grow more frequent and more violent". The recession will be drawn-out rather than "short and shallow", he added. Markets should brace for a severe recession that might forever change the world economy, Mohamed El-Erian has warned.

Not Just Another Recession

Recessions and bouts of inflation come and go, but the last few years have seen a series of highly unlikely, if not unthinkable, global economic and financial developments. The United States, once a champion of free trade, became the most protectionist advanced economy.

The Treasury Market's Big Recession Trade Is Gathering Momentum

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'Most economists are predicting a recession in 2023': I own a rental property. Is it a good time to take out a bank loan and renovate - or should I wait?

Dear MarketWatch, Along with a sibling, I own a rental property of more than 40 rooms in the Caribbean, where we do weekly rentals. It's near downtown but in need of repairs and renovation. Is this a good time to go to the bank for a loan for renovation?

Will the strong dollar trigger a global recession?

In recent months, a fearful narrative has taken hold in international financial circles: Rising U.S. interest rates are boosting the dollar, forcing cheaper currencies and higher import costs onto economies already struggling with skyrocketing energy and food prices. To keep the lid on soaring inflation, foreign central banks must further tighten their own monetary policies, pushing the world into global recession.

"White Collar Recession" 2023 - Why The Highest Earners May Fall Fastest

White-collar workers might face more job uncertainty in the coming months. Tech layoffs may have signaled the start of challenging times for white-collar workers. Increased automation and overhiring in the previous year could push white-collar workers to fall fastest. Recession fears have been swirling for months.

'Battle-hardened' food banks and pantries are already struggling to cope even before the recession finally arrives

Food prices soared by almost 11% in the past year, per the Bureau of Labor Statistics. Families are turning to food banks and pantries for support, but many are struggling to meet demand. Some food banks have reported their highest distributions on record, exceeding pandemic levels.

Developing . . .