The world may be in trouble as the largest economy is showing early signs of a hard landing. The United States accounts for nearly one-fourth of the global GDP, and with two quarters of negative growth, the whole world is getting nervous as recession looks imminent. Why does this impending crisis look more ominous than the regular cyclical volatility and the inflation-induced recessions the US has gone through in the past?
The world is staring at a major economic and geo-political reset. After almost 80 years of an unprecedented run of prosperity and global dominance, the US has real challenges going ahead. For starters, the conflict with Russia is playing out as a full-fledged economic war now. To make matters worse, China has turned into a foe. The US opened its heart to China in the 1970s, and in the next 40 years, China emerged as the second largest economy with a formidable global presence. But things have turned sour now