HSBC chief economist Stephen King believes that another recession is just around the corner, Pravda.Ru reports.
King said in a note to clients that the world economy was like an ocean liner without lifeboats. "If another recession hits, it could be a truly titanic struggle for policymakers."
Also read: Economic recession in USA simply a hoax
Whereas previous recoveries have enabled monetary and fiscal policymakers to replenish their ammunition, this recovery - both in the US and elsewhere - has been distinguished by a persistent munitions shortage. This is a major problem. In all recessions since the 1970s, the US Fed funds rate has fallen by a minimum of 5 percentage points. That kind of traditional stimulus is now completely ruled out.
According to King, recovery is nowhere near, because there is a lack of "traditional policy ammunition." Treasury yields have not risen, the budget deficit is not falling, and welfare payments are still on the rise.
Russia has deployed two armies and three units of Airborne Forces to its western borders as part of a verification check, Russian Defense Minister Sergei Shoygu said