Oh yes, this is going to be excellent for the billionaire class.
A new cheap labor market is about to open up for the US.
The graph doesn’t give enough context, nor does the article IMO. China is a third party in this, as well as the Ukraine War, etc. And Trump seems unlikely to be good for the economy in his time in office so next year might be up, but there are many more factors.
With Donald Trump preparing to cut taxes and increase tariffs, US inflation is forecast to stay above 2 per cent throughout the whole of 2025, according to predictions compiled by Consensus Economics. Eurozone inflation is on the other hand forecast to drop below the ECB’s target of 2 per cent as soon as February.
“We expect a divergence to open up between the loosening cycles of the Fed and the ECB as mounting inflation risks cause the former to take a fairly cautious approach, while the latter responds forcefully to economic weakness,” said Jennifer McKeown, chief global economist at Capital Economics.
This is a combination of Neocon colonial handlers promising to please Trump through every imaginable increase in warmongering submission to keep war ongoing, and deeply misplaced optimism that Trump’s pro US oligarchy/monopoly profits will help economic growth instead of just the stock market.
Technically, high cost of living increases from tariffs and deportations can be “nominal economic growth”. Insurance costs will keep skyrocketing from high replacement costs of homes and autos, and pessimism over global warming. If US massively increases government spending, the growth forecast is possible, but then so is collapse and debt default.
The growth forecasts will be accurate if colonial subjugation increases even more, but EU leaders during Trump45 had more backbone as a result of his disrespect. Everything is extremely uncertain, but there is more likely to be a US led global recession than anything else.
