by Mohamed El-Erian on (#4N3PM)
Resolving US-China trade war is not enough to ward off what many fear is a looming worldwide recessionIt is only a matter of time until the escalating tensions between China and the US prompt many more economists to warn of an impending global economic recession coupled with financial instability. On 5 August, Bloomberg News said that the yield curve, a closely watched market metric, “Blares Loudest US Recession Warning Since 2007â€. And Larry Summers, a former US treasury secretary who was also closely involved in crisis-management efforts in 2008-09, recently tweeted: “We may well be at the most dangerous financial moment … since 2009.â€Many economists argue that resolving US-China trade tensions is the best way to avoid significant global economic and financial disruption. Yet, while necessary, this would be far from sufficient.Related: Globalisation as we know it will not survive Trump. And that’s a good thing | Larry Elliott Continue reading...