Global Recession and a New Banking

Notable economist, investment banker, and best-selling author Jim Rickards has predicted 2024 will be a year of turmoil for the global economy, forecasting a global recession that will affect the U.S. and China, which will be unable to emerge unscathed from the significant headwinds they are facing. “My overall forecast is that 2024 will be more tumultuous and shocking than 2023,” Rickards notes.China, even with its stimulus reopening policies, will fail in its most recent relaunch attempt due to debts weighing heavily on its economy.Rickards also believes the banking crisis that developed this year will continue in 2024, with not-too-big-to-fail regional banks having a starring role on this stage. Rickards explained:Investors are relaxed because they believe the banking crisis is over. That’s a huge mistake. History shows that major financial crises unfold in stages and have a quiet period between the initial stage and the critical stage.According to Rickards, this midsize banking meltdown could snowball into a global crisis directly affecting capital markets. Stocks will perform poorly, losing up to 50% if global geopolitical conflicts escalate, while gold and silver should “perform well” in a flight-to-quality scenario. “Put on your crash helmets for a wild ride in the coming year,” he warned.

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