Jim Rickards, a famous economist and investment lawyer, has predicted a year of turmoil for global economies in 2024. According to Rickards, the U.S. Federal Reserve will be unable to pull off a soft landing scenario, prompting a global recession. Also, according to Rickards, a new banking crisis involving medium-sized regional banks will develop.
Jim Rickards Predicts a Year of Turmoil: Recession and Banking Crisis to Happen in 2024
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.
According to Rickards, China, the U.S., and Japan will all fall into recession in the coming months, resulting in a global recession scenario in 2024. The Federal Reserve's tightening policies won't result in a soft landing, Rickards forecasts, stating that the U.S. might already be in a recession given reports regarding inverted yield curves, rising commercial real estate defaults, declining industrial production, declining job creation, and falling bank loans.
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.
What do you think about Jim Rickards' dire predictions for 2024? Tell us in the comments section below.
Source: Bitcoin.com
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