Courtesy of Mish.
There is a big difference between making a claim the economy is in recession from a claim the economy is headed for one.
Case for a Global Recession
I think the entire global economy is in recession and said so on July 6, 2012 in Plunging New Orders Suggest Global Recession Has Arrived
However, we need to define the term “recession”
Contrary to popular myth, recession does not mean two consecutive quarters of economic contraction. Rather, two consecutive quarters of economic contraction is a sufficient, but not necessary condition.
In the US, the NBER is the official designator of recession start and end points. Many recessions have started with GDP still growing.
The “Conditions for Global Recession” are even looser. “The International Monetary Fund (IMF) considers a global recession as a period where gross domestic product (GDP) growth is at 3% or less. In addition to that, the IMF looks at declines in real per-capita world GDP along with several global macroeconomic factors before confirming a global recession.”
Given current conditions are what one would expect from outright stagnation (if not worse), I am confident a global recession has begun.
What About a US Recession?
On June 21, I gave 12 Reasons US Recession Has Arrived (Or Will Shortly).
Tipping the Balance to Now (Not Shortly)
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