The last Economic Show we did was on November 11th and we discussed how government intervention distorts economies. The focus there was for any market economy to operate it has to have accurate information on price. The government's intervention distorts price and therefore making all of the decisions businesses and consumers make wrong - the creation of disastrous bubbles. Today's show will focus on what we can expect in 2023. We don't have a crystal ball or claim the power of prophecy. Rather we look at past behaviors of the people and institutions that shape economies and assume these approaches will continue. Never forget the past predictor of future behaviors is the past.

EPISODE 25 - THE GLOBAL ECONOMY The outlook is gloomy. Given the policies that have been put into place since the last recession, 2008-2010, world governments have kept interest rates almost at zero. That is the interbank leading rates which means if they place a traditional 3% margin on top of the loan, most business loans were artifically low. This meant credit was too cheap.

Also, because of excessive spending and building unsustainable sovereign debt, this contraction was inevitable. All of the factors are present for a recession: rising prices, unemployment, and declining GDP.

The only question is will be there a world-wide recession or isolated recessions bringing growth down.