BRICS: America’s 4th largest bank warns of economic crash

Amid ongoing geopolitical change brought about by the BRICS economic alliance, America’s fourth-largest bank has warned of an impending economic crash. Specifically, Citigroup’s US chief economist, Andrew Hollenhorst, has spoken to CNBC about his concerns about the United States and its economic fragility.

Hollenhorst discussed his concerns, particularly regarding the labor market. He noted that the deterioration of the employment sector could have dire consequences for the country. In the end, he talked about why a hard landing can only be inevitable for the nation.

US dollar loses ground amid rising BRICS tradeUS dollar loses ground amid rising BRICS trade
Source: Watcher.Guru

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Citigroup warns of possible economic collapse

Over the past year, the BRICS economic alliance has seen significant growth. Not only has the bloc embraced its first enlargement initiatives since 2001, but it has also embraced economic policies across the alliance. These infrastructure developments discourage international reliance on the US dollar while promoting the use of the local currency.

Now, the geopolitical shift orchestrated by the BRICS bloc may be playing a role in warning America’s fourth-largest bank of an impending economic crash. Specifically, Citigroup’s Andrew Hollenhorst noted that a hard landing is likely in the cards.

Firms hire at a lower rate. Firms are making workers work fewer hours, Hollenshorts told CNBC. So this gradual easing has already started. That tends to snowball and end up in something that looks more like a hard landing.

Source: CNN

Also Read: BRICS trade hits new high as US dollar takes a big hit

In addition, Hollenhorst noted that some reports have expressed a more worrisome view of economic conditions. Furthermore, he noted that a recession could be set to follow any hard landings that occur. Specifically, it notes that small businesses have shown the lowest levels of hiring intentions since 2016.

Additionally, the employment rate is at its lowest level since 2014, Hollenhorst said. Therefore, the reality of the labor market coincides with the general issue of interest rates, inflation continues, and optimism does not seem to be a logical response.

All of this will also face the ongoing questions of the US dollar that have arisen in recent months. The BRICS alliance has fueled a global shift to gold and other assets. Therefore, continued debt worries and de-dollarization initiatives will only increase the pressure on the US at its worst.

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