Analysts have listed 12 dire economic trends that could emerge in the second half of 2022.
The first half of 2022 is about to pass, but the economic expectations for the second half of the year are still not optimistic.
Michael Snyder, a well-known investment analyst in the United States, recently wrote that many of the problems people are facing may continue to worsen, and the American people’s views on the economic situation are becoming increasingly pessimistic. In fact, as many as 85% believe the economy is “very likely” or “somewhat likely” to experience a recession at some point next year. And, “recession” isn’t the worst. Snyder lists 12 dire economic trends he thinks we might see in the second half of 2022 :
#1 Gasoline prices will continue to soar to alarming levels. A spokesman for 76 Gas Station in Auburn, Wash., confirmed to The Post Millennial that it had reprogrammed its gas pumps to display double-digit gas prices. Although they do not explicitly expect the price to rise to $10 or more, the current trend suggests that is a possibility.
Fuel supplies will continue to tighten in the coming months. Diesel fuel is now being rationed in residential areas somewhere on the East Coast and Midlands. But so far, there has been no confirmation that this is happening widely.
#2 During the coming summer, power outages are likely to be extended in some parts of the country , with the central US facing a particularly dire situation. About 100 million Americans will face power outages this summer due to sweltering heat, overloaded power plants and unreliable green energy.
#3 Food prices will continue to rise . Take the experience of Jeff Good, who co-operated three restaurants in Jackson, Mississippi, with a partner. About 18 months ago, it cost $85 to buy a 40-pound box of chicken wings. Now, its price can be as high as about $150. The cost of cooking oil and flour has nearly doubled in the past five months, he said. And it’s not just the prices of raw materials that are rising, but the cost of labor and services. He is trying to choose whether to continue raising sales prices or to eliminate high-cost dishes.
#4 Shortages will continue to intensify as supply chains come under more pressure. The current shortage of infant formula is just the beginning.
#5 The worst global food crisis since World War II is unfolding. More than 23 million people in Ethiopia, Somalia and Kenya are experiencing extreme hunger, more than double the 10 million last year, according to a new report from Oxfam and Save the Children. The region’s worst drought in 40 years is being exacerbated by conflict and the pandemic. The Russian-Ukrainian war has caused food prices to soar to record levels.
#6 Widespread starvation will almost certainly lead to more civil unrest . Protesters in Sri Lanka burned down the houses of 38 politicians, and the situation was further engulfed in chaos, with the government even ordering the army to “fire immediately upon discovery”.
In addition to the destroyed homes, 75 homes were damaged, police in the country said on Tuesday, as residents continued to defy a nationwide curfew to protest the government’s mishandling of its worst economic crisis since 1948.
#7 The Fed is likely to continue raising rates aggressively . Chairman Jerome Powell warned on Tuesday that the U.S. could feel “some pain” as the central bank raises interest rates to fight inflation, insisting the Fed will do whatever it takes to curb price growth.
In an interview with The Wall Street Journal, Powell said that even if the economy faces the risk of a recession, the Fed will continue to raise interest rates until inflation starts to fall and the forces driving prices up fade.
#8 Higher interest rates would be devastating to the U.S. housing market. In very disturbing news, home sales fell for the third straight month in April as rising mortgage rates and insolvency drove many would-be home buyers out of the market.
#9 Defaults may continue to rise . Like the 2008 financial crisis, subprime defaults began to surge. Consumers with low credit scores are delinquent on auto loan, personal loan and credit card payments, signaling the end of the healthiest consumer lending environment in U.S. history.
The proportion of subprime credit cards and personal loans that are at least 60 days past due is rising at a faster-than-normal rate, according to credit reporting firm Equifax. In March, these delinquency rates rose for the eighth consecutive month on a monthly basis, approaching pre-pandemic levels. Subprime auto loan and lease delinquency rates hit record highs in February, according to Equifax verification dating back to 2007.
#10 As the economy slows, layoffs will increase and jobless claims will eventually start to soar . In fact, they have now reached a four-month high.
#11 All this bad economic news will be very negative for stock prices . The S&P 500 has nearly slipped into the brink of a bear market, and many believe what we’re seeing is just the beginning.
#12 Many are warning that a recession is either already here or coming. Americans are increasingly pessimistic about the economic outlook. According to a Quinnipiac University poll released Wednesday, 85 percent of Americans expect a recession next year. Of those who responded, 45% said it was “very likely” and 40% said there was a “some chance” of a recession.
Snyder pointed out that there is no doubt that a historic economic collapse is rapidly approaching, and as the situation deteriorates significantly, the mood across the country will change dramatically.
Most hard-working ordinary folks complain about having to work an extra job just to deal with rising gas prices, rising food prices, and everything else. The Biden administration, however, ignored these, and instead invested money in epidemic prevention and support for Ukraine, destroying the original living standards of Americans. Snyder concluded by saying:
“Unfortunately, we’re still in the early stages of this crisis. From that, the second half of the year is going to be more challenging than the first, and that’s going to have huge implications for everyone.”
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