Morgan Stanley: Global Recession is Coming — Futures Pegged Hard

Greetings plebs!

Based upon some back of the napkin math, the gurus at Morgan Stanley are warning of GLOBAL RECESSION — thanks to Trump’s trade wars. As such futures are hammered down 150.

Investors are overlooking the threat posed by the U.S.-China trade war, which could send the global economy into recession in less than a year, according to a research note published Sunday by Morgan Stanley.

“Investors are generally of the view that the trade dispute could drag on for longer, but they appear to be overlooking its potential impact on the global macro outlook,” wrote Chetan Ahya, the investment bank’s chief economist.

Ahya noted that the outcome of the trade war at the moment “is highly uncertain” but warned that if the U.S. follows through with 25% tariffs on the additional Chinese imports, “We could end up in a recession in three quarters.”

I don’t consider -150 hardly anything to worry about. It strikes me as tepid and I suspect it won’t stick. We’ll either accelerate rapidly to the downside or bounce. Gold is up, however, and that’s where I’m positioned now and I’m glad I bolted out of GUSH before the close on Friday. This is not a time to be brave and resolute, but instead malleable and open to the idea that we can, in fact, collapse from present levels — into the dirt and into the fiery flames of hell — skin removed from bones, bones removed from muscles and CRUSHED into dust and sent back to the earth to nourish the plants and the trees.