I find the talking heads from Fox Business and Bloomberg to be quite entertaining. They appear to have vast business and economic backgrounds, yet can’t agree on whether we have entered into recession or are on a path of expanding growth. They both could be right.
Traditionally, a recession is deemed to have occurred if the gross domestic product (GDP) shrinks for three consecutive quarters. This theory may no longer apply to a world economy. China’s GDP has declined to approximately 6.5% growth from double-digit territory. This is suspect as the Chinese Government restricts data defining the economy. In addition, Japan, Russia and the European Union economies have been in the tank for years. These reductions impact the US, and commodity prices (raw metals, oil, consumer goods, etc.) fall as these major world producers demand for these goods drop.