The risk of global recession has suddenly jumped several notches, as the accumulated damage from US President Donald Trump's trade wars and worldwide monetary tightening is taking a bigger toll than hoped. Over $US11 trillion ($NZ16 trillion) of bonds worldwide are back to negative yields. The danger for the world economy is that the sugar rush from Trump's $US1.5 trillion fiscal package will fade - before China comes close to righting the ship. It does not require a catalyst to set off global recession. We may already be uncomfortably close to Borio's tipping point.

Source: Stuff February 25, 2019 00:22 UTC