- China’s Evergrande is spooking markets and the global economy faces a range of threats that could derail recovery.
- Soaring energy prices are disrupting production; in the background the US and China still aren’t getting along.
- With growth slowing and prices hitting multiyear highs, economists are talking about the dreaded “stagflation.”
The name Evergrande is becoming as famous in 2021 as the name Lehman Brothers was in 2008. The colossal Chinese real-estate developer is wobbling, threatening markets far outside China’s borders. But as big as a $300 billion debt default is, it could just be the tip of the iceberg.
The world’s economy is struggling with higher prices, shipping delays, and widespread shortages. The combination of them could lead to even great struggles ahead.
Four major indicators are flashing red alarm signals, and they could well turn into something worse.