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The CEO of FedEx expects the world economy will soon enter a recession because there’s a slowdown of global shipments.
Raj Subramaniam said FedEx has seen weekly declines in shipments since June.
“We’re seeing that volume decline in every segment around the world, and so you know, we’ve just started our second quarter,” he told CNBC. “The weekly numbers are not looking so good, so we just assume at this point that the economic conditions are not really good.”
“…We are a reflection of everybody else’s business, especially the high-value economy in the world.”
Additionally, European countries are increasingly dependent on the US for energy, but US producers are nearing maximum capacity.
“It’s not like the US can pump a bunch more. Our production is what it is,” Wil VanLoh, a top shale investor told Financial Times.
Other insiders said shale production will remain tight for a long time due to the lack of production growth, which of course will have a chilling effect on the world economy.
“There is NO backup energy resource for Europe; it doesn’t exist right now,” wrote analyst Brandon Smith. “They will try to buy up whatever coal, oil and gas they can find on the market while driving up prices even more for other countries.”
“They will still come up short, which means people are going to freeze this winter.”
Long-term, Russia and China are working closer together to become more economically independent from the rest of the world, which could finally end the US dollar’s status as the world reserve currency.