'' HSBC '' warns: the global economy could face the fate of the ship '' Titanic ''

Stephen King, chief economist at Bank warned '' HSBC '' of the approach of the global economy on a new recession.

King described in a report published location '' insider business' 'on economic affairs, that the global economy such as the ship started going without lifeboats, the exposure of the economy back to recession will put decision makers in a position similar to what has happened in the famous ship' Titanic ''.

He stressed that although the cases of recovery enjoyed by the global economy by enabling decision-makers to renew their immunity and strength, but this time the economic recovery in the United States and all other countries is that most shortages with regard to the immune and economic power.

He explained King, '' that in all cases of recession that the global economy has suffered since 1970, the Fed's rate dropped by at least 5 percentage points, but now the time that that percentage would be the prevailing has ended, but will increase '' - says .

He added: '' There is a great shortage of traditional policies for the protection of the recession, and as a result Treasury yields did not rise, the budget deficit did not fall, nor social welfare payments are still on the rise ''.

With regard to what could cause the world to pay another case of economic recession, Kinh highlighted four factors:

1 - causing wage growth in damage to corporate earnings and reduce the share of profits of joint stock companies in the US GDP (at a time when reduced productivity of workers). In contrast, confidence in the economy, loss, and the explosion of '' stock bubble '' with the collapse of stock prices.

2 - non-bank financial systems such as insurance companies and pension funds failed to meet future obligations, which will result in higher demand for liquid assets than people pay for quick sale despite the lack of compatibility with their applications, which will eventually lead to economic recession.

3 - forces beyond the control of the Federal Reserve are included, including the possibility of the collapse of China's economy and its currency, in addition to lower commodity prices, which may cause the collapse of many emerging markets, which will help the continued strength of the US dollar.

4 - the Federal Reserve in the next economic recession may cause by raising interest rates too soon, echoing the same mistakes made by the European Central Bank in 2011, and the Bank of Japan in 2000.