From Tokyo to New York and New Delhi in between, August arrived in world markets with a deafening bang. With almost US $6.4 trillion being erased from the stock market in the last few weeks, only someone living in a fool’s paradise would deny the terrifying sight of knives falling from the sky. The looming threat of a global recession has sent shockwaves through financial markets and businesses, leaving many wondering if we are on the brink of another economic crisis. Because there’s nothing as uncertain as the finance market, many still believe we are in the safe zone, at least, for now. In 2022, big bulls kept flashing warning lights, cautioning about a 98 percent chance of an economic downturn, something previously witnessed before the nightmarish crash of 2008. Even last year, a short-lived banking panic had prompted bears to kick into action. Still, everything took its sweet while to settle and the greenback appeared in perfect control. Nevertheless, this time around, the mayhem might overstay its welcome. Giant or not, every economy needs a constant eye on the target if it wishes to grow in line with its expectations. Considering how the US Federal Reserve has, for undecipherable reasons, waited too long to recover from its fight against inflation to focus on the menace of unemployment, it becomes increasingly clear that while these tremors may pass, the world economy is standing on fragile pillars. The massive and sudden repricing in the currency market is underway as losses have seeped into the credit market. If not controlled today, the wave of recession could lead to widespread job losses, reduced consumer spending, and a decline in global trade and investment. Have we forgotten the Great Shutdown in the wake of the pandemic? From the importance of diversifying investment portfolios to the need for robust fiscal policies, there is no shortage of expert advice on weathering the storm. One thing is certain: the answer to eurozone stagnation, China’s slumpdown and India’s unprecedented losses all lie in the horrors unfolding in America’s labour market. *