In its latest "Recession Roulette" column, The Economist theorizes that a worldwide recession lasting two years could be in the offing.

The U.S. economy is overheated, with workers now demanding higher wages. While the Federal Reserve has begun its quantitative tightening and is trying to balance slowing down the economy with avoiding an economic pullback, it has only been able to avoid setting off a recession during such a balancing act, a mere three times since 1945. Never during an inflationary period.

Bond traders are already pricing in the Fed lowering rates by 2024 due to a weakened economy.

In europe, inflation is being driven by different catalysts, primarily pricey imported energy and food.

Adding to the problems in the U.S. and Europe is the resurgence of COVID in China, the subsequent lockdowns and a repeat of supply chain strains.

Rather than removing the punchbowl from the party at the right time, The Economist says, the United States Federal Reserve "has instead presided over a blowout." European leaders are guilty, too, of not weaning their dependence on Russian oil and gas. China should have seen the omicron variant crippling its production.

"Economic trouble often stirkes as a bolt from the blue," The Economist concludes. "Today's recession scare was avoidable."