We are in a recession right now. And some of the leading indicators point out a higher probability of more severe economic depression in the near future.
Make no mistake.
Not all this chaos is caused by the latest coronavirus pandemic. We are already set up on the brink of the collapse. The latest pandemic is just the trigger that exposed the different vulnerabilities in the already over-leveraged economy.
Interestingly, there are coincidences in numbers between the struggling economy and coronavirus pandemic.
While the coronavirus affected 1 million people worldwide, the recession cost 10 million jobs in the USA just in the past couple of weeks.
And none of the world governments have the capacity or clue to save the economy and neither to stop the spread of the coronavirus. We just don't have the tools or the expertise to fix the problems or protect ourselves. We are completely clueless.
Yet the governments are moving stimulus packages as if printing the money is the only solution to both of the problems.
It is also interesting to note that the emerging economies like India had sacrificed the economy to protect the lives of its citizens by completely shut down the entire nation. Yet the emerged countries like the USA did completely opposite by keeping parts of the countries open and put the lives of people at risk for the sake of protecting a failing economy.
So how we did get here in the first place.
Isn't the sole role of monetary policies, structural economic reforms to fix the vulnerabilities and avoid such an economic catastrophe. Aren't the intelligent minds out there would have figured it out even before such things happen. Or the system we believe in is a complete failure or fraud.
Let's discuss more...