Bye Bye America! We will miss you

The historic collapsing in global stock markets will accelerate the end of the American globalization project because within a year or two it will become inflation in the United States of America like Zimbabwe.
PM:03:53:16/03/2020
The historic collapsing in global stock markets will accelerate the end of the American globalization project

Alexander Nazarov
Russian International relation & economist expert

The disaster that occurred on Wednesday, March 12th, hit the stock market of Europe more than anywhere else, so the fall of European indicators in general, as well as in the markets of France, Britain, Belgium, Austria and the Netherlands are the largest sales in history! For Germany, it was the worst day in more than 30 years, since "Black Monday", October 19, 1987.

European stock markets have fallen over the past 4 days this week by rates ranging from 20-23%, which is much worse than it was in 2008. Over the past three weeks, stock exchanges in Germany and France have lost 33%, in the United Kingdom 30%, The United States 26%; Japan 28%, meaning that the past three weeks witnessed the destruction of stock growth that occurred over the past 4 years.

Terrifying Signs

Another terrifying indicator: Against the background of the crash, the US central bank promised to pump $ 1.5 trillion during Thursday and Friday, which suspended the process of collapse for only half an hour, and then the collapse of the US stock exchanges accelerated to 10%. On Friday, this money reached the banks, and the market indicators witnessed a slight growth.

Consider! The US Federal Reserve printed about $ 1.5 trillion with the push of a button in two days, which is twice of dollars in the global economy before the 2008 crisis. As of last Thursday, dollars in circulation in the world was $ 4.2 trillion.

But that is not all!!! According to the US Federal Reserve, by the end of the month, the total amount printed could reach $ 4 trillion!!! That is, the number of dollars in circulation in the world, within 3 weeks, may almost double without a corresponding increase in the volume of goods. On the contrary, the global economy will collapses, and hyperinflation in the United States of America becomes at the same level in Zimbabwe and Venezuela, which has already become a matter of time.

What prompted the US central bank to take such suicide actions? And why was the stock market crash so terrible?

The main risk remains the same as in 2008, which is that the world lives in debt. As collateral for loans, some assets were and are still being used, which are often stocks. When this sharp decline begins on stock exchanges, creditors turn to debtors to request either to increase the guarantee urgently, or to declare bankruptcy, after which these collateral becomes property of the banks.

The bank does not need these stocks, real estate, and other assets, so they sell them, so the imbalance between supply and demand increases, then the subsequent decline in prices, until the chain reaction of bankruptcy and asset liquidation begins. This is the "Monday", "Thursday" and other black days.

The next step in the collapse of the financial system will be the loss of confidence, when one stops trusting in the position of their trading partner, and whether or not they will go bankrupt tomorrow. Then banks stop lending to factories, and lending to each other, because they are not confident in any one or any institution, which will literally stop any economic activity, and the financial system collapses.

Why is there no inflation in the dollar system yet?

This inflation exists, but it is in separate sectors, and not in daily consumer goods for two reasons:

The first is that the trillions of dollars, euros and yen that were printed after the previous crisis led to inflation only in sectors where demands on.

Second, as long as there is no shortage of daily commodities on the market, trillions of dollars will not lead to hyperinflation.

Coronavirus comes, factories around the world have stopped, restaurants closed, and trade chains cut. For example, the South Korean auto industry fell in February by a quarter and no terrifying statistics have yet been released on the implications of the virus for trade and industry sectors.

In short, the West and the world as a whole will suffer for the first time in decades a shortage of commodities, at a time when it is already beginning to pump money to trade very quickly, and with huge sums.

In this way, the world will enter the penultimate stage in the collapse of the global financial system, by pumping trillions of dollars, euros and yen, which will lead to a temporary rise in stock exchanges.

Pumping dollars will temporarily strengthen the dollar, as most loans are translated into dollars, and everyone needs it against the backdrop of bankruptcy waves.

But later, when the markets calm down little, investors will find that the money is large, without bringing any profits. It cannot be invested anywhere, as all bonds and stocks lead to a loss. And then the prices of physical assets begin to raise, all the assets that can be placed in the pocket and touched by hand: gold, grains, oil and others.

In the same way that trillions of printed dollars after 2008 were unable to avoid "Black Thursday,” March 12, 2020, trillions of new printed dollars would not be able to prevent a new collapse. Then the global loan pyramid and global financial system will collapse, and hyperinflation around the world will begin.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Viewer 81