That said, slowly or not, the economy will make the transition, the demographics will shake out and in the fullness of time things will move on. Man has been here a thousand times before. The fall of the Roman Empire led to the economically and culturally depressed Middle Ages - complete with the Black Death that wiped out 1/4 of Europe's population. By contrast, the 1918-1919 Spanish influenza pandemic produced - with a little help from World War I demobilization - a sharp but relatively short economic depression, but then to the huge economic boom of the 1920s. The Great Depression set the stage for another world war and then the boom of the 1950s. (Such that no one remembers - at all - the 1957 influenza pandemic. It scarcely merits a footnote in the history of the 50s.) Through it all, life moved on, man adapted and the economy resumed its course such that, according to statistics provided by the United Nations Organization, world poverty is at its lowest level in human history. So take a breath, the ride will be bumpy as ever it has been, but life will move on.
Where have you been? It already has. 3 to 4 million people a week are losing their jobs. No jobs means no consuming , no consuming means and no jobs mean no tax revenue, no tax revenue means more money printing , which means more debt, which means no growth.
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Yup, even nuclear bombs or world war could permanently destroy the economy in that place
I rarely end up wrong
1) I can remember you previously saying stock market wouldn't crash by 30% . In a previous life on here. LOL2) Gold limits the printing of money by Fed, and money printing creates more debt. The reason we are and every country has so much debt and out of control spending is the lack of Gold backing their dollars.
1) Lmao. Unless that previous life was only a few weeks ago, You’re not actually right. This is an event beyond the scope of how the capital markets function and beyond economic theory, as it merely has to do with the government shutting down business.So that claim nor that I was wrong about that is pretty irrelevant2) True. And sovereign monetary policy existing by a central bank is great all-round. Also, debt is usually created by just issuing government bonds. That is entirely related to fiscal policy by the government and not at all related to monetary policy by the fed
For example, the monetary base in the eurozone (which is heavily subjected to monetary policy by the EU) is quite a bit smaller than government debt in the EU. The restriction of the EU was even to purchase as much as 30% debt of government debt.
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