Near future
Contact us
  • Home
  • Tech
  • Health
  • Environment
  • Architecture
  • energia
  • Transportation
  • Spazio
  • AI
  • concepts
  • Gadgets
  • Italy Next
  • H+
June 28 2022

Coronavirus / Russia-Ukraine

Near future

News to understand, anticipate, improve the future.

No Result
View All Result

News to understand, anticipate, improve the future.

Read in:  Chinese (Simplified)EnglishFrenchGermanItalianJapanesePortugueseRussianSpanish

Are we close to a second major depression?

A prediction that I hope will not come true: we are in a phase too similar to that of the great depression of the 30s because there are no effects.

Gianluca Ricciodi Gianluca Riccio
in Weather
Share44Pin6Tweet17SendShare5ShareShare3
great depression
December 4 2019
⚪ Reads in 3 minutes
A A

They are not isolated voices: the analysis of the global economic situation now leads more than one expert to hypothesize disturbing economic scenarios for the near future, to the point of prefiguring the advent of a second great depression.

Le critical similarities between the great depression and the present era are different:

  1. The gap between the rich and the poor increases worldwide;
  2. There is no effective monetary policy that can reduce it;
  3. World order changes, in this case the rise of China and the potential risks of trade / technology / currency wars.

Financial wars

In particular, the last risk is the one with the most negative potential. The US Treasury's attitude suggests a desire for a weaker dollar to encourage more exports.

For many economists, including the former chief economist of the BIS (Bank for International Settlements) William White, this is the perfect recipe for disaster:

Maybe you are also interested

Economists agree: ecological transition? A gain, not a cost.

The ordeal of rubber: it works wonders, but it will end. What to do?

National currency for learning: how culture can make us rich

Because the Great Covid pause will be remembered as a revolution

These choices could lead to the end of the current dollar-based regime, already under pressure for economic and geopolitical reasons.  Destroying an old regime, certainly not optimal, without having prepared a replacement could prove very expensive for economic growth (a new, Great Depression would have incalculable costs). Conducting a currency war involves directing monetary policy to something other than domestic price stability. 

If this leads to growing suspicion of all fiat currencies, especially those issued by governments with large sovereign debt, a sharp rise in inflation and interest rates could follow. It is not difficult to imagine how this could interact with the high debt ratios, both public and private, we see in the world today.

Currency devaluations against gold were a major contributor to the Great Depression. Together with protectionism and tariffs, they devastated global economic growth and trade. And now it could happen again.

The repetition of the 30s? A new, great depression.

It is not 100% certain to happen, nobody has a crystal ball. And in any case it can be useful to practice for one of the promising jobs of the future in the financial field. But a recession would bring a monstrous deficit (estimated at $ 2 trillion) to the United States, and a consequent increase in taxes and expenses.

If we put ourselves that even in Europe the scenarios are gloomy (the situation of the Deutsche Bank is paradoxical), potentially even with a breakdown of the euro zone, we could soon witness a race of many nations to weaken their currencies. The result would be just that, a new, Great Depression.

An unprecedented crisis is expected which will lead to the largest loss of wealth in history. And most investors don't seem to be fully aware of this. 

tags: deutsche bankaeconomyfinanceinflation
Previous post

Vending machines for gifts and the future of solidarity

Next Post

Developed hydrogel which becomes firmer with increasing heat

COLLABORATE

To submit articles, disclose the results of a research or scientific discoveries write to the editorial staff
  • BrintØ, an artificial island to produce green hydrogen

    BrintØ, an artificial island to produce green hydrogen

    148 Shares
    Share 59 Tweet 37
  • A plant-based, antimicrobial 'coating spray' keeps food fresh

    76 Shares
    Share 30 Tweet 19
  • Solar paint: where are we?

    378 Shares
    Share 151 Tweet 94
  • Liteboxer Bundle, the boxing machine for killer workouts

    763 Shares
    Share 304 Tweet 190
  • Ukraine, nuclear war never so close. The world hangs by a thread

    10 Shares
    Share 3 Tweet 2

archive

Have a look here:

GoCycle, the ebike you carry like an umbrella
Transportation

GoCycle, the ebike you carry like an umbrella

GXi will transform a centuries-old means of transport such as the bicycle into more than an ebike: a daily and ...

Read More
The 1986 Marvel intro exploited the world's most powerful computer

The 1986 Marvel intro exploited the world's most powerful computer

Kitchen

Cuisine, the concept of a lunch box with a built-in oven

Telecom cools costs with a hot offer

Transparent human organs created: they will be the model for 3D printing

Transparent human organs created: they will be the model for 3D printing

The daily tomorrow

Futuroprossimo.it provides news on the future of technology, science and innovation: if there is something that is about to arrive, here it has already arrived. FuturoProssimo is part of the network ForwardTo, studies and skills for future scenarios.

Subscribe to our newsletter

Environment
Architecture
Artificial intelligence
Gadgets
concepts
Design

Staff
Archives
Advertising
Privacy Policy

Medicine
Spazio
Robotica
Work
Transportation
energia

To contact the FuturoProssimo editorial team, write to [email protected]

Chinese Version
Édition Française
Deutsche Ausgabe
Japanese version
English Edition
Edição Portuguesa
Русское издание
Spanish edition

This work is distributed under license Creative Commons Attribution 4.0 International.
© 2021 Futuroprossimo

No Result
View All Result
  • Home
  • Tech
  • Health
  • Environment
  • Architecture
  • energia
  • Transportation
  • Spazio
  • AI
  • concepts
  • Gadgets
  • Italy Next
  • H+