The latest U.S. and European data proves the world is in its steepest freefall ever—and the old economic and political playbooks don’t apply.
This global economic collapse is not the result of a financial crisis. It is not even the direct result of the pandemic. The collapse is the result of a deliberate policy choice, which is itself a radical novelty. It is easier, it turns out, to stop an economy than it is to stimulate it.
The most urgent task is to prevent the slowdown from turning into an immense financial crisis while preventing a 1918 flu pandemic scale medical disaster.
The shutdowns has been counterbalancing with massive stimulus has so far prevented an immediate global financial meltdown.
* Seventy-three percent of American households report having suffered a loss of income in March. For many, that loss is catastrophic, tipping them into acute need, default, and bankruptcy.
* Delinquencies on consumer debt will no surge, leading to sustained damage to the financial system.
* Discretionary expenditure will be deferred.
* Petrol consumption in Europe has fallen by 88 percent.
* The market for automobiles is stone dead.
SOURCES – Foreign Policy article
Written By Brian Wang, Nextbigfuture.com
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.