THE ALARM BELLS !!!
The alarm bells are from David Lipton, the first deputy director of the IMF. He has said that the roof should be fixed when the sun is shining. I see the storm clouds rising like many others, but the rescue work is not complete yet. The chances of another crash like 2008 are increasing. On the other hand, world leaders have limited ways to combat emergencies, such as those that were left behind by years of deficit spending and rising national debt. This time we should not expect our governments to react to the economic crisis as they did 10 years ago and have given corporate bailout packages to reduce the impact of the great recession. In addition to the IMF, BlackRock, the world's largest investment management company, also contributed to the report on global investment warned that in 2019 the world is looking to go into the market. The global economy is expected to decline by 19 percent next year, while the company has forecast a 38 percent decline in 2020, which will increase to 54 percent in 2021. BlackRock has advised its clients to re-balance their portfolios. There are two or three major events happening in the world at the moment, which are going to have an impact on the global economy.
The trade war between the United States and China will not be a minor event, because when China became a member of the World Trade Organization, its economy was $1 trillion, which is now $13 trillion. Despite having trade relations around the world, the largest buyer of Chinese exports is the United States, which has 25% of the global economy. If the United States has a large trade market since 2008 or the Trade War with China in the United States, it will also affect other countries' trade and economic activities. The Us can raise interest rates and collect dollars from around the world, but it is possible that the US capital will sink into the market over the next two years, as indicated by the IMF and BlackRock. There is a separation from the EU, which clearly shows that England's economy will have a negative impact. It is believed that the economy of England will decline by 8%. As a result, commercial property prices will remain at half, the unemployment rate will be 7.5 per cent and the value of British pound will fall by 25 per cent against the dollar. To avoid the possible impact of Brexit, many have started moving from Britain to Ireland and other countries in Western Europe. Many companies are also leaving the UK and heading to the European Union and other English speaking countries.
The trade war between the United States and China will not be a minor event, because when China became a member of the World Trade Organization, its economy was $1 trillion, which is now $13 trillion. Despite having trade relations around the world, the largest buyer of Chinese exports is the United States, which has 25% of the global economy. If the United States has a large trade market since 2008 or the Trade War with China in the United States, it will also affect other countries' trade and economic activities. The Us can raise interest rates and collect dollars from around the world, but it is possible that the US capital will sink into the market over the next two years, as indicated by the IMF and BlackRock. There is a separation from the EU, which clearly shows that England's economy will have a negative impact. It is believed that the economy of England will decline by 8%. As a result, commercial property prices will remain at half, the unemployment rate will be 7.5 per cent and the value of British pound will fall by 25 per cent against the dollar. To avoid the possible impact of Brexit, many have started moving from Britain to Ireland and other countries in Western Europe. Many companies are also leaving the UK and heading to the European Union and other English speaking countries.
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