The world is on the verge of a new financial crisis. More and more experts agree that a fundamental "pole shift" is coming. What is it fraught with? Which countries will suffer the most? Can this be avoided?
Bankers, scientists and journalists are persistently saying that a crisis is inevitable. And there are plenty of reasons for the above: economic growth has been record-breaking for ten years, the trade war between the States and China is growing, large world economies are stagnating, and investors are massively moving out of risky assets.
There has been no crisis for more than 10 years. This means that the medium-term stability cycle is coming to its end. Then a recession is would-be. According to the theory of medium-term cycles by Clement Juglar, these cycles are repeated every 7-12 years.
Long maturities have become cheaper than short ones. Fewer investors of investment funds are investing in short-term assets - less than 2 years.
Gold is rapidly growing in price. Over the past year growth was around 30%. At the same time, global investors are trying to find the safest assets.
Central banks are panicking more and more. Members of the US Federal Reserve and other central banks of different countries decrease rates .
In addition, there are still a lot of factors that indicate the imminent onset of the global financial crisis: governments and companies are heavily re-credited, country leaders are rather focused on supporting domestic production and “block”
Important: seven world crises occurred at intervals of 7-10 years: 1967, 1971, 1975, 1982, 1991, 2001, 2009. It is easy to predict that we are on the verge of the next. importing goods, the number of contradictions in central banks is growing rapidly.
In 2008, the world did not face a major financial crisis, in which the great merit goes to the former US President Barack Obama and the US Financial Reserve System. The current president, Donald Trump, is less loyal to the global market and to globalists in general. Their attitude towards Tramp is appropriate. In the worst future perspective this might entail collapse of the dollar world into currency zones, as well as the restructuring of America’s debt. The “bubble” in the US stock market runs the risk of bursting, and it will be impossible to prevent this collapse.
Enormous price failure in the US stock market
A sharp reduction in the cost of oil - up to $ 30-40 per barrel
The real recession in the United States
Worsening of international relations between the USA, China and Europe
Reduced exports, declining competition, price increase for all groups of goods
Dollar’s decline and possibly euro’s
Experts agree that the new crisis will become more profound than the previous ones, and its consequences will be more complicated. Not only the USA and China, conducting an economic war, will suffer from it. Countries with unbalanced economies are also under serious threat. For example, Italy, Spain, Greece and others. And provided there is a blow to the giant countries, less developed countries will suffer as a result.
Nobody can fully protect themselves from all financial risks. But being prepared for a crisis is important. It is evident that in the coming months or years we are about to face serious economic instability, prices-rise, reduced quality of life and financial opportunities for all groups of population. Therefore, it is important to invest in long-term assets right now, increase your own financial literacy and prepare for the possible consequences of the crisis.
We have collected a lot of useful information for you about the phenomenon of financial crises and tips on how to survive them without being harmed. It’s highly recommend that you get familiar with it.