In the wake of the coronavirus pandemic, supply shortages have plagued the country. It’s not just toilet paper, cleaning supplies, and seeds we are talking about. It’s more than that and some believe this is another telltale sign that we are living through a systemic breakdown. In a previous article, Ripe For Chaos: How The Great Reset Will Shake Us To Our Core, it was written:
“We are literally watching a TEOTWAWKI event transpire right before our eyes. By all accounts, the pandemic was the triggering event that will set off a breakdown of epic proportions. As the COVID-19 pandemic opened our eyes to a worldwide health crisis, what could ensue will shake us to our core.
There is no mistaking the signs of economic instability. Turmoil in the stock markets, mass job loss, and cost of living have been at the forefront of our minds dealing with the aftermath of COVID, but now we are literally living in a world where there is a battle for resources from a country level to a world level. Borders are temporarily closing. Resources are getting scarce. Most people do not understand this is the fall of a civilization.
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BEIJING – The next economic crisis is closer than you think. But what you should really worry about is what comes after: in the current social, political, and technological landscape, a prolonged economic crisis, combined with rising income inequality, could well escalate into a major global military conflict
The 2008-09 global financial crisis almost bankrupted governments and caused systemic collapse. Policymakers managed to pull the global economy back from the brink, using massive monetary stimulus, including quantitative easing and near-zero (or even negative) interest rates.
But monetary stimulus is like an adrenaline shot to jump-start an arrested heart; it can revive the patient, but it does nothing to cure the disease. Treating a sick economy requires structural reforms, which can cover everything from financial and labor markets to tax systems, fertility patterns, and education policies.1
Policymakers have utterly failed to pursue such reforms, despite promising to do so. Instead, they have remained preoccupied with politics. From Italy to Germany, forming and sustaining governments now seems to take more time than actual governing. And Greece, for example, has relied on money from international creditors to keep its head (barely) above water, rather than genuinely reforming its pension system or improving its business environment.
The lack of structural reform has meant that the unprecedented excess liquidity that central banks injected into their economies was not allocated to its most efficient uses. Instead, it raised global asset prices to levels even higher than those prevailing before 2008.
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