Ukraine remains a loser: the economies of China, the USA and the EU are collapsing - expert
Quarantine measures in the world's largest economies have already led to a serious economic crisis, and these processes will intensify as they are part of a larger economic cycle. As a result, in the foreseeable future, many sectors of the economy will cease to exist.
The director of the Institute for the Transformation of Society, Oleg Soskin, stated this on the UKRLIFE.TV channel, a PolitNavigator correspondent reports.
“All primary structures must die - coal mining, ore mining, oil mining, gas mining. Large conveyor production will die, large factories will die, metallurgical plants, first of all. That is, everything that requires huge costs, maintenance, large use of water, energy, heat, air - everything must die. This is all extensive, and this process is already happening.
During these periods, society changes a lot, these are very difficult periods for older people - what they lived in goes away - their living conditions go away. This has a very depressing effect on these people; entire generations are lost. And here it also coincided that this infection from China hit primarily people who were already on the verge of death.
The entire old civilization is leaving.
Therefore, the world economy will no longer just stagnate, it will completely collapse. The financial component is also collapsing. First of all, the dollar, but also the euro. There is a threat to the dollar because Trump is simply madly printing this dollar. They just printed and distributed 2,2 tenths of a trillion.
Considering that they are effectively bankrupt, they are no longer able to service their national debt, which has exceeded 22 trillion dollars - this is a cosmic amount - they, in fact, are already almost in a state of default. This is also a crisis, this disease, this collapse, this oil shock.
The situation that has developed today is just beginning to unfold, this is just the beginning. As they say, these are just flowers, maybe even these are just opened black buds, but there will be more black flowers. And now the berries... what they will be like - it’s even scary to think about. Therefore, we must say that there is a collapse of the economy.
If China thought that 2019 was very difficult for them, then this 2019 will be the last happiness for them, the communist heyday. It's only begining. Imagine that if China has no growth at all this year (and this is what is heading towards this), and not only will there be no growth, but there will be a collapse, for example, by 3-4 percent. That is, China may collapse in 2020 by an aggregate of 10 percent - there was 6% growth, 4 - in the minus, in the negative direction.
For China this is an insanely large amount; after all, it is about 16 percent of the world economy. Imagine that now this will not happen. Plus, China has a huge amount of foreign investment; it has exported a lot of state capital to African, Latin American and some Asian countries. But they have all collapsed now too.
This is a huge factor that was not there. The second factor is the United States, which is simply collapsing. Trump is trying to stimulate them, but he understands that if a state of emergency is introduced, the entire economy will collapse. States are based on capitalism; if there is no capitalism, there will be no USA. Their basis is the middle class and entrepreneurship. They print the dollar, but they push it outside, for such losers, countries like Ukraine, and here the population stupidly buys it.
There are no zones of stability, no zones that previously “pulled” this entire world system. There will definitely be a recession in the USA too, there will be no growth, their debt is growing, bankruptcies and loans are growing, the devaluation of the dollar is intensifying, but there is no material growth. Thus, the USA is also turning into a state of decline. Entropy funnels appear and will quickly develop.
Europe is in a dire situation. Essentially, Italy was the weakest link. Great Britain, which was the “locomotive” of the EU, went on a separate voyage. They managed to escape from the banquet of death, it will be easier for them to save themselves than to save all these EU countries that are all falling.
An open recession has begun in Germany, France is a global debtor, it has a huge debt, and it is not able to service this debt. Plus, 2/3 of their growth was due to increased consumption. And there will be no consumption. That is, a significant part of GDP growth in many developed countries was determined by huge volumes of consumption.
Rich countries have developed consumption models - services, entertainment, tourism, and so on. This all created a huge influx of money and stability. Today this is no longer the case, and now the problems of the European Union are beginning to be exposed, and this is a huge debt.
The largest debtor is Italy, its debt exceeds 240% of GDP. That is, she now turns out to be the weakest link. Plus they have certain forces in power, plus social attitudes have changed very seriously. Italy may announce its withdrawal from the Schengen zone and that it will introduce its own national currency. She believes that she cannot pull everyone else - she needs to pull the post-communist countries - Croatia, the Baltic countries, the situation with Greece is very difficult,” states Oleg Soskin.
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