Financial crises have become more often about the causes of the new economic reality

On Tuesday, the Government and the Central Bank of Russia made a joint statement they have taken operational measures against the economic impact of coronavirus and volatility in global financial and commodities markets.

The World feels the global recession

Promised to support the financial sustainability of the industries and sectors of economy, population and regional budgets. The decision on postponement of tax payments for affected industries, granting them guarantees for the extension and deferral of loans. Will also expanded existing loan programs, etc.

The Joint statement, the Government and the Central Bank doing for the first time, which indicates the seriousness of the situation, the trigger of which was the pandemic of the novel coronavirus. It is associated with a turbulent movement in the stock and currency markets that move the world into a new economic crisis.

This was stated and the main economic soothsayer of Russia, Chairman of the accounts chamber Alexey Kudrin. He did not rule out that Russia and the world was on the verge of a new crisis. "The current crisis can be quite sensitive, Kudrin predicts and finds its main difference from the crisis of 2008-2009. – Then the driver of global growth was China, and now he himself suffered from the coronavirus".

With the crisis the current situation in the global economy compared Monday the Bank of Japan Haruhiko Kuroda. At a press conference in Tokyo, he expressed the opinion that the events of recent days not like the "shock of Lehman Brothers Holdings," as in Japan called the global economic crisis of 2008-2009.

"There are concerns of low economic growth for some time – said Kuroda. But as soon as in different countries there will be a reduction of infection by coronavirus, the economic environment begins to recover. Judging by the experience of China and South Korea, the epidemic is of a temporary nature."

Japanese banker Optimism not shared by other economists. So, Vice-President of the European Central Bank's Vitor constancio says bluntly: "We are moving to a global recession. The necessary measures are taken to curb the spread of the virus, will inevitably lead to this."
The Independent Newspaper cites the American economist, Jesse Colombo. Himself, who first recognized sulking "bubble" in the real estate market in the United States and warned of a coming economic catastrophe, which eventually became the crisis of 2008-2009.

Now Colombo warns the world about the powerful financial crisis. "We already went into recession before anyone heard of the coronavirus," said the economist and pointed out the existing "bubbles" in the markets of European real estate, U.S. stocks and others that may burst at any moment.

Faces of modern economy

The forecast Jesse Colombo is worth a listen not only because of its correct predictions of the last crisis. Estimates of the economist comes from the realities of the modern economy, and it has changed a lot in the new century. The classical form of education capital, based on commodity production, today it is not so relevant.

The World economy now is ruled by money. They were derivative securities, various debt and insurance liabilities. Everything is resold, creating a new capital, far removed from the actual production.

A similar scheme, for example, are formed now quotes the price of oil. The market is filled futures, allowing you to buy oil in a month or two at a prearranged price. And not the fact that the achievement indicated in the documents of the period they will be implemented in a real product. Most likely, speculators will sell them again with advantage.

Experts say that debt on primary commodities (hydrocarbons, gold, metals, etc.) and documents such futures five to ten times higher than the actual production of these products. So are formed the same financial "bubbles", which now warns the world Jesse Colombo. The new economic reality.

One big permanent crisis

This has changed the character and nature of crises. If earlier problems the economy has created an excess supply of goods now – the growth in unsecured product obligations. It was clearly shown during the crisis of 2008-2009 and threatens to happen again.

Although, what do you mean, again? Nobel laureate in Economics Joseph Stiglitz believes that the crisis has not ended. Monetary measures adopted by the governments and banks of the Western countries, only drove the disease deeper. Bought the so-called quantitative easing program unsecured debt companies and credit institutions, they are, in fact, preserved the capital of greedy financiers. Didn't allow them to fail, as it usually happens in a crisis.

In the end, the total amount of debt obligations in different segments increased, according to Jesse Colombo, almost 100 trillion dollars and close to 260 trillion. Now all this block of debt weighs on the global economy, threatening to destroy her once again.

Before this did not happen as often. Initially, the crisis was a period of fifty years. The industrial revolution reduced the period of overproduction of goods up to 25 years. Financial speculation began to create the economy is the problem every ten years. Now marked a cheerless prospect of a large permanent crisis.

Experts believe that Russia with these problems better than othersof the country. On Wednesday, the analysts of "Renaissance Capital" has made his prediction. About it reported RBC. "The reserves accumulated in the sovereign national welfare Fund (NWF), enough to cover the cost of the budget for five years, even if oil $20 per barrel (the price of Brent crude oil fell below $25 per barrel)",– quotes Agency of a rating of "Renaissance Capital".

At this price the economy will slow to 0.8 percent, inflation may rise to 7.5%. With such parameters Russia has experienced in the past decade. Because it is easy to imagine the scale of possible problems. I've had worse.

Since the "black Monday" (March 9) it's only been ten days. Quite so alarmist predictions to build yet. It is not excluded that the West will find a way to delay the collapse of their carousing financiers. However, such a delay will not save the world economy from the onerous burden of a gigantic debt. But the fact remains that the frequency of financial crises is directly proportional to the desire of speculators to warm your hands on the sharp changes of quotations and the desire of the fraudsters on a global scale to cover the crisis previously committed financial crimes.