Will a Struggling Global Economy Survive COVID19 ?

Will a Struggling Global Economy Survive the Coronavirus?
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Coronavirus SARS-CoV-2 has more than modest potential to be the straw that broke the economic camel’s back from Trump Trade War and all-around massive policy screw-ups that pushed the global economy into the “Trump Slump” of the past few years.

Trump’s voters at home in the U.S. crowed – and still crow – about record low unemployment rates and booming 401Ks. They almost always conveniently ignore the fact that Trump merely continued the economic growth of the Obama administration before him, and did so without increasing the rate of growth. They believe this apparently, because Trump’s own mouth and all his echo chambers in the Right Wing Media bubble, plus his sycophants in the GOP, keep parroting the false claim that the economy was “weak” under Obama, and “turned around under Trump.” These statements are just factually incorrect, but facts never seem to get in their way of saying it enough until they believe it.

However, regardless what the Trump Bubble believes and continues to scream, severe underlying damage was being done to the global economy, of which the U.S. is still a part of, as a result of his ongoing Trade Wars.

SARS-CoV-2 coronavirus may ultimately be blamed for now incipient global growth downshift which increasingly looks like it is rapidly spiraling into the makings of what could be a severe global recession, but it would be foolish not to hold Trump accountable for putting so much of the global economy at risk in the first place.

The Fair Observer headline article:

On February 24, the World Health Organization declared that the world should prepare for a possible coronavirus pandemic . Outbreaks in South Korea, Iran and Italy have caused alarm. Clearly, the virus has traveled widely and rapidly. Authorities have canceled concerts, carnivals and football matches as well as closed schools, imposed curfews and restricted travel. Despite these measures, COVID-19 has now spread to about 30 countries and infected tens of thousands of people. Stock markets from New York and London to Hong Kong and Mumbai have crashed. They are waking up to the fact that the Chinese economy is in big trouble. Zhu Min, a former official of the International Monetary Fund (IMF), estimates that the Chinese GDP might have lost $196 billion this year already. Tourism has been hit badly. Consumer spending has decreased. Factories are struggling to keep up production. As a result, the global supply chain has been disrupted. Stores might run short of both clothes and iPhones, as well as face masks and essential pharmaceuticals. Epidemic Woes The coronavirus outbreak has turned out to be what Nassim Nicholas Taleb calls a black swan event. It was unpredictable. Its effect on the global economy, however, might be a touch more predictable. In July 2019, Nouriel Roubini, an economist popularly known as Dr. Doom, foresaw “the trade and tech war and cold war” between the US and China leading to deglobalization, decoupling of the global economy and a global recession . Roubini was not alone predicting doom […]

On February 24, the World Health Organization declared that the world should prepare for a possible coronavirus pandemic. Outbreaks in South Korea, Iran and Italy have caused alarm. Clearly, the virus has traveled widely and rapidly. Authorities have canceled concerts, carnivals and football matches as well as closed schools, imposed curfews and restricted travel. Despite these measures, COVID-19 has now spread to about 30 countries and infected tens of thousands of people.

Stock markets from New York and London to Hong Kong and Mumbai have crashed. They are waking up to the fact that the Chinese economy is in big trouble. Zhu Min, a former official of the International Monetary Fund (IMF), estimates that the Chinese GDP might have lost $196 billion this year already.

Tourism has been hit badly. Consumer spending has decreased. Factories are struggling to keep up production. As a result, the global supply chain has been disrupted. Stores might run short of both clothes and iPhones, as well as face masks and essential pharmaceuticals.

Epidemic Woes

The coronavirus outbreak has turned out to be what Nassim Nicholas Taleb calls a black swan event. It was unpredictable. Its effect on the global economy, however, might be a touch more predictable. In July 2019, Nouriel Roubini, an economist popularly known as Dr. Doom, foresaw “the trade and tech war and cold war” between the US and China leading to deglobalization, decoupling of the global economy and a global recession…

Roubini was not alone predicting doom and gloom…

The Straw That Breaks the Camel’s Back […]

Click here to read the full story www.fairobserver.com

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