THE AFTERMATH: A nightmarish picture of the world after the pandemic

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Officially, it is an early draft that is currently just being shared with a few academic and government contacts. However, I am not sure it will ever be released formally by the Federation as it outlines a stark future that none of us would want.

Basically, this report is saying that governments outside China went too far in their lockdowns. That the emergence of such a virus had been foreseen by both the WHO and FedEE and that the World’s hostility to China left them alone to deal with its outbreak, and thus its eventual spread to other countries.

It points out that there are a host of contagious diseases that already regularly kill more people than we have seen so far with COVID-19 – but with them there has been no lockdown.

Most startling of all, however, it points out that the extent of the lockdown (when the World was already on the verge of a recession) could well have tipped it over into an uncontrollable downward economic spiral.

This has been a potential threat ever since the abandonment of the Bretton Woods System by the US on the 15th of August 1971. Soon after that, all major currencies became “fiat currencies” that had value purely based on a shared feeling of confidence, rather than backed by inherently precious holdings such as gold (or a currency, like the dollar, that was so based) – that gave them true value.

What’s more, this opened the door to almost limitless government spending, based on borrowing and the free printing of currency (quantitative easing) to protect wealth and improve living standards. Thus, the US national debt alone now stands at US$25.3 Trillion.

This new affluence depended on one thing – that the World’s GDP would keep growing. If it did, then governments could afford to pay the interest on their borrowings and confidence would be maintained.

The World came near to losing that security in 2007/8 – but manage narrowly to escape collapse. That is why it has desperately been trying to avoid a further downturn, as the fear of the last recession still reverberates amongst the few who know how close things came to a wild panic in markets last time – and a final demise.

Now governments have done what the last global financial crisis did not achieve – set the global economy on a course for a downturn of at least minus 20% GDP.

As soon as the threshold of minus 15% is reached, things can easily get out of control and currencies tumble. We have already seen that in the stock markets, whilst the price of oil is now so low it cannot be given away. When the inherent value of currency consequently falls because confidence is shattered, however, prices will escalate, not tumble – in spite of low demand.

For currency traders, getting out of a position will be more important than the whole panoply of currency value tumbling down around their ears and the post Bretton World will finally be having to settle its account with the hot air it is built on.

I have sent this to a few journalists who ought to be aware of it – but in our conventional press release format, as that is the only way we may communicate such matters.

Maybe if it gets a bit of wider airing at this stage then people will wake up from their total preoccupation with the virus and realise what their governments have been doing to them and their futures.

What’s more, perhaps too we should all be more sensitive to the numerous diseases that already cause millions of deaths each year – let alone the 3.1 million children (UNICEF figure) who die annually of malnutrition – ignored and unlamented by the World. For that avoidable tragedy, we are all mutually culpable.

For further information please contact Eustace Fernsby at the FedEE Press Office on press@fedee.com and 0044 203 807 9205.

What is FedEE?

The Federation of International Employers (FedEE) is a leading corporate membership organisation for multinational companies. It was founded in 1988, with financial assistance from the European Commission. Today it is an independent body with corporate members all around the globe.

Link.
Aftermath: Multinational Prospects in a Post-Pandemic World

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One Response to THE AFTERMATH: A nightmarish picture of the world after the pandemic

  1. This too is was an unavoidable tragedy. If there were properly functioning public health systems in the US and emergency preparedness, this spiral into economic stupidity would not have been necessary. But instead, the US, the richest country in the world that has no respect for its citizens, refuses to spend a tiny fraction of what is now spending to bail out rich corporations on the health of its own people.
    Similarly, in Africa, corrupt leaders spend millions on private planes and expensive curative health care abroad for themselves and cronies, instead of investing tax payer money they steal on improving health systems in their countries. Like the US they are able to enrich themselves and their health by distracting the mass of idiots with tribal stupidity instead of using the country’s money to be better prepared to fight pandemics. But no, they now need to beg for scraps and talk nonsense about their useless efforts.
    Prevention is always cheaper than the cure, but when you have selfish, greedy people running countries, you reap what you sow.

    Newbie
    April 22, 2020 at 8:07 pm
    Reply

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