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Dan Lucas: the Bang for the bang of the global economy

Already, in the autumn showed signs of a slowdown in the global economy. Trade wars between China and the united states had made its mark. Forecasters and the

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Dan Lucas: the Bang for the bang of the global economy

Already, in the autumn showed signs of a slowdown in the global economy. Trade wars between China and the united states had made its mark.

Forecasters and the central bank governor was just talking about a slowdown, and whether a ”more normal levels” are not in a recession.

But they can have a reason to change his choice of words, the forward spring.

coronavirusets distribution. The world's industrial production is on the back burner, as well as to the trade, and when people are away from their desks, or be stopped from making the trip. All the regions are put in quarantine. The airline industry is facing a huge loss, as well as the hospitality industry.

as the economy hangs in the balance, as the negative news has hit that hit the share prices, but also to what is known as the real sectors of the economy, to the production of goods and services.

I can see it now. The fact that oil prices are plummeting is a result of the new coronavirus. This has led to a decline in the demand for oil. That was the reason why the Opec countries, with saudi Arabia at the forefront, trying to persuade Russia to agree to production limits in order to keep up with the price.

the failure of the Negotiations, and the kingdom of saudi Arabia, which sits on one-fifth of the world's oil reserves are opened up, instead of increasing the production and started a price war.

It may sound pleasing to the speed of light in a cheaper fuel, but in fact, it is a krissignal, which, together with the other signals pointing to a global economic recession, which, in turn, can lead to an outright recession, the shrinking of the economy in a number of countries.
Link to a graphic in the new coronavirus, and now oljepriskriget help as to what could be called a perfect storm of various events that reinforce the negative trend.
the Link for the graphic

tumbling, also the share prices in stock markets around the world. Since the middle of February, the Stockholm stock exchange's leading index, OMXSPI index fell by almost 20 per cent. Based on the twelve months, there has been a year of increase in share prices wiped out – which will be felt by pensioners.
the Link to the graphics

the Link for the graphic

at the same time as the stock prices and the price of oil is plummeting, rushing in the place of the gold, the age-old economic skyddshamnen in times of uncertainty. On Monday morning, has reached the gold prices 1.702 u.s. dollars per troy ounce – the unit that gold is measured in. This is the highest price in seven years.

that the states can put in order to curb the trend. The us central bank, the Fed, the cut in the last week its key interest rate in an effort to stimulate the u.s. economy. It is likely that other central banks will follow.

Sweden is more and more forecasters, the bank, which as recently as early december, raised the interest rate is going to be forced to lower it. It could be as early as april.

in The next few weeks will be crucial. If it is new, however, the spread can be stopped in the near future, will not the effect be so great for the world economy and, as a result of the Swedish language.

to be long enough not to interest rates. So we need other economic incentives at the same time, that health care is going to need more resources in each of the cases in the hardest-hit countries.

When the financial crisis was over, in the event of an emergency in the autumn of 2008, the major economies, the g-7, the command is launched by the joint planning of how the world economy could be saved from a meltdown of the core.

These noises have been heard even from the u.s., the central bank and the international monetary fund, but so far, it is the cries of the weak when compared with the financial crisis.

There are two main reasons for this. For 10 or 12 years ago there was no country in the world is so in debt that many of them are to this day. It is, therefore, a more limited scope for government borrowing to channel money into the economy.

the other difference is in the policy. The populism that has swept across large parts of particularly the western world since the financial crisis, has led to a more nationalistic policy in which international cooperation is not held in high esteem.

Donald Trump, for example, as soon as the contempt for international institutions and has been denied a new judge to the world trade organisation, the world trade organization's dispute settlement understanding.

with each and every one is himself, it will be difficult to see the signs of international cooperation, in order to prop up the economy. It has even been difficult for Italy in the coronasmitta the hardest-hit country in the EU to have their ”european friends” on the mouth piece to the nation's health care professional.

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