Sadly, this time around Europe, won’t be able to trim the fat, as there’s none left.
AS for the US, it’s been desperate to get one last breath before getting submerged underwater with zero interest rates. And again, over the last couple of years, Trump would start trade wars left and right, as if there was no tomorrow. It seems that this time we are about to learn just how deep the rabbit hole goes.
As a matter of fact, the World Bank is convinced that should expect a new global financial crisis to come upon us in the nearest future. This was stated in the report titled Global Economic Prospects, Darkening Skies, which states that the year 2019 may easily become a turning point to the world economy against the backdrop of the slowdown of the world economy.
Today, there are too many factors that can make the matters even worse than they are now. Of course, the leading among those is the over unpredictability of the Trump administration as it’s seems a bit too willing to turn its back on the previous international commitments of the United State, be it the unilateral withdrawal from the Iran nuclear deal, hints that the US will abandon the Intermediate-Range Nuclear Forces Treaty or threats to impose new economic punishment on those players who prefer to agree to disagree with the crumbling hegemon.
According to Stratfor, the great power rivalry with China and Russia pushes the United States to downgrade its military commitments in Africa and the Middle East.
Yet another factor is the the Fed’s raising key rate for the first time since 2014. This means that money becomes more expensive. Thus, the Fed is preparing to become a beneficiary of the crisis, along with those powerful and wealthy people, who will be buying bonds at about half the price at the height of the crisis.
We may as well add public widespread public disobedience, riots, mass looting, revolutions and military conflicts plunging a number of continents into chaos.
The already dire situation in such countries as Yemen, Afghanistan and Ukraine can rapidly go from bad to worse. We can expect the United States, Saudi Arabia, and Israel launching military aggression against Iran, due to the continuing deterioration of the situation in the Middle East. Things don’t look any better for Africa and Latin America too.
It didn’t take long for trade wars, cyberattacks, shifting defense strategies and arms races, to convince the world that this is the new and uncomfortable global reality.
Source: New Eastern Outlook
https://journal-neo.org/2019/01/24/brac ... he-corner/