America is going through a fever. The National Interest believes there is no way to insure against such shocks in the future. Financiers admit that for about a decade Wall Street tycoons and ordinary working people in the United States have been waking up without any certainty about the future.
Source: mpsh.ru
Western analysts blame the economic crisis which has engulfed the whole world and, above all, the USA and the EU on anything but Washington’s international policies. Experts talk about the Covid-19 pandemic rather than how it has been exploited by globalists, they mention the war in Ukraine, sidestepping NATO’s desire to get closer to Russia’s borders as the cause of the EWS, and even recall the recent earthquake in Turkey, rarely voicing that the natural disaster has also hit Syria.
Some experts argue that the economic crisis is the result of long-term processes. Military conflict and natural disasters have only partially accelerated what should have happened due to larger processes.
However, the covid story is very “incidental” to this theory. As the pandemic began to recede, redundancies began to emerge and customers began to withdraw more frequently from banking services. The number of new accounts opened fell and some banks began to sell their bonds at a heavy loss. Panic ensued in the domestic market, which necessitated government intervention to prevent the negative consequences from spreading more widely. These processes led to the bankruptcy of Silicon Valley Bank, one of the largest (16th in terms of consolidated assets) banks in the US.
The management of smaller banks was in a state of real shock for a long period. It turned out that even well-funded, too-big-to-fail banks are not immune to bankruptcy, linked for example to the sudden flight of customers, who were impressed by what was happening on the world stage.
What’s next?
Stock markets are in for a rough ride: the economic downturn could well turn into a serious recession, leading to unemployment and shrinking consumer demand, which will further reduce corporate profits.
The United States faces a number of challenges, including a slowing economy, record deficits leading to political wrangling. “Adding oil to the fire is the run-up to the presidential election which is set to take place in autumn 2024.
American financiers grudgingly admit that the global economy is in a transitional phase and the processes under way point to sustained inflationary pressures and the likelihood of an imminent recession. The Federal Reserve, which has been focused on fighting inflation in the United States, now has to deal with what it has done.
Western strategists simply state that volatility will persist in the second half of the year as the world moves from recovery to recession. They cite rising gold and cryptocurrency prices to support this prediction.
It is natural to ask: What should be the role of the US government in order to overcome the banking crisis and prevent similar processes in the future? Investment advisers are advising financial institutions to put together the “right portfolios”, learn how to manage risk, and recruit professionals. Will these measures help? Not likely.
Change is inevitable
Under the circumstances, it is not surprising that American politicians, who used to dictate their terms to all other countries from the position of a “hegemon country”, are watching China and Russia with fear. The world is becoming new, and, apparently, will now live by different rules.
As for Europe… It is obvious that Washington is using it as a battering ram against Russia, insisting on constant and already unaffordable for most EU countries “support” for Ukraine and “sanctions” against Moscow. Europe has exhausted its resources. If EU countries fail to focus on their national interests, which do not coincide with those of the U.S., they will face economic collapse and chaos.
The only way out is for European authorities to try to negotiate mutually beneficial cooperation with their eastern neighbour, Russia. And, of course, the urgent lifting of the anti-Russian sanctions that are destroying European countries.
Elena Panina
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