The topic of the economic crisis does not go down from the front pages of newspapers and top portals on the internet. Unfortunately, neither economists nor officials or politicians give us comfort. Now the head of the International Monetary Fund (IMF) took the floor on this matter.
IMF: We face a gigantic problem
Kristalina Georgieva, head of the International Monetary Fund (IMF) said on Friday that the current economic crisis would be “way worse” than the one that started in 2008 “We face a gigantic problem,” she added.
And he is right. Let us remember that the crisis from a decade ago only concerned the ‘virtual’ financial market. Today, we are dealing with an economic crisis of flesh and blood. The economy has finally stopped and supply chains were cut.
“This is a crisis like no other, (…).” Never in the history of the IMF have we witnessed a situation in which the world economy came to a standstill (…) It is a crisis that requires us to act together, ” Georgieva said.
In her opinion, emerging markets will suffer the most. Already 90 billion dollars have escaped from them, which was to be allocated to various investments. In her opinion, all of this will pose a huge threat to Africa.
“There it is necessary to provide emergency funding…. We’re dealing with a gigantic problem, but many (remedial) steps have already been taken, ” she added.
“HUMANITY’S DARKEST HOUR”
“This is, in my lifetime, humanity’s darkest hour – a big threat to the whole world – and it requires from us to stand tall, be united, and protect the most vulnerable of our fellow citizens,” said Georgieva.
The head of the IMF believes that the wave of bankruptcies and mass layoffs. All this will make economic recovery difficult. And certainly much more difficult than a decade ago.
As a rescue, one trillion dollars is to be spent. “War budget.” Georgieva also admitted that many countries had turned to her institution for financial assistance. She said that IMF will cooperate with the Paris Club and the World Bank” on a moratorium on the repayment of the debts of these countries.
Georgieva had already said that it is “obvious” that economies around the world have gone into recession.
In the US, the authorities will spend $2 trillion to save the economy. While this might give some short term breath to the economy, the fear from inflation will push investors to invest in hard assets like Real Estate, Gold and Bitcoin.
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