Loading ...*IMF warns of new ‘Great Depression’, Russia ahead of the curve due to increased cash & gold reserves
January 22, 2020
Last week, the IMF issued a stark warning about the global economy. While most large Western states are vulnerable to a new crisis, Russia has prepared its defenses.
Kristalina Georgieva isn’t any sort of conspiracy theorist; she’s the head of the International Monetary Fund. And when she warns that the global economy risks another “Great Depression,” you would think everyone would listen.
But the Western reaction to her statement last week has been muted, with plenty of media outlets leaving it ‘buried in the mainstream’. Or simply ignoring the story.
For instance, rudimentary Google searches suggest neither the Financial Times nor the Economist have covered her comments at all. If so, it’s ethically questionable but also understandable, in a cynical sense, given their complete attachment to the doctrine of Neo-liberal economics.
One place Georgieva’s words haven’t fallen on deaf ears is Moscow, because her warning merely confirms what experts in the Russian capital have been saying for years: a major Western financial crash is both inevitable and reasonably imminent. And it’s going to make the 2008 meltdown look mild by comparison.
The reasons are simple, according to insiders in Russia: western governments have accumulated too much debt over the past decade, and there are a number of concerning bubbles in the system. These include US stocks, German and British property, and the oversized valuations of tech companies, especially startups unlikely to ever return their costs. Throw in aging workforces, wage stagnation, higher living costs, and disruption to traditional industries from IT innovation, and you have all the ingredients needed for a ‘big bang’.