Mikhail Khazin: "Politicians around the world are looking for someone to blame"

7 апреля 2021, 20:27
Economist Mikhail Khazin on the air of the radio station "Aurora" gave an assessment of the crisis processes taking place in the world now.

“When something starts to hurt you, Honduras stops worrying.

The whole problem is that everywhere now is in the ass.

If you look at today's Europe and the whole world in general, you will get an approximate transition between “horror” and “horror-horror-horror” (as in the joke about the brothel).

Because theoretically, perhaps, the problems could be solved if, firstly, they were not everywhere at the same time, and secondly, if (the authorities) somehow reacted to what is happening.

So far, one thing has taken place: where there is emission, inflation has begun, where there is no emission - for example, in Indonesia - deflation, and this is still going on. At the same time, everyone understands that it is impossible to stop emission, because this will automatically mean a sharp decline in the standard of living of the population - and then everything will be destroyed.

At the same time, the effectiveness of this incentive is constantly falling, the standard of living of the population is falling, and unemployment is growing.

And everyone understands that the trigger will be the collapse of the financial markets. And everyone understands that it will happen. Because this is no longer possible. And so everyone is sitting and waiting.

The main problem that worries politicians today is who to blame?

...In the United States, meanwhile, a record was set for falling incomes of American citizens. Minus 6%. This is for the last month on an annualized basis. The absolute minimum for the entire observation period, for more than 60 years.

Why did this happen? The incentive mechanisms stopped working. Because of this, sales and household expenses fell. This means that stimulation needs to be increased. That is why Biden is adopting a $ 1.9 trillion program.

The trouble is that Biden's model differs from Trump's model in that Trump supported the real sector, which at the very least pays salaries, while Biden supports the financial sector.

But if you help financial structures, where are the guarantees that they will give this money to people? They don't.

In iron logic - if in the current situation you give money to people, they will not return the loans back. Therefore, we will invest in the stock market, which is why it is growing. And the incomes of the population are falling.

There is already talk about the need to launch the next program - 2 trillion. dollars.

It looks like inflationary processes have already begun. And they are pretty strong. Inflation, first of all, depreciates the income of citizens. And thus, the national debt is growing wildly".

You can listen to the broadcast with the participation of Mikhail Khazin here.

#Crisis #Donald Trump #World #Politicians #Joe Biden #Trump #Economy #Situation #Politics #Аналитика #Analyst
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