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Abstract

the USA from the real estate and triggered a reaction of crisis trough the world, Greece was hit so hard that it was bankrupt.Nobody on the TV, nobody in the newspapers, no journalist was telling the truth. That is happening again. The majority of people think that this crisis will be smaller compared to the crisis of 2008. They couldn’t be more wrong.Why do I say that?Because it is so obvious that it can take your eyes out. First of all, this time, the problem is not in one sector, the real estate, but all the sectors have been hit. From normal jobs and people who own a small business or work there until the traveling industry in all the spectrum. Hotels and aircraft companies, restaurants, coffee and bars, shipping companies, and tourist guides.Most countries are giving allowance to people who can’t work. That is money giving from the state. But the state doesn’t collect the taxes from all the businesses that are closed. So how can it be that the state will be able to have a positive account when they give more than they collect? Furthermore, a lot of small businesses will not survive. That increases the number of unemployed people.Back to my country, Greece. In the media, at the beginning of the Covid19 crisis, they were saying that the decrease in AGP will be on a scale of 3 to 4%. After a week they were saying that it will be about 5 to 6. Next week they were saying that it could be from 7.5 until 12% in the worst case. The same week they said that the Greek national Bank predicts that it will be

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around 5.5%.Do you see what they are doing?They prepare you for what will come. They don’t want to tell it straight forward, they said it in a way that they couldn’t be wrong. They say all the possible outcomes but try to keep you calm and optimistic.I don’t want to ruin your day but when it comes to numbers, it doesn’t matter if you are optimistic or pessimistic. It is just mathematics.Only one person (politician ) in Greece, predict that the crisis will reduce the AGP around 18 to 24%, he’s name is Gianni Farufakis. That is my belief too. Germany gives 9 billion euros to Lufthansa to rescue from bankruptcy. Unfortunately, they can’t give money to all the corporations who are facing financial problems.But even if they could I am here to remind you that this money came from somewhere (Central banks ) and must be returned there one way or the other.Guess what?The governments will find a way to take all this money from the pure and middle class in the form of taxes to return it to the banks. Even so, that will be a huge archive. The impact on the social community will be enormous.In an uncomfortable way, this crisis could be the right time to rethink and redesign our financial and monetary system. Doing something that implies to reevaluate our values and the way our society is structured is a must.It is time to do this. Everybody knows it but nobody has the knuckles to do it. If not we, then who? If not now then when?</article></body>

Financial Crisis and COVID-19

How big will the financial crisis caused by COVID-19 be?

We all live under the new threat of the invisible enemy, COVID 19. Few of us realize the impact of the virus in our future life.

I don’t speak about the new normal in our lives. Stay home, be safe. Always wear a mask. Don’t get social. Live in fear, you know you can be infected or infect your loved ones.

I speak about the impact that COVID 19 will have in the economy and that will change our live us we know it.

I read and hear that the USA has printed some trillion dollars, Japan the same with yen and finally, the EU has agreed to give some millions to each of the countries according to the damage from the virus and the population. That is nice and that should humans do. The one thing that I am thinking of is that this money comes from somewhere and must be returned.

People are happy because after so many years of work, every day going to the office, finally they have the opportunity to stay home and get paid. They will realize that first of all, after a while, they get bored, but the most important, that this money must be returned to the banks.

Why?

Because that’s the way our monetary system works. I am living in Greece, I am a Greek. When the crisis of 2008 began in the USA from the real estate and triggered a reaction of crisis trough the world, Greece was hit so hard that it was bankrupt.

Nobody on the TV, nobody in the newspapers, no journalist was telling the truth. That is happening again. The majority of people think that this crisis will be smaller compared to the crisis of 2008. They couldn’t be more wrong.

Why do I say that?

Because it is so obvious that it can take your eyes out. First of all, this time, the problem is not in one sector, the real estate, but all the sectors have been hit. From normal jobs and people who own a small business or work there until the traveling industry in all the spectrum. Hotels and aircraft companies, restaurants, coffee and bars, shipping companies, and tourist guides.

Most countries are giving allowance to people who can’t work. That is money giving from the state. But the state doesn’t collect the taxes from all the businesses that are closed. So how can it be that the state will be able to have a positive account when they give more than they collect? Furthermore, a lot of small businesses will not survive. That increases the number of unemployed people.

Back to my country, Greece. In the media, at the beginning of the Covid19 crisis, they were saying that the decrease in AGP will be on a scale of 3 to 4%. After a week they were saying that it will be about 5 to 6. Next week they were saying that it could be from 7.5 until 12% in the worst case. The same week they said that the Greek national Bank predicts that it will be around 5.5%.

Do you see what they are doing?

They prepare you for what will come. They don’t want to tell it straight forward, they said it in a way that they couldn’t be wrong. They say all the possible outcomes but try to keep you calm and optimistic.

I don’t want to ruin your day but when it comes to numbers, it doesn’t matter if you are optimistic or pessimistic. It is just mathematics.

Only one person (politician ) in Greece, predict that the crisis will reduce the AGP around 18 to 24%, he’s name is Gianni Farufakis. That is my belief too. Germany gives 9 billion euros to Lufthansa to rescue from bankruptcy. Unfortunately, they can’t give money to all the corporations who are facing financial problems.

But even if they could I am here to remind you that this money came from somewhere (Central banks ) and must be returned there one way or the other.

Guess what?

The governments will find a way to take all this money from the pure and middle class in the form of taxes to return it to the banks. Even so, that will be a huge archive. The impact on the social community will be enormous.

In an uncomfortable way, this crisis could be the right time to rethink and redesign our financial and monetary system. Doing something that implies to reevaluate our values and the way our society is structured is a must.

It is time to do this. Everybody knows it but nobody has the knuckles to do it. If not we, then who? If not now then when?