Over the past years we had faced an economic growth considering that interest rates had started reaching lows and people had started spending money.
The last months, possibly during summer 2022 and some months after Putin's invasion to Ukraine we experience a new recession, almost ten years after the previous one.
I think that the problem is global - and not specific to my country. Gas prices are soaring, prices for items for basic needs etc. toilet paper are increased by 25-30% and bread, milk eggs and food in general are higher in price for almost 40%.
On the other hand, I cannot see any increase in salaries and see that we are in a stable economic situation. Having said that, the purchasing power of consumers is decreased, and inflation keeps increasing in rates.
Elon Musk said in an interview that this situation is going to continue till
Spring 2024.
This painful situation has a major impact to all aspects, even cryptocurrencies. The crypto market is not going to recover if the economic situation is not going to be reversed. This stems from the fact that neither investor not crypto startups will take the risk to invest money right now.
If Musk is true, we are going to see only the strong ones survive during those two years...
You don't have to be Elon Musk to understand that today's crisis is more complex. Here Musk is absolutely right, although recently he sometimes surprises with his statements
But back to the problems. If the financial and economic crisis a decade ago was triggered by "soap bubbles" and overvalued areas of the economy, today's problem is much more complicated. Today's problem concerns more significant areas:
- a total violation of world legislation, obligations, with the complete impotence of all international institutions that should have dealt with such issues.
- corruption, venality, cowardice, betrayal in the highest echelons of politicians in many countries, which has surfaced now, but was founded decades ago. Although even now many are sold faster than "port prostitutes".
- monopolization of the world's leading economies, energy supplies from inadequate suppliers. Which leads to a global change in hydrocarbon supply patterns. As well as long-term problems in the industrial sector.
- the coincidence of several global problems, in a short time. Covid and then the global terrorist war unleashed by Russia against Ukraine, and the economic war of Russia against the EU.
- Now we will still be watching the squeals and tantrums of the two "fraternal terrorist regimes" - Russia and Iran, due to the expected investigation into the supply of weapons to the "second most powerful army in the world" from Iran, which automatically becomes an accomplice in this crime.
Therefore, most likely, the world will finish off the problems caused by all of the above for another 3-5 years (optimistic forecast)