BEYOND Covid-19, there is the very real specter of a global economic meltdown (GEM). The near-global shutdown indicated by recent acts of Canada, the US, France, Italy and other leading countries of the world, including the Philippines, brought about by the Covid-19 pandemic, has sent the global economy into a tailspin as workers and customers are ordered to stay home.
What was seen as a mere public health crisis in China, has spread throughout the world, causing virtual stock markets’ collapse. Fears of coronavirus have been matched by worries about job losses and business failures.
The worst economic collapse in history is on its way. Be Prepared. Just what are the signs? In less than 2 years (517 days), the stock market will drop by more than 56%, millions of people worldwide will lose their jobs, homes, and life savings. It will the worst time for the global economy since the great depression. Over the course of just 21 days, the market has dropped by roughly 20%, the world has seemingly shut down, and we just might be on the worst economic trajectory in history.
So how did we get here, where do we go from here? As we all know, there is Covid-19 spreading and halting world economy. When the pandemic had its first outbreak in China, it caused the Chinese to shut down its manufacturing sector in order to help prevent the spread of the virus. This has caused real problems, as one-third of all products in the world is made in China. China is the global supply chain of the world, so when China experiences delays in production, the entire world’s economy will experience delays as well. Because of this supply chain slowdown, we have seen many large companies experience a slowdown in their sales and revenue--if you don’t have your product to sell, then you can’t make any money. The same end result applies to other manufactured products, from portable solar off-grid units through medical and health products.
Also, because people are being asked to stay inside and work from home if possible, we can expect as high as an 80% drop in automotive sales in some countries like China. And this effect keeps trickling down. If the car companies are seeing a drop in sales and revenue, then so will its suppliers. And if the suppliers see a drop in revenue, so will the raw industries that work with suppliers--effect radiating to all other companies that are connected to the automotive industry.
What happens when a company sees a drop in sales or revenue? We will see layoffs, or even bankruptcies, leading to higher unemployment rate which would lead to fewer purchases being made by consumers, which would lead to fewer to nil sales being made by businesses. The cycle continues until the economy hits a low point like the great recession or the great depression.
So, what survival measures can we take? To be continued...