The world is “on the cusp” of a new era marked by instability, disorder and the fragmentation of the previous period of globalisation, Deutsche Bank, the largest bank in Germany and one of the largest financial institutions in the world, has predicted in a new report.
In a document for clients entitled the ‘Long-Term Asset Return Study’, the bank suggests that the coronavirus crisis has accelerated, but not caused, the coming about of what lead analyst Jim Reid refers to as the new ‘Age of Disorder’, in which deteriorating relations and divergent interests between the United States and China replace the age of “unfettered globalisation” (and smooth, easy profits) which began in the early 1980s.
MMT gets a mention.
Deutsche Bank’s analysts also predict that ‘modern monetary theory’, or so-called ‘helicopter money’, a controversial monetary policy which proposes central bank payments directly to citizens to stimulate economic growth, will become mainstream in the coming years and lead to “even higher debt” burdens among nations. One likely side effect is expected to be a rise in inflation....
Sputnik International
Deutsche Bank Predicts New World ‘Disorder’, Cold War Between US and China
See also
Reminiscence of the Future
Hm, What Does It Look Like.
Andrei Martyanov
Deutsche Bank Predicts New World ‘Disorder’, Cold War Between US and China
See also
Reminiscence of the Future
Hm, What Does It Look Like.
Andrei Martyanov
Really bearish outlook....
ReplyDeleteBearishness really high from Mike this week:
ReplyDelete“AAII weekly sentiment.
Bullish sentiment fell 7.1 percentage points to 23.7%. That's the lowest level since the week ending Aug 6 and 38% below the historical average.
Neutral sentiment rose 0.4 percentage points to 27.8% and 12% below the historical average.
Bearish sentiment rose 6.7 percentage points to 48.5%. That's the highest level since the week ending June 25 and 59% above the historical average.“
Bearishness/neutral must be cutting into MAGA people if this is a good survey...
One likely side effect is expected to be a rise in inflation....
ReplyDeleteIf it's ethically produced (e.g. a Citizen's Dividend) and not excessive, price inflation should not be a problem.
But who believes in ethics?