Post Corona...

[MovingAverage]

How's it going everyone...hope your managing to stay corona free.

Governments worldwide are resorting to unprecedented measures to keep the global economy grinding along. There's no such thing as a free lunch, right? So what the hell is the economy going to be like once we get this corona virus under control and start resuming a normal life again. There will be a price that we will all pay as a result of governments around the world running their "money printing" at rates never ever seen before and there will be implications, very serious implications, that will flow from this.

So what do you reckon the global economy will look like when this **** is over and what is the price we (and indeed our future generations) will pay for this?

Stay safe everyone.

 

[Dona Ferentes]

wow, the only thing I know is that all the sure fire scarios (I like that! 'Twas meant to be scenarios, but keyboard took over) postulated after the GFC never came to bear. Rampant inflation was one of the biggest. then along came QEZIRMMPPT from various Central Banks - just getting in ahead of Invest Oh Boy - and we had a huge asset bubble.

Now, Moving on, you pose two questions

what the hell is the economy going to be like once we get this corona virus under control and start resuming a normal life again

or at least make a few points. But, are the mutually exclusive, is one dependent on the other or, in a worst case set of circumstances, will either happen? The actions governments have taken have avoided the 1930's problems but, necessarily, replaced them with other problems. DEBT DEBT and more DEBT

As to paying for it, there was always going to be a reset; Covid-19, has brought it along faster and in a more ugly way than we could ever imagine. TAXES TAXES and more TAXES
We also sit at the time of transformational change in technological and medical advances. These come at a cost, too, and the other great poser here is if everyone will have fair access to them; to date, it has not been the case.

 

[SirRumpole]

I think there will be agreements for global debt writeoffs, otherwise the world economy will never recover.

Virtually every country in the world will introduce measures that will cost them so much that they will never be able to pay for it with their own resources, so the reasonable thing to do is to write off their debts.

 

[Knobby22]

Bit of a mini depression but will clear out the deadwood + lessons on supply chains, people learning a bit of reality and government managing crises will in my view create a rosy period which might last 5 years.

The big worry is the continuing racking up of debt especially in the USA and Europe. The USA scares me and Europe is going to have to bite the bullet. I can see that is where the next disaster might come.

 

[Dona Ferentes]

On a more petty level, I think travel is going to be 'revisited' Cruise ships? Nah. Air tix that have no flexibility or, worse, bullsh1t insurance have to change. Hotels without openable windows? Not for me.

Think local, stay local

 

[MovingAverage]

I think there will be agreements for global debt writeoffs, otherwise the world economy will never recover.

I think that will be a given, but the issue with "writeoffs" is that there will be a loser so I do wonder how the loser will manage that writeoff as it will have very serious implications.

 

[MovingAverage]

just getting in ahead of Invest Oh Boy - and we had a huge asset bubble.

I love watching the love hate relationship you two have

 

[qldfrog]

Between no cash accepted , gun and ammo sales forbidden, and other laws going one, another set of screwing of our liberties and more reason to seize assets and move toward socialism heaven in the economic field while the nations will take over the globalists in geopolitic, immigration
In one word, national socialism
1933 again...

 

[MovingAverage]

The actions governments have taken have avoided the 1930's problems but, necessarily, replaced them with other problems. DEBT DEBT and more DEBT

I personally think that the current actions of governments (while completely understandable) are merely kicking the can down the road. You said it...DEBT DEBT and more DEBT. You just can't keep writing off debt with out implications. There is no free lunch my friends...no free lunch.

 

[MovingAverage]

In one word, national socialism
1933 again...

So China's cunning plan is working out perfectly

 

[qldfrog]

So China's cunning plan is working out perfectly

When you can plan for the next 50y while the democracies plan for the next election in 2 y, while needing to satisfy 50pc or more of the population self interest
Not very hard to be a winner
the Han uberall

 

[Smurf1976]

One thing I'll predict is higher rates of taxation overall.

There's a debt to be repaid, there's a society to be rebuilt and most of those who would typically argue against tax and government are unlikely to do so going forward given the sheer number of both individuals and businesses who are now on welfare of some sort.

The question is what gets taxed not whether there's going to be more tax collected.

That re-writes the entire political and economic agenda really.

 

[MovingAverage]

One thing I'll predict is higher rates of taxation overall.

There's a debt to be repaid, there's a society to be rebuilt and most of those who would typically argue against tax and government are unlikely to do so going forward given the sheer number of both individuals and businesses who are now on welfare of some sort.

The question is what gets taxed not whether there's going to be more tax collected.

That re-writes the entire political and economic agenda really.

I’ll agree with you on that smurf but I will say that is a very Australian way of viewing things. You can build a strong economy with lower tax rates—take Singapore for example. But Australian government left, right or centre are incapable of thinking beyond just raising tax rates

 

[qldfrog]

One thing I'll predict is higher rates of taxation overall.

There's a debt to be repaid, there's a society to be rebuilt and most of those who would typically argue against tax and government are unlikely to do so going forward given the sheer number of both individuals and businesses who are now on welfare of some sort.

The question is what gets taxed not whether there's going to be more tax collected.

That re-writes the entire political and economic agenda really.

National socialism
Allende's government in Argentina: basically communism, massive exodus of anyone brighter than the average,seizure of assets, currency devaluation every 10y until coup d etat or friendly help from the Han brothers

 

[MovingAverage]

Timely article: https://www.abc.net.au/news/2020-03...lar-coronavirus-stimulus-be-paid-for/12105774

 

[satanoperca]

So China's cunning plan is working out perfectly

Not cunning, brilliant!

Just our dumb arse leaders and the rest of society who has no ability to understand the card that has been played.

 

[satanoperca]

National socialism
Allende's government in Argentina: basically communism, massive exodus of anyone brighter than the average,seizure of assets, currency devaluation every 10y until coup d etat or friendly help from the Han brothers

Agreed, we can never repay.

When will people stand up with some conviction and fight

 

[Knobby22]

It could be paid easily. The super wealthy would just need to pay their share of taxes.
Of course they don't want to do that so will use their influence to distract the peasants.

You are all getting carried away.

 

[matty77]

When this is all over..

The rich will be far richer
The poor will be far poorer
Government will have far more control over our daily lives.

The world will be a worse place, but at least Greta has been quiet for few months so there are some positives.

 

[wayneL]

One thing I'll predict is higher rates of taxation overall.

There's a debt to be repaid, there's a society to be rebuilt and most of those who would typically argue against tax and government are unlikely to do so going forward given the sheer number of both individuals and businesses who are now on welfare of some sort.

The question is what gets taxed not whether there's going to be more tax collected.

That re-writes the entire political and economic agenda really.

GST 20% for a start IMO