Читать книгу The Post Pandemic Economy - William E. Scholz - Страница 18

The coronavirus Pandemic has cost the lives of too many. This tragic cost is the most expensive. However, the global economy must pick up the pieces. Virtually every major policy initiative of ruling parties has ground to a halt. Additionally, the economic momentum that began in 2016 was halted immediately. Renovating the world's economy requires an intimate understanding of past financial collapse.

We identify three types of financial crises:

1 An 'Overheated' Economy. An Overheated crisis occurs when too much credit is provided by financial authorities and intermediaries. An example of this crisis occurred in ancient Rome and echoed many times throughout history. An example of this crisis is first notably recognized as the credit crisis of Rome in 33 CE when credit was offered to wealthy landowners to purchase land at great cost, but without sufficient yield. The economy required a bail-out from the personal fortunes of the Roman Emperor.

2 A 'Self-made' Crisis. A self-made crisis occurs when Government authorities mismanage credit and debt cycles due to overly ambitious plans of empire, conquest, or annexing territory. One example of this, though it has occurred frequently throughout history, is under the Third Empire of Napoleon III in France. Overly ambitious plans to revive the French Empire did not mesh well with a downturn in the global economy sparked by high inflation.

3 A Currency Crisis. A currency crisis occurs when financial authorities and intermediaries flood the world with too much or too little currency causing collapse by inflationary or deflationary pressures. The primary example of hyperinflation is the collapse of the Weimar Republic, but other examples include the 1997 Asian Financial Crisis.

National Economies can experience financial collapse by several different causes. Our list identifies three "types" of collapse relevant to The Post Pandemic Economy. Today, we are on the verge of a perfect storm of economic collapse because each type has elements in our current situation, most notably a weakened and collapsing global reserve currency. While each type of crises can have disastrous geo-political consequences, the collapse of the Global Reserve Currency led by the United States Petrodollar could spark international conflict on a scale not seen since the Great Wars.