The villain is back! Dr.

Doomsday: The economy may decline

again, and even trigger the Great Depression

Doomsday Dr. Roubini remarked that the world economy will not "V-shaped recuperation",
but may become W-formed, risking another collapse!
Benefited through the recovery of employment information, the three major U.S. stock
indexes all attained success last week, and Goldman Sachs analysts also predicted that the
U.S. economy may begin to recover in September. But Nouriel Roubini, the Doomsday
Doctor, certainly disagrees. He believes that the worldwide economy will probably decline
once again. Let's listen to what this economic expert who accurately predicted the 2008
financial meltdown must say.
Dr. Doom: Dr. Doom (Lubini), resource: "Yahoo Finance" interview

_Image picture of Dr. Doom Roubini _

Dr. Doom Roubini said in an job interview with "Yahoo Financing" last week that although the
global economy provides rebounded under government funding, the latest recovery has been
fairly poor. This phenomenon may symbolize that the economy will assume a "U-shape".
recovery.
Dr. Doom Roubini furthermore said: "Although the economic recovery appeared as if a "V-
shaped" in the beginning, it'll soon become a "U-shaped".
In addition, if the new crown epidemic worsens again, you will have a risk of a "W pattern"
and a double-dip recession. At that time, there will be a fresh round of economic blockade,
and the economic climate will shrink and deteriorate once again.
The reason why Roubini is not optimistic about the economic prospects mainly comes from
"zombie companies" with heavy debt and high leverage. Theoretically, the Government
Reserve will inject funds into the market in order to raise the liveable space of the business
so the business can continue steadily to hire workers and maintain consumption, but zombie
companies are likely to eat these sources.
The so-called zombie companies refer to companies that are unable to repay debts, but can
nevertheless continue to operate on borrowings. Under the environment of ultra-reduced
interest rates, there were increasingly more zombie companies previously ten years. These
zombie businesses will eat up economic momentum and consume productivity. Resources
that'll be injected are usually allocated to the wrong place.
The wave of bankruptcy of big companies is about to begin
Readers can find that many large companies have recently announced personal bankruptcy
and reorganization, including nourishment and health items company GNC, JCPenney
section shop, Pizza Hut's largest franchisee NPC International, and oil and gas exploration
corporation Cheasapeake's.
The above-mentioned companies are all "asset-heavy" companies, which means that they
need to purchase heavy machinery and equipment and lay out retail channels. On the one
hand, they are able to expand profitability, and on the other hand, they are able to increase
market talk about and raise the barriers to entry. However, through the epidemic, the income
of these companies dropped sharply. If most of the typical funds leverage is expanding, then
it is not amazing that they can go bankrupt at the moment.
These bankrupt companies will negotiate debts with banking institutions. Although they can
continue steadily to operate theoretically, they'll inevitably limit capital expenditures to avoid
deterioration within their financial conditions.
Roubini said:
"The labor cost revenue of an enterprise is the labor revenue of the employees, as well as
consumption. Therefore, because the enterprise increases savings and decreases
investment, the family earnings will inevitably lower."
V U W L, eventually we will enter the fantastic Depression
Neither the U-shape nor the W-shape is what Roubini is most worried about. What he worries
is that when this situation is true, the economic recovery will eventually turn out to be an L-
shape, and even in the next ten years, the world economic climate may enter the Great
Depression era.

Roubini believes that the purchase of economic growth will be V-shaped U-shaped W-
shaped, and lastly L-shaped. To make matters worse, in addition to the fresh crown
pneumonia, the issues of the Sino-US trade war, the US-Iran conflict, and Brexit may also be
imminent.
In fact, a long time before the brand new crown pneumonia, companies in the usa, Europe,
China along with other elements of Asia started to control capital expenditures during the
past few years, which means that the global technology, manufacturing and commercial
sectors have begun to fall into recession.
At existing, the key reason why the global economy is still able to "maintain momentum" is
due to quantitative easing and the large numbers of countries printing currency. If the virus
really breaks out again or the industry war worsens and monetary policy is no longer useful,
the world may belong to the Great Despression symptoms of the 1930s.
"I predict that the Great Depression will happen, not that it'll be around 2020, but sometime
between 2020 and 2030."
With a distorted economic climate, the Fed has become a market maker. In addition to the
economic recovery that may not really be as good as market objectives, lots of people are
furthermore beginning to feel uneasy about this kind of money printing rescue.
H1B Visa for Blockchain Developers , the founder of Bridgewater Fund, believes that the
marketplace is not any longer free now, because the recent procedures of central banks like
the Government Reserve possess begun to separate from the traditional economic system
and commence to dominate the administrative centre market.
Under normal conditions in the past, the main bank helped the banks save money so that
these banks could borrow funds from the main bank in the future, plus they would further
lend to those who could spend the money for return. This made a credit score system, and all
financial property competed with each other, and the entire credit system was expanded.
However, now it is the financial assets purchased simply by the Fed or the national debt
purchased simply by the Fed which have become the main traveling force of the overall
market. Which means that the Fed has already printed money and the worthiness of money
has gradually depreciated.
Cash is not any more valuable and should find another safe haven
We believe that although current cash is not any longer in value, investors still require a
certain degree of money as insurance in the face of an uncertain upcoming.
On the other hand, idle funds could be deployed in a "barbell strategy" to allocate a small
part of funds to assets with high price fluctuations, such as Bitcoin; on the other hand, they
can be allocated to financial loans with low risk and stable benefits.
Allocation of assets in Bitcoin can be a technique adopted by billionaire Paul Jones. He
believes that the best strategy to maximize profits is to have a batch of fastest horses (The
Fastest Equine). For these quick horses, he thinks it really is Bitcoin.
The electronic gold value of Bitcoin was highlighted in the Great Depression!
Cheng Wei, Pinterest: New Aspects of Blocks Why is Bitcoin called electronic gold? Where
may be the gold worth of Bitcoin? (New highlights of the block)
In terms of low-risk, stable-benefit financial products, investors can choose BinFi to invest in
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paid by "Agni" users every month. During the contract period After the end, Rock users can
recover 100% of these loaned property and obtain a revenue of over 8% of the annualized
remuneration.

Disclaimer: At the time of writing this short article, the editor did not buy any digital foreign
currency assets. This article may be the new aspect of the block-Cheng Wei, original
function, please indicate that it comes from "the new aspect of the block" when reprinting!
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