Second outbreak, and now what ????

The panorama that is coming with the new outbreak of the covid-19 is interesting; the position of several countries not to confine themselves and assume a new reality in the face of the great scenario of economic deterioration is not a thing to let pass under the table. However, there are many measures that have been taken contrary to many warnings from the WHO, not to relax, not to neglect, and that is that a flare-up can increase the real tensions and fears in the economies, very unlike the behavior of the markets.

The truth is that the outlook is not looking good for many sectors, with supply chains that are susceptible and vulnerable to the effects of inflation. I continue to see with concern that there are no concrete solutions that stimulate the recovery of a system towards savings and capital. This pandemic continues to tear the seams of a weak and manipulable system of inequality. It is incredible that we have a positive market record with a labor force practically sunk in unemployment and confinement.

We are losing course towards a macro solution, we are facing the beginnings of a possible non-traditional and multidimensional emerging economic collapse. So what to expect, what to do, I am not an economist but I see clearly that measures must be taken to adopt a reinvention of the supply chain, actions that help protect liquidity and prevent the drop in GNP.

The recovery must be for everyone and not directed towards a tiny group that seizes these billions and billions of printed papers that only seek to keep a scarce 1% of the market afloat. The issuance of currency does not generate real wealth, it only transfers the wealth to a few.

In a fiat system, risk and reward are permanent, financial institutions are left with the reward, and the poor with risk and increasing debt at exponential and unpayable values. The truth is I do not see far-fetched now to think that many countries migrate towards a centralized digitization, or even return to a metal endorsement, something that is different from the paper that some classify as being close to a collapse, only time will tell.

For my part, I will continue reading and writing, analyzing and seeing what panorama is drawn to us on the horizon; There will always be an exit but it will take time to get it.