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“…well before the pandemic struck, global debt (in corporate, household and government sectors) has piled up massively in the past decade, leaving these sectors highly vulnerable to any economic downturn.

And now that it has come, that downturn or slump is proving to be dramatic.”

https://www.scmp.com/business/article/3092798/busy-coronavirus-bailouts-world-has-taken-its-eyes-looming-debt-crash


If there were still hopes of a “V-shaped” comeback from the novel coronavirus shutdown [in the US], this past week should have put an end to them. The pandemic shock, which economists once assumed would be only a temporary business interruption, appears instead to be settling into a traditional, self-perpetuating recession…”

https://www.washingtonpost.com/business/2020/07/11/after-fastest-recession-us-history-economic-recovery-may-be-fizzling/


Here are four charts that suggest that [US] economic activity is leveling off or declining…”

https://www.businessinsider.com/economic-recovery-charts-suggest-us-coronavirus-pandemic-losing-steam-indicators-2020-7?r=US&IR=T


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“…the US economy was only able to rise from its sickbed last month because of the federal government’s fiscal life support

“…if Congress refuses to extend the $600 unemployment bonus when it expires at July’s end, consumer purchasing power will plummet.

What’s more, although the CARES Act’s provisions have left many working people better off, others have fallen through our welfare state’s many cracks.”

https://nymag.com/intelligencer/2020/07/congress-coronavirus-recession-stimulus-relief-unemployment-insurance.html


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Even when the Great Recession dampened consumer confidence and drove up unemployment things weren’t as bad for [US] retailers as they have been during the current Covid-19 crisis

The retail sector’s first-quarter operating income fell 57.7% compared with last year – and 71.1% when not including Walmart…”

https://www.cnbc.com/2020/07/10/first-quarter-retail-industry-operating-income-falls-58percent.html


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US banks set for worst quarter since financial crisis:

Soaring unemployment left many consumers unable to pay back their debts or take on new borrowing, forcing banks to set aside more to cover souring loans and crimping their net interest income. At the same time, nationwide stay-at-home orders left once-bustling downtowns and retail districts deserted…”

https://www.bloomberg.com/news/articles/2020-07-10/biggest-u-s-banks-set-for-worst-quarter-since-financial-crisis


New York City is starting to tentatively emerge from the ravages of the coronavirus pandemic but a revival in outdoor restaurant dining is facing a new hazard – a plague of rats.

https://www.theguardian.com/us-news/2020/jul/10/new-york-rats-diners-outdoor-restaurants


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Britain will suffer the sharpest peak-to-trough economic slump of any major economy this year, rating agency Moody’s warned on Friday

““We forecast a contraction of 10.1% in the UK’s GDP for this year,” a group of Moody’s analysts wrote in a note.”

https://uk.reuters.com/article/us-britain-rating-moody-s/uk-economy-to-slump-over-10-debts-to-surge-moodys-idUKKBN24B121


Average [UK] wages have fallen for the first time in six years, official figures will reveal this week, as millions of furloughed workers suffer a pandemic pay cut.”

https://www.telegraph.co.uk/business/2020/07/11/furlough-delivers-first-wage-fall-six-years/


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More than 250,000 High Street jobs could be axed as Britons shop online during the coronavirus crisis. Experts have warned that a slew of store closures at John Lewis and Boots are ‘just the start’.”

https://www.dailymail.co.uk/news/article-8514399/More-250-000-High-Street-jobs-axed-Britons-shop-online-coronavirus-crisis.html


In a few short weeks, the UK seemed to go from politically passive, to angry divided and aggressive.”

https://www.sundayguardianlive.com/opinion/covid-19-lockdown-given-form-angry-divided-britain


The European Commission has given a stark warning of the barriers that will go up between the EU and the UK when the post-Brexit transition period expires at the end of the year, whatever the outcome of negotiations.”

https://www.euronews.com/2020/07/10/brexit-britons-warned-of-thorough-eu-border-checks-after-transition-period-ends


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The social and economic crisis left in the wake of the ongoing Covid-19 health pandemic is being capitalised on in Italy by a mafia group called Camorra.

One million people have been pushed into poverty in the country as a result of it, while another 8 million are temporarily unemployed.

“The Camorra has seen it as an opportunity to offer those in need ‘help’ when they could not get state support.”

https://www.euronews.com/2020/07/10/covid-leaves-italy-poorer-as-mafia-groups-cease-new-opportunities


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By corrupting local officials, [the Mafia] have been able to make vast profits from contracts given to their own front companies, establishing monopolies on health services ranging from delivering patients in faulty ambulances to transporting blood to taking away the dead.

All these services were billed to the Italian taxpayer through the country’s centrally funded yet regionally administered health service, which distributes an annual budget of billions of euros — an unrivalled prize for criminal gangs.”

https://www.ft.com/content/8850581c-176e-4c5c-8b38-debb26b35c14


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Hundreds of protesters in Serbia clashed with the police in front of the parliament building in Belgrade on Friday…

“Protests rocked the country for the fourth consecutive day.”

https://www.dw.com/en/serbia-protesters-try-to-storm-parliament-amid-fresh-unrest/a-54135350


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Over the past four days, Bulgaria has been shaken by a wave of anti-government protests with thousands marching through the capital Sofia “against a mafia model of governance”.

“Demonstrators have demanded the resignation of Prime Minister Boyko Borisov, and smaller protests have been held in other cities in the country.”

https://www.aljazeera.com/news/2020/07/buglaria-rocked-protests-coronavirus-fears-200712173239817.html


Today, in a sign of growing uncertainty as Lebanon slides into a dramatic socioeconomic collapse, most …traffic lights have abruptly stopped working. About three-quarters of the stoplights in the city have failed in the past couple of weeks, leaving motorists to navigate the streets of their own accord.”

https://www.aljazeera.com/news/2020/07/dying-light-lebanon-crisis-failing-traffic-signals-200712144238025.html


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Police and municipal inspectors on Monday morning clashed with demonstrators [Israel] as they cleared a protest site for the second time near Prime Minister Benjamin Netanyahu’s official residence.

“Video footage from the scene appeared to show police officers forcibly taking equipment from the encampment and confronting protesters.”

https://www.timesofisrael.com/clashes-as-police-clear-protest-encampment-outside-netanyahus-residence/


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Tens of thousands of people protested in Russia’s Far East on Saturday in a rare display of opposition to President Vladimir V. Putin

The protests in Khabarovsk… and several other towns were the largest in Russia’s usually somnolent provinces in many years, rivaling or even exceeding in size demonstrations last summer in Moscow, the main center of opposition to the Kremlin.”

https://www.nytimes.com/2020/07/11/world/europe/russia-protests-putin.html?ref=oembed


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Iran’s President Hassan Rouhani said Saturday that lockdowns meant to curb the spread of the pandemic could lead to street protests over economic problems

A sharp rise in subsidized gasoline prices led to four days of unrest in cities and towns across Iran in November…”

https://abcnews.go.com/International/wireStory/irans-president-warns-lockdowns-lead-protests-71733833


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“Reserve Lender of India governor Shaktikanta Das requested banking institutions and finance companies on Saturday to perform so-termed pressure checks…

The financial fallout of the coronavirus sickness pandemic may well guide to bigger non-carrying out property, or terrible loans, and money erosion at Indian banking institutions, he warned, terming the Covid-19 outbreak the worst financial and health and fitness disaster in a century.”

https://presstories.com/2020/07/11/recent-crisis-worst-of-century-rbi-india-news/


Some 87 percent of classified loans became bad… imposing severe threat for financial stability of [Bangladesh’s] banking sector as well as attaining macro-economic stability of the country.”

http://www.dailyindustry.news/banking-sector-holds-tk-2-trillion-default-loan/


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China’s banks should brace for a big jump in bad loans due to coronavirus-induced economic pain, the financial regulator said on Saturday…

“…noting the deterioration of asset quality at some small and mid-sized financial institutions was accelerating.”

https://uk.reuters.com/article/us-china-finance/chinese-banks-must-brace-for-surge-in-bad-loans-regulator-says-idUKKCN24C0C4


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“…economists say China’s demand isn’t providing as much oomph as it did during the past recession.

“Some countries have been hit so hard that even solid Chinese demand can’t get them out of trouble… Concerns over rising debt have made Beijing warier of engineering more growth through stimulus this year.”

https://www.wsj.com/articles/why-china-isnt-expected-to-power-a-global-recovery-11594555200


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With the unprecedented rise in the cost of staple foods and consumables completely priced out of the reach of majority of Nigerians, obtaining a three square meal these days, is now a luxury many cannot afford

“Nigeria is not spared as inflation rate has hit all-time 12.2 percent, while general food index did not just rise, but has doubled.”

https://www.salaamgateway.com/story/up-up-goes-food-price-in-nigeria


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Opposition leaders in Mali have called for President Ibrahim Boubacar Keïta to resign, after they rejected concessions intended to quell growing unrest.

“At least four people were killed during street protests on Friday, and there were further clashes on Saturday.”

https://www.bbc.co.uk/news/world-africa-53382774


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At least three people have been killed in the Democratic Republic of the Congo

“…protests in several cities against the nomination of an election commission head turned violent.”

https://www.aljazeera.com/news/2020/07/drc-3-killed-protests-election-chief-nomination-200710074318115.html


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The Covid-19 pandemic is the “job-killer of the century”, Fiji’s prime minister has said, as economies across the Pacific face collapse from economic and travel shutdowns, exacerbating existing illnesses, and potentially driving people into hunger.

“…the economic impacts have devastated tourism- and import-dependent economies.”

https://www.theguardian.com/world/2020/jul/11/job-killer-of-the-century-economies-of-pacific-islands-face-collapse-over-covid-19


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COVID-19 has hit the global car industry harder than any other financial crisis

…the global auto industry sold about 87.56 vehicles in 2019. But this year, the figure is expected to plunge by 20 percent to about 70 million…”

[Why would they recover at all when they were already starting to slide last year?]

http://www.koreaherald.com/view.php?ud=20200712000044


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The global shipping industry’s outlook for the next 12 to 18 months remains negative, unchanged since March, as companies’ earnings forecasts fall, Moody’s Investors Service said in a new report.

“Expectations that the global economy will shrink in 2020 and a “long and bumpy” road to recovery are the key drivers for the negative outlook, the credit ratings agency said in a report.”

https://www.hellenicshippingnews.com/choppy-waters-forecast-for-global-shipping-industry-over-next-12-18-months/


The failure to learn the lessons of the last stimulus may now doom emerging markets to another decade of subpar growth and political instability.”

https://www.financialexpress.com/market/emerging-markets-are-going-to-pay-the-price-of-failure-to-learn-lessons-from-the-last-stimulus/2022155/


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The pandemic has exposed and reinforced deep inequalities across the world, with the true extent yet to be seen, according to a major new report.

The crisis in the poorest countries threatens to escalate into a catastrophe as job losses and food insecurity mount.”

https://www.theguardian.com/world/2020/jul/11/global-catastrophe-looms-as-covid-19-fuels-inequality


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Debts racked up by companies across the world reached a record $8.3trn in January this year and are expected to surge by a further $1trn in the wake of the Covid-19 pandemic… global company debt was up 8.1% year-on-year, its fastest rate of growth for five years.

“…companies borrowed to fund takeovers, share buybacks and dividends, as well as to invest and debts have risen “significantly faster” than profits over the last five years.”

https://www.investmentweek.co.uk/news/4017606/record-company-debt-levels-set-soar-usd1trn-2020-janus-henderson


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It is when the broad masses “lose faith” in their currencies that things really start to move… I am guessing that this will happen in 2021.

“But, I am not too concerned about that. Years ago, I figured that this would be the endgame, and there wouldn’t be much anyone could do about it.”

https://www.forbes.com/sites/nathanlewis/2020/07/10/modern-monetary-theory-goes-mainstream/?fbclid=IwAR29wMX13IVycx9lKDFEUZ53DGBBcJZpbyppYgnsNHQa94ye5HmQoaAc1C8#57a3862b21e5


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