Any possible political/economical explanation & current Corona-Virus situation?

[kristina]

Hello,

Unfortunately most countries are in total Corona-Virus lock-down right now, most people do not work and/or self-isolate themselves at home, many others have suddenly become unemployed and are therefore unable to work, because they cannot find another work-place, even if they would take the risk to go out to many places and try. Prestigious family businesses and shops etc. have suddenly gone bankrupt and almost everything seems to "stand still" in sudden "ghost-towns".

I have been wondering if there is an explanation for the question where all the money is supposed to come from to build "everything" up again in the future to have a chance and get "back to normal" again?

Is there any way that this sort of money so urgently needed by countries all over the world can be borrowed and if, from where? Or are governments just ordering their "Bank of ..." to print money ... and if that is going on, what would the future bring in such a case?

I am asking these questions, because this current world-wide situation almost seems to be too huge to explain, let alone comprehend ...

What do you think? 

[iolaire]

Thank you that is a good question kristina.  Here is the US we are printing money and for those with money 2020 was not a financially hard year - and health wise because we are more able to shelter in place.  Yet a huge swath of our citizens are feeling serious pain both financially and in their health.  I'm always a stock market/economic pessimist but I believe even more than normal that we are looking at another serious downturn.  They say 20+ percent of home loans face foreclosure in the US, and huge swaths of the population will face eviction once the moratoriums run out.  Although the new US admiration will try to calm the market and provide assistance to people I worry that we will see a very significant downturn as the stimulus are delayed.

[MooseMom]

This may help explain things (although it addresses the stimulus package from the spring, AND it applies to the US only), especially the part near the end about the current low cost of debt.

https://www.cbsnews.com/news/coronavirus-stimulus-package-pay-united-states/

[cassandra]

Yes I wonder that sometimes too. And  “a short explanation about the capitalist system” from Yanus Varouvlakis” explains it quite well too. Including why the victims of these situations (like natural disasters, pandemics, wars etc) will always be there, under investment in public services is not a coïncidence, but theworld keeps churning.

[kristina]

Hello again and many thanks for your kind replies and thoughts. I am still wondering about this question because if a country is forced to print too much money, is such an action not resulting in some sort of inflation which hits the population, as necessities like food etc, are becoming extremely expensive?

What do you think ? Many thanks again from Kristina.