Chapter 52 Economic Pain II, the locomotive
2, train head
Hao said anxiously: "Debt, debt, debt! All the big and small countries in the world are wearing heavy debt. Under the pressure of heavy debt, will the world economy have greater downward risks?"
Xiang Shuhua said calmly: "When there are problems in the economy, there are two measures available to the government; one is to rescue through capital injection and liquidity support to curb systemic risks; the other is to allow it to go bankrupt, but face the possibility of a systemic crisis."
Guan Shijie sat there and said little. He was listening quietly to the children's words with the goal of making a final summary of their words. At this time, he couldn't sit still. He said: "The government is willing to adopt the former measure but not the latter measure."
Xiang Shuhua also said: "The Federal Reserve has gone through four quantitative easing times. The result of each quantitative easing has eased the crisis, but it has caused the Fed's balance sheet to expand sharply and the debt burden to increase. Leverage is always happy to increase leverage to increase debt and expand investment; deleveraging is always painful. It thinks that credit is tightening, and I think the Federal Reserve's quantitative easing is coming to an end. There is only the second measure to allow it to go bankrupt in the future."
Guan Shijie said: "Looking at the world, from North America to Europe, it has been a heavy burden of debt. Latin America's huge debt has always been a hidden danger to economic development. Asia is also entering a stage of borrowing new debts to repay old debts and using the central bank to print money. In the past, we said: The United States is the locomotive of the world economy. Now it seems that this locomotive is no longer possible. Its government relies on increasing the debt ceiling every year to maintain its operation. The debt of the entire country is as heavy as a mountain. Heavy debts have eroded the dividends of the country and dragged down the economic growth of the country.
After 2oo8 years, the economic development of the BRICS countries was very fast, driving the slow progress of the world economy and playing a role as a locomotive. However, in the past five years, since the Federal Reserve officially launched the quantitative easing policy exit plan, emerging market countries have generally encountered the impact of hot money fleeing, currency depreciation, and stock market crashes.
From this we can see how fragile the economic development of the BRICS countries is. Then in the following years and months, where will the locomotive of the world economy be? If the world economy has no locomotive, the hope of economic recovery will become a bubble, and the world economy will face the risk of another 'recession'-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
After the bistable director's "Children's True Economy" program was broadcast online on the children's website, not many people knew about it at the beginning. With the changes in the world's economic environment, people on earth felt very cool under the cold wind of the world economy, which made their minds wake up a lot by the cool wind. They rubbed their eyes and opened their eyes and realized that the world was not like the world they thought about. Everything in the world is changing. The economy is not always prosperous forever and has recession and depression. The real estate market is not only rising and not falling, prices are also rising and falling, and GDP also has positive and negative growth.
The economic chill prompted people to come out of the casino and start to pay attention to the trend of the world economy. Only then did they realize that the children's real economic program broadcast on the children's website, and they told the current situation and trend of the world economy early on. This made the world's politicians look at the children with admiration.
When faced with the risk of an economic recession, politicians had to give up their stature and learn from the children. The Self-Strength Academy has also become the focus of politicians' patronage.
Telephones and letters from all over the world floated to Boai University and to Ziqiang Academy like snowflakes. The people on earth asked the "Children's True Economy" program to continue to be better.
Bistable also feels heavy responsibility. In order to do a better job, he decided to adjust the members of the program. After research, the program team decided to add a person who understands the economy, which will make the program more profound. Bistable repeatedly decided to pull the hairy egg into the program team.
The program team started the production of a new episode, which is a different episode from the previous one, which is to conduct in-depth and detailed analysis of the trend of the world economy in 63 years.
Chapter completed!