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Five Causes of the Impending Global Crisis as Identified by Zadornov

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Moscow, April 9 – Former Russian Finance Minister Mikhail Zadornov said in an interview with the News Agency that a long period of free money and pumping economies, the pandemic, trade wars and geopolitical aggravation have become the main causes of the next global crisis.
He said earlier on Sunday that the global economy is already in crisis for the first time since 2008, with massive imbalances accumulating over that period.
“First, an unprecedented period of zero interest rates, both in the US and in Europe, that is, the money was basically worth nothing for more than 10 years. Therefore, there was an illusion that you could borrow at, say, 1-2%, Within the framework of investment projects and we expect your ideas to bear fruit in 10 years, ”Zadornov commented on the question of the reasons for the accumulation of imbalances.

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The second reason was the quantitative easing programs carried out by the European Central Bank and the US Federal Reserve, which injected free money into the economy. Zadornov described the epidemic as the third reason, as the authorities of many countries paid money to individuals and companies, which led to an increase in demand.
Finally, Western sanctions against Russia, which led to a change in supply chains and imbalances in the energy market, are the fifth “stroke” of the upcoming global crisis.

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